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3.0. EDSR 08-19-2002 Item # 3 • City of Elk -�-� River MEMORANDUM TO: Economic Development Authority �j FROM: Heidi Hall, Economic Development Assistant o DATE: August 19, 2002 SUBJECT: Strategic Industrial Marketing Plan Update Attachments • Strategic Industrial Marketing Plan 2000-2002 • Strategic Industrial Marketing Plan 2002-2002 Assessment&2002-2004 Action Plan • Background In December of 1999, the EDA hired Anita Duckor of Duckor and Associates to complete the City of Elk River's Strategic Industrial Marketing Plan 2000-2002. The Plan was completed and accepted by the EDA in June of 2002. The plan provides a guide for the City's economic development activities,including the industrial siting process and the advertising and public relations strategy. Many of the suggested action steps within the Plan have been completed since,including the following: • Update Industrial Land&Property Inventory • Develop Siting/Expansion Process &Plan • Develop Advertising Campaign for 2001 and 2002Develop relationships with identified key accounts • Revise TIF,Micro Loan, and TRF Policy and Applications • Develop Communication strategy (new logo and marketing materials) • Conduct Business Retention &Expansion visits & survey • • Issue In May of 2002, the EDA hired Ms. Duckor to assist in updating the Plan. Included in the update are the following items: • An evaluation assessment of the 2000-2002 Plan and marketing activities • Update and revise Strategic Industrial Marketing Plan for 2003-2005 • Action Plan for implementation years 2003 through 2005 • Success Factor Measurements Ms. Duckor will present and answer any questions regarding the Strategic Industrial Marketing Plan 2002-2002 Assessment&2002-2004 Action Plan at the EDA at the August 19,2002 EDA meeting. Recommendation Staff recommends that the EDA accept the Strategic Industrial Marketing Plan 2002-2002 Assessment&2002-2004 Action Plan as presented by Anita Duckor of Duckor and Associates. • • CITY OF EL El • STRATEGIC INDUST IAL MARKETING PLAil 2000-2002 St.Cloud 'y 10 169 1.-94 City oF.'� 1 II E1ki, River 101h;: x G THE INDUSTRIATtHHUB FOR LIGHT MANUFACTURING IN THE NORTHWEST METRO A Business Location with,Full City Services and Amenities 10 1-694 3 1-94 ' St Paul 9inncapclis '-'1'- fi, • Rti 1-494 • Marketing Committee Jim Barthel Chris Carlson Dr. David Flannery Renee Sande Gary Santwire Jim Simpson Daryl Thompson City Staff Pat Klaers Marc Nevinski Consultant Anita S. Duckor • Duckor & Associates, Inc. June 2000 Table of Contents . Vision 1 Statement of Purpose 2 Value Proposition 2 Product Offering 3 Market Strategy, Objectives, &Positioning 7 Marketing Positioning 7 Marketing Strategy 7 Product Delivery Process Strategy 8 Client Support and Service Strategy 9 Clients'Needs and Wants 9 Competitive Assessment 13 Key Account Relationship and Lead Generation Strategy 13 Pricing Positioning 15 Communication Strategy 15 Promotion &Advertising Strategy 16 • Public Relations Strategy 18 Strategic Partnership Strategy 18 Challenges and Risks 19 Success Measurements 20 Budget 20 Charts and Appendices Chart 1 : Employment by Industry 3 Chart 2 : Industrial Composition 3 Chart 3 : Tax Base Composition 4 Chart 4 : State and Regional Services and Programs 6 Chart 5 : Client Requirements 9 Chart 6 : Alignment Analysis 11 Chart 7 : Key Account List 14 Chart 8 : Promotional and Advertising Partnership List 16 Chart 9 : Advertising and Placement Schedule 16 Chart 10 : Strategic Partnerships 17 Location Site Process A Competitive Assessment B Revised SWOT Analysis C Strategic Industrial Marketing Plan Schedule D Budget E • Vision To be the light industrial hub for small to medium-size firms in the northwest metro region. Statement of Purpose The purpose of the Strategic Industrial Marketing Plan is to establish a process that (1) Attracts growth-oriented, light industrial businesses which increases and diversifies the tax base, (2) Complements the existing industrial base, and (3) Guides prospective clients through the entire site selection and development process, which builds long-term relationships. Value Proposition For small to medium-sized light industrial clients Who want to locate or expand their firms in a business-friendly community Our City (the Product)which is strategically located between the Metro area and St. Cloud offers the resources, tools and business incentives • That meets the client's need to grow Unlike any other community in the northwest metro area Our Product(the city)builds long-term relationships to retain, expand and recruit businesses with professional and responsive City staff • 2 • Product Offering Currently, the City of Elk River's economic base is: Chart 1 City of Elk River Employment by Industry(SIC) 1999 Industrial Machinery 28% Rubber&Plastic Fabricated Metal 9% 22% Stone,Clay,Glass 15% Electronic ° Equipment 22% Chemical&Allied / \ Instruments Products 3% 0% Transportation / Wood Products Equipment Furniture&Fixtures 0% 1% 0% Chart 2 • City of Elk River Industrial Composition 1999 Industrial Machinery- 16 Stone,Clay,Glass Rubber&Plastic-3 4 Chemical&Allied Fabricated Metal-2 Products-1 Transportation � - Electronic Equipment-1 / Wood Products-1 --Equipment-2 --Instruments-1 Furniture&Fixtures- 1 • 3 Chart 3 • City of Elk River Tax Base Composition 1999 Residential 64% ---- Apartments 5% -74,, A Resorts 0% Seasonal 0% Industrial/ / �` Industrial Commercial Agriculture / / 3% 7% 17% j Public Utility Personal Property_,! 3% Railroad 1% 0% The top three businesses by Industry by numbers are Industrial Machinery, Rubber& Plastic, Stone, Clay and Glass. As noted, Industrial Machinery, Fabricated Metal, Electronic Equipment, Stone, Clay, Glass, and Rubber&Plastic sectors make-up the highest employment by Industry. • The marketing effort will build off these established industrial sectors. The City of Elk River offers • light-manufacturing firms available land • a comprehensive financial package • confidential site selection services • customer- driven professional staff, and • a strategic location between the Twin Cities metro area and a regional urban area, St. Cloud. 4 • Action • Develop attractive signage for both East and West Business Parks (2000) • Develop business parks fact sheets (2000) • Revise and enhance City of Elk River's web site(2000) • Use existing City of Elk River brochure • Enhance parks' image by building trails and central ponds, if feasible City of Elk River's Product Offering ❑ Confidential Location Site Services ❑ Available Industrial Land ❑ Land Acquisition Incentives: o Tax Increment Financing ❑ Tax Rebate Financing o Micro Loan Fund ❑ Information and knowledge of state, regional and local products and services that can help an industrial client locate, grow and prosper 5 • Chart 4 State and Regional Services and Programs Small Business Financial Education& Technology Export/ Management& Assistance Training Services International Consulting Trade Services Support • Anoka&St. • Minnesota • St.Cloud State • Manufacturers • Minnesota Trade Cloud SCORE Department of University Alliance Office Offices Trade and Economic • St.Cloud • Minnesota o Guaranteed • St.Cloud State Development Technical College Technology,Inc. loans and University Small financial Business o Tax-exempt • Anoka-Ramsey o Manufacturing consulting to Development Bond Pool Community Technology exporters Center College Assistance o Capital Access • The Collaborative Program • Anoka-Hennepin o Technology Technical College Information • Minnesota o Minnesota Services Cooperation Investment • North Hennepin Office Fund Program Community • Minnesota High College Tech Association • Minnesota Project • Initiative Innovations,Inc. Foundation • Hennepin • Minnesota Project Technical College Innovation,Inc. • Anoka/Sherburne County Capital • University of Fund Minnesota • Central Minnesota • Educational • Development Employment Company-Coon Partnership Rapids ■ Minnesota Business Finance Corp.—St.Cloud • Minnesota Investment Network Corp. • 6 • Market Strategy, Objectives, & Positioning ❑ To establish City of Elk River as the hub for light manufacturing firms in the northwest metro region of the Twin Cities by 2005. ❑ To build-out East and West Business Parks with a range of building sizes that meets the City of Elk River's design standards by 2010. Marketing Positioning City of Elk River's marketing positioning can be one of strength because of its • Desire and commitment to attract light-manufacturing firms • Land acquisition incentives and competitive financial package • Customer-driven professional staff • Community with full city services and amenities, and • Strategic location (Twin Cities - St. Cloud) The marketing position will only be achieved with the understanding that resources are dedicated to long-term objectives and that there is proactive patience for the type of light manufacturing firms the city desires to attract. Marketing Strategy • To launch a campaign to industrial sectors that reflects the current industrial base. Action • Target the following Standard Industrial Classification sectors: Industrial Machinery, Fabricated Metal, Electronic Equipment • Research and gain working knowledge of each sector • Launch campaigns annually (2001-2002-2003) • 7 • Product Delive Process Strategy gy To provide excellent location site services for light manufacturing firms. The city delivers its product, siting light manufacturing firms,by offering and providing location site services. In order to provide excellent service, everyone involved in the Location Site Process needs to know the process itself, as well as his or her respective roles and responsibilities. It is critical to not only attracting and siting a client but also in meeting or exceeding the client's expectations of the city and building long-term relationships. The Location Site Process includes the following 8 sub-processes and responsibilities: 1. Industrial Marketing Management(Economic Development) 2. Project Account Management(Economic Development) 3. Site Visit(Economic Development and Business Community) 4. Proposal Development(Economic Development/Broker) 5. Financial Package Approval (Finance, Economic Development Authority, City Council) 6. Site Approval (Site Plan Review Committee, Planning Commission) 7. Building Inspection Approval (Building Department) 8. On-Going Client Relationship (Economic Development) Please note Appendix A for Location Site Process in more detail. Action • Develop roles and responsibilities of process participants (2000) • Conduct an inter-department Location Site Process assessment including training on customer service(2000) • Assign Economic Development to be the lead in the Location Site Process and be responsible for the client throughout the process (2000) • Design and develop proposal prototype e.g. mass customization(2000) • Select and install a software account management system e.g. ACT or Goldmine (2001) • Conduct as needed project meetings to discuss status and issues (On-going) 8 Client Support and Service Strategy • To surround the client with service. Action To meet the client requirements of Timely and accurate information and Ease of doing business with the City, the city needs to do the following: • Develop location site services as a core competency (2000 and on-going) • Develop a"How to do Business with the City of Elk River" guide(2000) • Provide easy to read, client friendly, and concise information materials (On- going) Clients'Needs and Wants The client requirements that drive the site selection are real estate, financial incentives, city services and costs, geographic attributes, labor,housing, education and business network support. Below are the critical client needs that have been identified and confirmed by interviews, field experience and by reviewing the competitors' product offerings. " • Chart 5 Client Requirements Client Requirements Client Drivers Client Value(Benefits) Site Needs • Space Availability Need to locate/relocate immediately Ability to locate now • Lease • Build/Own Need to reduce business costs Reduce capital requirements • Purchase Existing Desire to build own building Offers flexibility and ability to customize Facility Needs building • Bulk storage • Warehouse • Light manufacturing with office space Expansion Options Need to expand with business growth Expand at same site without a costly move • Availability • Cost of Suitable Sites Site Needs: • Size of parcel Meet current&future building demands Operate efficiently&cost effectively • Configuration of land cost effectively and predictability. • Type of facility • Environmental factors • Price • Rail spur access Price Need additional$$to reduce upfront Use$$for business results Free Land investment • Market rate 9 Client Requirements • Client Requirements Client Drivers Client Value(Benefits) ";�i N CML4 :f °i', ,``S,2.,,,,.r; ^• .. ;iO4 b ,jE,;. 741;00-,.‘ Tax Increment Financing(TIF)/Tax Need$$to assist with reducing project Able to use$$for business results Abatement cash flow (Pay as you go) TIF Need up front financing to reduce project Reduces debt service (Upfront/Bonds) cost TIF Land Contribution Reduce upfront costs and provide equity Ability to put more$$into business Loans Gap financing,reduced cost of money Ability to acquire more funds for project Low property taxes Reduce business costs Use$$for business results Special Infrastructure Needs: Electric, Special production requirements or Reliability and Capacity for production Gas,Communications,Water&Sewer communication linkages Availability,Reliability&Cost Timely and accurate information Need to know information to make a well Avoid wasting time and$$ informed decision Ease of doing business with the city Don't want to waste time or energy on Know that business is wanted and zoning,or other permit issues appreciated in the community tfIC:t ''I'' "a %�F ,�`" a�-` c-., .. .s Sys,.,,?;�,hi a .V"•:. Proximity to St.Cloud/Metro Close proximity urban centers Reduce business costs Access to: Easy and affordable access to vendors, Reduce business costs • Suppliers suppliers,and customers • Support services • Raw materials • Customers • Vendors Transportation: Need access to major international airport Reduce staff traveling time and • Highway for national and international markets transportation costs and transport product • Rail more quickly • Air • Industry Compatibility Desire to fit in and avoid conflict Be a good neighbor and community ,r, partner A Labor Force: Number,quality,skill and wage level • Highly skilled Availability Production&profit • Semi-skilled • Unskilled • Clerical • Professional/Technical • Managerial 'T,PAY9. � ✓� - �R ��Xl, �r�" �"�T.:..��, �%�„ �.'�r a ..y kyy�n�i:`� ".°�.�. a� ... ,ire.atmivitt Education: Need a good education system available Well educated children • K-12 for my employees and my children. • Technical training Need to continue to train my employees. Well trained employees Housing Needs:Current Stock Availability Want to have executive and affordable Choice at all housing levels &Price Levels housing options institutional Support&Network Need for business formation,support and General business and R&D Support, technology development support Training$,to help my business be successful 10 • The following Alignment Analysis chart outlines how the product offering (the City of Elk River)meets these client requirements. Chart 6 Alignment Analysis Client Requirements & the City of Elk River Client Requirements City of Elk River Value of Attribute i, MM l s i lacy i x .- Site Needs • Space Availability • West Business Park—120 Acres Advantage • Build/own • East Business Park—40+Acres Advantage • Lease • Generally no lease space available Disadvantage • Purchase Existing • Limited opportunity to purchase existing. Disadvantage Facility Needs • Bulk storage • Warehouse • Light manufacturing with Neutral office space • Can build or lease light manufacturing Expansion Options • Availability • Land available to purchase Advantage • Cost of Suitable Sites • Market rate equal to or less than metro Advantage Site Needs: • Size of parcel • Medium to large lots available (+)For larger co. • configuration of land, • Conducive to most development Advantage • type of facility, • Brick or Concrete construction required (-)Smaller co. • environmental factors • None,all Greenfield Advantage • price • Market rate,less than metro Neutral • • Rail spur access • Available in downtown or could construct in East Advantage Business Park. Price • Free land • Write down with TIF or contribute city owned land. Neutral • Available • Market rate ., ... \..... Tax Increment Financing(TIF)/Tax • Able to provide TIF for 25,000 sf or more and Tax Neutral Abatement(Pay as you go) Abatement for smaller projects TIF • Willing to provide as additional incentive for highly Neutral (Upfront/Bonds) desirable development. TIF Land Contribution • Available in East Business Park and small parcel in Neutral West Business Park. Loans • Available Py Advantage ..::ITi l ',COEM 'CAY i '., ,_.. �,.,. .. r G/�,�i/f, .,: a ISNI 5 Low property taxes • Below average of 129.332 Advantage -Elk River 1999=121.130 2000=119.362 Special Infrastructure Needs: Electric, • All infrastructure in place and able to provide needed Advantage Gas,Communications,Water&Sewer capacity in most cases Availability,Reliability&Cost Timely and accurate information • Need to improve location site process Working to establish location site process. Ease of doing business with city • Need to improve location site process Working to establish location site process. 11 Alignment Analysis Client Requirements City of Elk River Value of Attribute Proximity to St.Cloud • 40 minutes on Hwy 10 Advantage Access to: • Suppliers • Hwy 169,101,and 10 plus the proximity of 1-94 offers Advantage • Support services easy access to customers,suppliers and services. • Raw materials • Customers • Vendors (Proximity to Metro) Transportation: • Highway • Hwy 169,101,10&close proximity to I-94 Advantage • Rail • BNSF main line spur b/w Jackson and Proctor Ayes. Advantage Possibility in E.Bus.Park • Air • No local air strip Disadvantage Industry Compatibility • Desire light industrial Advantage Labor Force: Number,quality,skill and wage level • Highly skilled • Draw from NW metro and out-state(i.e.Princeton& Neutral • Semi-skilled Milaca)labor pool. • Unskilled • Clerical • Professional/Technical • Managerial ?; M"�, ,A Education: • • K-12 • 98%graduation rate—1999 Neutral • 24%go on to 2 year college • 28%go on to 4 year college • Student:Teacher=16:1 • Student:Computer=12.5:1 Neutral • Technical training • See Chart 4 Housing Needs: Current Stock Availability • TBD TBD Price Levels. • Average existing Sale Price 1989=$139K Neutral Institutional Support&Network • See Chart 4 Neutral • 12 Competitive Assessment After collecting and reviewing inform:tion on the competition, six current key competitors were identified, Anoka-R;msey, Rogers-Hassen Township, Big Lake, Becker, Monticello and Albertville. ndover, Dayton and Otsego were identified as potential competitors in the future. Please note Appendix B for the Comp-titive Assessment and Appendix C for the revised and updated SWOT Analysis. Key Account Relationship and Lead eneration Strategy To establish the City of Elk River as t e place to site a light-manufacturing firm with economic development key influencer leaders and providers. Action ■ Establish and implement an o reach strategy to position the City of Elk River as the light-manufacturing hub fo the northwest metro region. (2001) • Identify top 10 key ac 'tints • Assign top 10 key acco nts to city staff • Identify purpose and g e als for key accounts • • Meet with key account. quarterly and have monthly contacts by telephone, e-mail or written com unication • Keep track of account i teractions by project management software • Meet monthly with Cit Administrator to discuss key accounts • Add new key accounts .nnually • Establish and maintain key ac•.unt relationships to help: • Inform the key influen•ers that the City is "Open For Business" • Promote the benefits o'siting a business in Elk River, and • Enhance the city's cred bility that it is a player in the economic development field. • 13 The key account relationships are the following state organizations,regional and local economic development organizations, state and local trade associations, key developers and brokers, location site consultants, and financial institutions. Chart 7 Key Account List Economic Development Manufacturing&Trade Key Developers& Location Site Accounting&Financial Organizations Associations Brokers Consultants& Institutions Construction ■ Advantage • Manufacturers • Opus—Craig • Corporate Real • Ernst&Young Minnesota Alliance Patterson Estate,Inc.— Bruce Maus • KPMG Peat • Department of • Minnesota • Ryan Companies Marwick Trade and Technology,Inc. —Tim McShane • Kraus-Anderson Economic Construction • Norwest Venture Development • Minnesota Project • John Lavander Company Capital Innovation,Inc. Caliber Development • Mortenson • Minnesota • Minnesota Project Investment Outreach • Told Network Corp. Development— Bob Cunningham • First National Bank of Elk River • Nelson Tietz& Hoye—Russ • The Bank of Elk Nelson River • Keewaydin— Peter Kitchack • • CB Richard Ellis —Chuck Caturia or Kurt Knoeff • Grubb&Ellis- Ron Sholder • Cushman& Wakefield—Mark Evenson • John C.Weicht& Associates—John Weicht • Rivers Crossing— Gary Santwire • Riverside Companies—Rick Foster • Amcon—Jim Winkles • 14 Pricing Positioning • To offer land acquisition incentives including a financial package that reflects a good- value and competitively priced product. Action • Revise Tax Increment Financing Policy and Application, Micro Loan Fund Policies and Application, and Tax Rebate Financing Policy and Application forms to be consistent with new communication design and format(2000) • Hire Economic Development financial consultant to negotiate and package significant and highly critical and selective projects (As appropriate) Communication Strategy To increase awareness by light-manufacturing firms in the Twin Cities and St. Cloud of the value and benefits of the City of Elk River's industrial site offerings. Action • A communication strategy needs to be developed and launched to ensure key messages, language and terms are used consistently through-out all communication materials and mediums including proposals,brochures, direct mail, Web site, advertisements, and other promotional materials. Coordinate with City of Elk River's overall Communication strategy and plan. (2000-01) • A core tag line like"The light industrial hub in the northwest metro" should be used in all written materials. To help position the City, the same core messages to be used consistently, for example the City of Elk River's Economic Department : • Helps you confidentially with your siting needs • Provides timely information for all parties, and • Provides a seamless siting process. (2000) • Select at least three colors in a chosen color palette to be used in all materials. Select one type of font for all written materials for consistency and branding. (2000) • Continue to use the"Elk"image. • 15 Promotion &Advertising Strategy STo promote that the City is "Open For Business"and to generate leads for the East and West business parks. Action • Use several advertising mediums: • Revise web site(2000) • Develop and place advertisements in key trade journals (2001-2002-2003) • Plan and conduct Events • Ground breaking and openings of new businesses (As needed) • Identify co-sponsors for promotion and advertising efforts. See Chart 8 for potential partner list. (2000) Chart 8 Potential Promotion and Advertising Partner List Brokers/Developers Telecom&Utilities Financial Others • Suburban • Great River Energy • First National Bank • Elk River Area Northwest Builders of Elk River Chamber of • • Connexus Energy Commerce • John C.Weicht& • The Bank of Elk Associates—John • Municipal Utilities River Weicht • US West • Rivers Crossing— Gary Santwire • Northstar Access • Riverside • Reliant Energy Companies—Rick Minnegasco Foster • 16 Chart 9 0 Advertising Placement and Schedule 2001 2002 2003 Frequency& Reach Precision Machinery March March March /z page two color May/June May/June May/June $495/insert(8x) July,August July,August July,August Circulation:6,500 job September September September shops in Midwest Nov/Dec Nov/Dec Nov/Dec Business& Industry January January January /z page two color Magazine April April April $1027/insert(6x) June June June Circulation: 14,000 in August August August upper Midwest October October October December December December Twin Cities Business 6(x) 6(x) 6(x) /s page two color Monthly $2,120/inserts(6x) Circulation:32,874 in Twin Cities III III 17 • Public Relations Strategy To create awareness that the City of Elk River is a business-friendly community for light manufacturing firms. Action • Develop a public relations strategy to create an awareness of the City of Elk River and to support long-term indirect selling of the business parks. (2002) • Hire a public relations writer to develop at least three different themes: • Highlighting economic development • Highlighting successful local businesses and, • History and future of Elk River as it relates to business. (2002) Strategic Partnership Strategy To support long-term Economic Development in the area, strategic partnerships are critical to the overall success of the plan. Chart 10 • Strategic Partners Strategic Partnership City of Elk River and Brokers/ Education/ Strategy Government Developers Business Network Improve attractiveness E.Hwy ✓ 10&Central Business District Promote a coordinated Hwy ✓ Hwy 10 Improvement 10 corridor plan Committee,MNDoT Promote Commuter Rail ✓ Northstar Corridor Development Authority Promote all levels of housing ✓ ✓ Provide Training&Education V See Chart 4 Provide technology support ✓ See Chart 4 Provide business and financial ✓ ✓ See Chart 4 resources Assist in Workforce ✓ See Chart 4 Development • 18 • Challenges and Risks Economic Environment It can be expected that the region will have slow-to-moderate business growth. Thus, the plan needs to build on the current industrial base, and business owners currently located in the Twin Cities that desire a location closer to "Up North" with all the city amenities. The regional economy appears to be growing relatively well compared to its northern competitors. However, there is concern that the region is not achieving its share of the new high-tech economy. This is evidenced by • Minnesota's share of the nation's venture capital investment dropping by 50 percent since 1995 • local high-tech firms performing poorly, growing at 50 percent of those in Colorado and Massachusetts and only by 25 percent of their counterparts in California and Texas and, • Minnesota currently ranks 28th in public stock offerings and 34th in new company growth as stated in the Star Tribune article, "Hollow Minnesota, coming too late to the new economy. " • Also, in the past the regional economy significantly benefited from the spin-off companies that evolved from companies like Control Data Corporation and Cray Research. Minnesota continues to see headquartered companies like Honeywell and Norwest depart which also impacts the number of new business spin-offs. Business growth is constrained by the full-employment situation and that there is no in-migration employment. With these unprecedented unemployment rates, employers are having difficulty finding and keeping quality workers. Competition In the short term, Anoka-Ramsey is the most serious competitor of the Highway 10 corridor, which includes the cities of Elk River, Big Lake, and Becker. The competitive I-94 corridor includes the Cities of Rogers, Albertville and Monticello, of which the most critical competitor is the City of Rogers. Long- term competition will most likely come from Otsego and possibly Dayton. It will be necessary to monitor the competition once the City of Elk River launches its plan. It just may motivate the others to become more competitive in the area. • 19 Perseverance& Patience • Location site decision timeframe ranges from three to twenty-four months. g Y The build-out timeframe for both West and East Business Parks is estimated to be at least ten years. It is important that the City, City Council, Economic Development Authority and community understand ❑ The need to maximize the asset value of these parks ❑ The timing of the build-out, and ❑ The need to be patient to selectively, attract high growth, light manufacturing businesses. The City of Elk River is well positioned to be the Northwest metropolitan region's hub for light industrial businesses and capture its share of the business growth. If, and only if, the city implements and manages the plan and is proactively patient for the type of manufacturing growth that will yield the greatest economic multiplier effect on its local economy. Success Measurements To determine the success of the plan,the following management tracking report will be implemented: • The City of Elk River's Economic Development Department will report annually on: • The number of clients assisted and sited • The number of"good to excellent"ratings from clients, and • The amount of private capital investment that the city helped stimulate. Budget Please note Appendix E for estimated annual budgets for 2000, 2001, and 2002. 20 . APPENDIX A Strategic Industrial Marketing Plan City of Elk River Location Site Process Sub-Processes and Primary Responsible Party 1. Industrial Marketing Management(Economic Development) 2. Project Account Management(Economic Development) 3. Site Visit(Economic Development) 4. Proposal Development(Economic Development/Developer) 5. Financial Package Approval (Finance Department/Economic Development Authority/City Council) 6. Site Approval (Site Plan Review Committee/Planning Commission) 7. Building Inspection Approval (Building Department) 8. On-Going Client Relationship (Economic Development) Benefits ✓ Clear roles and responsibilities of process participants ✓ Enhanced understanding of clients needs and requirements . ✓ Enhanced effectiveness and efficiency ✓ Improved results Inputs • Competitive Analysis • Industrial Marketing Plan& Advertising and Promotional Campaigns • New Prospect/Lead o Call from client,broker, or developer o Call from Department of Trade and Economic Development Department, Advantage MN, or other economic development organization o Call from advertising campaign or promotion • Existing business need or issue 1 Location Site Sub-Processes 1. Industrial Marketing Management • Determine sales channels o Mass sales: Web site, Direct mail, Trade Show o Individual sales: Face-to-face sales call, Strategic Alliances, Letter, Trade Show • Identify and select key networks • Manage Industrial Marketing Plan • Manage Advertising and Promotion Campaigns • Schedule monthly meetings with appropriate city departments to discuss and manage economic development projects 2. Project Account Management • Contact made with client contact made • Determine client need (s)by completing questionnaire • • Determine client's timeframe and internal decision-making process (Owner, Plant Manager, CFO, or?) • Clarify client's expectations • Qualify client(s)by completing screening criteria • If client is rejected, refer client to a city that can help them • If client is accepted, enter into the account management system • Prioritize critical issues and develop solutions • Develop account (project)plan with schedule and deliverables • Manage client's account by contacting all appropriate departments and support services (city departments, state and federal agencies, financial resources, legal, and administrative) • Package appropriate information via client's medium (Fax, e-mail,mail) • 2 • • Package final proposal and submit to client and Economic Development Authority (EDA), if appropriate • Submit to City Council for approval, upon EDA's approval, if final proposal requires Tax Increment Financing(TIF) or Tax Rebatement Financing(TRF) • Follow up and satisfy client specifications • Measure success criteria for client satisfaction—timely, full disclosure information,responsive staff, etcetera 3. Site Visit • Select and schedule site visits • Prepare site visit package including maps, specific site information, etc. • Schedule key meetings for clients with city's sales team (local business executives,bankers, and other appropriate members) 4. Proposal Development • Develop proposal with following sections: • Site options and information o Facility Type: Warehouse/Distribution, Manufacturing, Research and Development o Land use regulations, zoning codes,building codes, land use plans • Infrastructure Utility Services o Access to advanced telecommunications systems with sufficient network capacity o Adequate solid and hazardous waste disposal facilities o Adequate water and sewer capacity o Reliable, quality electric service(dual source) o Competitive, stable electric power rates o Competitive, stable gas rates • Availability of Skilled Workers o #s, skilled and semi-skilled, administrative,professional, technical and management • Business Assistance o Sources for capital investment or operating funds o Need for export/international business assistance programs • 0 Need for technology transfer, production processes improvements and operations 3 • • Housing Information o Options, Availability o Brokers and agents' list • Education Information o K-12 Options o Technical Training 5. Financial Package Approval • Economic Development Staff/developer completes application, develops and reviews proposal with Finance Department • Economic Development Staff submits proposal to EDA • EDA reviews client's proposal and application presented by staff o If approves, signs contracts and documents o If rejects, staff submits letter to client with explanation • EDA approves client's proposal and application that requires TIF or TRF and Economic Development Staff presents to City Council o If approves, signs contracts and documents o If disapproves, staff submits letter to client with explanation 6. Site Approval • • Planning Department o Review and determine what process is required for client's plans to comply with the zoning and sub-division regulations. If no special process is required,then o Conduct Site Plan Review Committee meeting (Planning, Engineering, Public Works, Police & Fire Chief, Municipal Utilities) • If yes, approve • If no, disapprove and provide client with instructions on how to meet the city requirements and regulations o If client's plans require special zoning process, assist client through process and submit plan to Planning Commission and City Council for approval. 7. Building Inspection Approval • Building Department o Review and determine if client's construction plans meet city's construction codes • If yes, approve • If no, disapprove and provide client with instructions on how to meet the construction codes i 4 8. On-going Client Relationship • • Celebrate the new business with ap ress conference/ground breaking/grand opening • Conduct annual site visits to "check-in" o Follow-up with issues and concerns Outputs • Proposal • Siting a new business • Updated client records/data base • Understanding of client specific requirements and market intelligence • Economic Development Report to EDA • • 5 IP • • 0 K K (<D ?D j (D p N A 0 , A ET O < U) ((DD OC ((DD (D 3 (n En- �. 3 3 a� 3 ?cQ i -r -1 0 0 0 0 0 < 0 < 0 < 0 < o 0 3 cnO 03 (/) CD 0 0) O O cn (D o g) •° _,,1:1) -0O _ -a O fl' -p O A' -00 0 (fin �- -h3 _3 3 3 3 3 3 3 (• 7 A (D A 7 A j A (D t rt 1 1 1 0 0 i 0 K ro S (.. 0 b (D , o 0 rif 73 p � fp r c 120 -o a <(D0 a- o V n m n0) a) A =« -10 m (D m CD n mlir � 3 0 0 cn — N m w A s" mcm5. _ ( 0A Co on) 3 ' w m 3 N0< m m m ap CD lir + --+__ 1 Wnmm •-< A) 01 0 m = � m0 c (Q o � � o _ o m (L] (D (D (D (D A (D 0 `.< (p 11.1 0 0 ° �� Z et) — )--4 n p Co o D I A (1) CA o 1 � Boas . � V 30a = flU a 0 (n ' O (D d c X CID C19h Ilr u)) •-,:z1 Zli CD c o cc. iii m m : A V : : 0 0 0 0 CD Dal m D (Ia ODm a D ( w 03 o w � 3 o w o 0 -00 A' 03 O w P up oP an -040 0 ma) / mo � (Q3cD w 30 3 < m m < m 0 3 < n o g < 0 0 CD w o m w moo. ? s� -00 m w 0 .111 � o cn o 0 a 13 0 ° 0 0g cc °• o m cc o 0 (n (' �_ (n 0' A I m' 3. m o' 3. h 0 0 - 5 I N . i • • f n . _• -0N W D DT 7 O -D U Aa O (n O co O -D U) < 0 n• m oO� r: W CDD v (D (On D) 7 -I +- a 0 o a < O _ -D CD W ( -O 23 i < O U) CD O fa)0 C. 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Cl)+ o Cl)g APPENDIX B City of Elk River Strategic Industrial Marketing Plan Competitive Analysis Competition is significantly driven by labor force proximity: • Typical 25 mile commute, driving radius of employees (Labor Shortage Market)i.e., Best Buy's decision to locate in Richfield vs. a campus setting somewhere in the Metro area. Retaining its employees drove the decision. • Historical geographic expansion direction from inner city: Minneapolis to Brooklyn Park or Brooklyn Center to Anoka or Blaine for light manufacturing businesses i 1 ona 3 . ora � � a Uw o F+ a 3 � 3 °� 0 „__o & ° oXz. 0 ti ql L A •—. es d adoE (NI = o � lE o, - 1' Fv) U ,mFmU L e ' L 00 Ve „•-N o0 •700.p O0 CC N aw "DNM NN01. o\ e 0 e V m ''7 h W., blL • i = d W W O U• n = W t....; U hW ° . i c 3 z :ho o o'ns• '4041z a ` ? 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U Z j Z b �° a � oZ t-5' o 0 5 Q rx cn .-1 U cn .z cn I— APPENDIX C SWOT Analysis Revised for Strategic Industrial Marketing Plan Strengths ❑ Close proximity between St. Cloud and the Metro area ❑ Access to three major transportation corridors (Hwy 169, Hwy 101 to 94, and Hwy 10), and main line railroad with spur access ❑ Available fair market industrial land ❑ Available: Two Business Parks-approximately 200 developable acres/city owns 20% ❑ Established business incubator ❑ Potential labor pool within Elk River- converting city's commuter pool to jobs within the City ❑ Labor pool within a 20 mile radius of Elk River(Becker, Clear Lake, Milaca, Princeton) ❑ A distinct Downtown to Major retail hub for Cub Foods, Target, Wal-Mart, Home Depot, Menard's • o Full range of city services o Committed progressive leadership ❑ Accessible, well-managed city government o Available Sewer and Water services including growth capacity o Close proximity to construction materials (sand and gravel) ❑ Good K-12 school system o Working relationship between business and Education(Education to Employment Progression Partnership) o Established community that continues to grow o Stop for"Up North" (Strength for retail); Closer proximity to "Up North" for residents vs. the Metro area o Large park system: Youth Athletic Complex,ball/soccer fields, neighborhood parks, • trails, and full range of Youth Activities e.g. Boys and Girls Club A BluePrint For Your Success 1 ...Today and Tomorrow Weaknesses i ❑ Train movement e.g. 55 trains per day ❑ Lack of public transportation e.g. buses or cabs o Lack of a market presence or clear identity for the city ❑ Lack of funding for K-12 school facilities and staffing o Lack of technical skills training especially with Anoka Hennepin Technical School closing o Low labor availability statewide ❑ Industrialbase with no major industrial anchor, e.g. Medtronic's in Fridley ❑ No community center or large meeting facilities ❑ Challenging vehicle movement within the city ❑ Completion of 101 Highway Bridge construction project(2001-2002) • o Lack of spec building space • A BluePrint For Your Success 2 ...Today and Tomorrow Opportunities ❑ Toex osition and and the Energy City designation p p ❑ To obtain the MN Sports Federation sports complex (7 acres) o To add different levels of restaurants ❑ To develop a downtown riverfront, e.g. river walk o To attract current commuter labor force to work in the city ❑ To attract reverse commuter labor force o Attract commuter rail to the city o Develop more open public spaces e.g. public parks and golf courses o Enhance relationships with key state/regional/local economic development associations e.g. Minnesota High Tech Association, Minnesota Technology Inc. and North Metro Mayors Association o Develop industrial marketing programs targeted at key location site decision makers • Threats ❑ Competing incentive packages from other states, counties and cities o Managing growth in the School District IS 728 ❑ Lack of air strip o No entry level housing available ❑ Lack of spec space o Unattractive power lines in downtown and river area o Wild and Scenic River Ordinance limits development and redevelopment efforts • A BluePrint For Your Success 3 ...Today and Tomorrow APPENDIX D City of Elk River Strategic Industrial Marketing Plan Schedule 2000-2002 • 1 lit N S ,#.4- 7 7 11 M 7 O O N N 7 7 : .-•i 7 7 7 7 e kts ri era 7 O. eo 0 la ei N 7 7 7 11 7 7 7 7 M 0 y N 00 7 7 N 0 = O N "0 N Q W cit i14,4 —61_6 cl„ c4 O , O =IN i� o W r rd 0 N 0 Co* cu c4 v) r-. as +., 0 ,Vt .' .' 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'o mix cd ,, O , y 'C3 N N ca o > —i'inn m a) �a? -, ,_ ate' 4 y ° a' t ° .� �, o 0 5 .� ct a 1.0 0 i,::::.,:,., , 7,4 N M ? N M =N �N N N N :gay 9 'fit $5444,4 I � �. 'O ?N 27 N-,'.. N .:' m ti 5 W4444 cz a .444 ':=) rz` O N N ' I ---- 4 I r-, v� O vl O cd CD ct 73 AV bA ;, CIObA O ti x S. ,..00 ••u; 0. � H e-,'-' y 5 ° U '''''• 64 i-1 cu rn tUt CI) V1 O O V1 U 4-'7' x ; coC'i. Wig. O c, mi �. W m *- N tom" e - . c� _ oO ^C3 - ^_ C U C O ''� Q O N •i 5 ` t O ° O SI GJ i-t c� c� �' * 0, cn cn ° N 0.4 N '� O O e N xQwa -0 Alw C� .� �1 C-1wP'"- Gl APPENDIX E City of Elk River Strategic Industrial Marketing Plan Estimated Budget 2000-2002 ID 1 N • N C x N 4v I . 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August 2002 ASSESSMENT TABLE OF CONTENTS . INTRODUCTION 2-3 OBJECTIVE 4 VISION 4 STATEMENT OF PURPOSE 4 MARKET STRATEGY, OBJECTIVES AND POSITIONING 4 KEY SUCCESS FACTORS 4 ASSESSMENT APPROACH 5 2000 - 2002 ENVIRONMENT 5 ASSESSMENT SUMMARY 6 INDUSTRIAL CLIENTS' NEEDS 7 INDUSTRIAL LAND PRODUCT OFFERING 8-9 GENERATED LEVEL OF INTEREST 10-11 INDUSTRIAL DEVELOPMENT RESULTS 12-13 COMPETITIVE ASSESSMENT 13 ADVERTISING CAMPAIGN RESULTS 1415 MARKET EVENTS RESULTS 16-17 KEY ACCOUNT RESULTS 18 STRATEGIC PARTNERSHIP RESULTS 19 CHARTS AND APPENDICES CHART 1 WEST BUSINESS PARK 8 CHART 2 EAST BUSINESS PARK 9 CHART 3 OTHER INDUSTRIAL LAND 9 CHART 4 2000-2002 INQUIRIES AND PIPELINE 10 CHART 5 2000-2002 INDUSTRIAL DEVELOPMENT RESULTS 12 CHART 6 2000-2002 EXPANSION/RETENTION INDUSTRIAL DEVELOPMENT 13 CHART 7 2000-2002 ADVERTISING CAMPAIGN SCHEDULE 15 CHART 8 MARKETING EVENTS SCHEDULE 17 CHART 9 DIRECT MARKETING ACTIVITIES 18 APPENDIX A CLIENT REQUIREMENTS CHART APPENDIX B UPDATED COMPETITIVE MATRIX APPENDIX C INDUSTRIAL LAND AND DEVELOPMENT MAP Introduction • Duckor&Associates,Inc.was hired to conduct an assessment and progress to date on the City of Elk River Strategic Industrial Marketing Plan 2000-2002. The Assessment Plan reflects the findings and information from the interviewees, staff input and working knowledge of the consultant, Duckor & Associates, Inc. One-on-one interviews were conducted with pending clients,clients whom elected another location,business and community leaders,strategic partners and co-sponsors. The primary objectives of the customer research were to: ❑ Reaffirm the customer requirements outlined in the Strategic Industrial Marketing Plan, ❑ Determine customer satisfaction with the City of Elk River's Product Offering— Industrial Land, Design Standards, and Pricing, and ❑ Determine customer satisfaction with the Economic Development materials and Expansion/Siting Process. The Strategic Industrial Marketing Plan 2000-2002 included the following: o - Vision ❑ Statement of Purpose o Value Proposition ❑ Product Offering o Market Strategy, Objectives &Positioning . ❑ Product Delivery Process Strategy ❑ Client Support and Service Strategy ❑ Clients' Needs and Wants ❑ Competitive Assessment ❑ Key Account Relationship and Lead Generation Strategy o Pricing Positioning o Communication Strategy o Promotion & Advertising Strategy o Public Relations Strategy ❑ Strategic Partnership Strategy ❑ Challenges and Risks ❑ Success Measurements o Budget • Duckor&Associates,Inc. 2 A BluePrint for Your Success. . . Today and Tomorrow The Assessment Plan includes the following: • ❑ Assessment Objective ❑ Vision o Statement of Purpose o Market Strategy, Objectives &Positioning o Key Success Factors ❑ Assessment Approach ❑ 2000-2002 Environment ❑ Assessment Summary of Marketing Results o Industrial Clients' Needs o Industrial Land Product Offering o Generated Level of Interest o Industrial Development Results ❑ Competitive Assessment o Advertising Campaign Results o Marketing Events Results ❑ Key Account Results ❑ Strategic Partnership Strategy Results The Assessment Plan focuses on the findings and what sections of the Strategic Industrial Marketing Plan need to be revised which are: ❑ Industrial Clients' Needs o Industrial Land Product Offering o Competitive Strategy • ❑ Promotion and Advertising Strategy o Marketing Strategy o Key Account Strategy o Strategic Partnership Strategy The Assessment Plan reflects the areas of required focus. For example, the Product Delivery Process Strategy was not included in this report because the City of Elk River Siting/Expansion Plan and Process Map addressed this strategy in detail and the Client Support and Service Strategy has been successfully completed. Also,the Communication Strategy was developed in the City of Elk River Communication Strategy and Brand Plan. Duckor&Associates,Inc. 3 A BluePrint for Your Success. . .Today and Tomorrow Objective To review and assess the progress to date of the Strategic Industrial Marketing Plan 2000- 2002 Vision To be the light industrial hub for small to medium-size firms in the northwest metro region. Statement of Purpose of Strategic Industrial Marketing Plan To establish a process that 1. Attracts growth-oriented,light industrial businesses which increases and diversifies the tax base, 2. Complements the existing industrial base, and 3. Guides prospective clients through the entire site selection and development process, which builds long-term relationships. Market Strategy, Objectives & Positioning III ❑ To establish City of Elk River as the hub for light manufacturing firms in the northwest region of the Twin Cities by 2005. ❑ To build-out East and West Business Parks with a range of building sizes that meet the City of Elk River's design standards by 2010. O To target the following Standard Industrial Classification sectors: Industrial Machinery, Fabricated Metal and Electronic Equipment. Key Success Factors • Desire and commitment of the City of Elk River to attract light manufacturing firms • Land acquisition incentives and competitive financial package • Zoning and design standards that are in alignment with the manufacturing industry • Customer-driven professional staff • Strategic location • Perseverance and patience Duckor&Associates,Inc. 4 A BluePrint for Your Success . . .Today and Tomorrow Assessment Approach 11 o Conducted interviews with pending clients,clients whom did not select to site in the City, community and business leaders, strategic partners and co-sponsors. ❑ Conducted discussions with Economic Development staff to determine "what is working and what needs improvement." o Conducted an Industrial Site Tour with Economic Development staff of the competition. o Met with Planning Director and City Administrator to discuss efforts to date. o Conducted a Review and Update with Marketing Committee, and o Reviewed reports and results to date. 2000-2002 Environment o Completed a City of Elk River Communication Strategy and Brand Plan by April 2001. o Completed a City of Elk River Siting Expansion Plan and Process by May 2001. ❑ Complete turnover of Economic Development Staff. • o Expanded work effort for Economic Development Director with the assignment of the Downtown Revitalization project. o Economic Development Director out on approved leave for two and one-half months in 2002. ❑ Some turnover in appointed Planning Commission members and elected Economic Development Authority (EDA) members. ❑ Newly designed Economic Development materials developed and available by Fall 2001. o City of Elk River received negative local TV media coverage and made headlines in the Star Tribune—Red Carpet Inn-Drugs, R. C.Rolloffs-Hazardous Waste Site Issue, and the dedication of the pedestrian bridge over Highway 169, and o 9/11 --slow down of the national economy and the uncertainty of the financial markets. 411 Duckor&Associates,Inc. 5 A BluePrint for Your Success .. . Today and Tomorrow • Assessment Summary of Marketing Results • Generated close to 90 inquires. • Worked with 7 clients,helped developed 208,000 square feet of building space with approximately 60 acres of land sold. • Captured approximately $4.1 million in tax base. • Reached over 75,000 decision makers and/or lead generators with the redesigned Advertising Campaign. • Developed Economic Development communication tools. • Completed Industrial Siting/Expansion Process effort. • Launched key account program. • Participated in key marketing events. • Received a "Somewhat to Very Helpful " rating on the Economic Development communication tools including the Customer Requirement Form and"How To Do Business with the City of Elk River" guide from the interviewees. 1 • Received mixed reviews with the overall Location Siting/Expansion Process effort from the interviewees. In summary, a significant amount of work has been accomplished these past few years to position the City of Elk River for future industrial growth. Duckor&Associates,Inc. 6 A BluePrint for Your Success . . .Today and Tomorrow Industrial Clients Needs i In order to capture industrial development,the City of Elk River must meet all the critical needs of an industrial firm including: ❑ Site that meets the industrial firm's requirements o Financial incentives o Timely, accurate and easy to read information o Clear expectations of process, requirements and timetable ❑ Responsiveness ❑ Ease of doing business with the city o Understanding and consistency of policies and regulations o Prompt and courteous service ❑ Professional treatment • The clients' needs identified in the Strategic Industrial Marketing Plan were reaffirmed by both interviews,field experience and reviewing the competitors'product offerings. Please see Appendix A for the Client Requirements Chart. • Duckor&Associates,Inc. A BluePrint for Your Success. Today and Tomorrow • Industrial Land Product Offering Currently,the City of Elk River offers,via private land owners,industrial land with water and sewer in West Business Park and East Business Park. There is other land zoned for industrial use but does not currently have water and sewer. The following charts depict the park,land ownership,land pricing;total acres available and total acres developed to date. Please note the various landowners,which causes challenges in the siting process and in pricing the product. The pricing ranges from $1.50 to $6 per square foot. Typically,a city owns the land to ensure market based pricing and more importantly be in total control of the development process. For example,the City of Big Lake is selling their industrial land at$1 and the City of Ramsey's industrial land price is from$1.50 to$2.00 per square foot. For additional pricing information,please refer to Appendix B,the Updated Competitive Matrix. Chart 1 West Business Park Development/ Pricing Acres Acres Percentage to Owners Available Developed to be Developed 2001-2002 Date Elk Path $1.50 to 80 0 100% Business $3.00/SF + Center/ Assessments Hoyt Partners Gagne/ $1.50/SF + 18 0 100% Gagne Partners Assessments Country Sold at 14 14 0% Crossing/ $1.15/SF in Emmerich 2000 Country Sold at $1 in 4 4 0% Crossing/ 2000 EDA Country TBD 3 0 100% Crossing/ City TOTAL 119 18 83 To 1110 Duckor&Associates,Inc. 8 A BluePrint for Your Success . . .Today and Tomorrow Chart 2 East Business Park Owners Pricing Acres Acres Percentage to Available Developed to be Developed 2000-2001 Date Mulvaney $4 to $6/SF 20 7 (Sold) 65% Point/ Wald Elk River Build to Suit 32 6 81% Business Park/ Brookstone- Amcon Brown Property TBD 45 0 100% /EDA TOTAL 97 13 87% Chart 3 Other Industrial Land Without Utilities Owners Pricing Acres Acres Percentage to Available Developed to be Developed 2000 Date Cascade $1.90/Sq Ft 46 0- 100% Industrial Park/ Cascade 1 Land Company TOTAL 46 0 100% The Elk River Municipal Utilities estimates that water and sewer services will not be available in this area for twenty years.Therefore this park has very limited development prospects. • Duckor&Associates,Inc. 9 A BIuePrint for Your Success. . .Today and Tomorrow Generated Level of Interest Chart 4 2000 - 2002 Inquiries and Pipeline Results Year Type Inquiry Building and Status Acreage Requirements 2000=" 2001 Commerciale 30 Industrial 45 = 16 - 5 - 12 Lease (Less than Active Space 10,000 SF) Prospects/ - 28 Land/ Delayed Building - 10 Decisions - 5 Other (10,000 to - 2 25,000 SF) Located in Elk River - 13 - 6 (30,000 SF) Located Elsewhere - 6 Other - 32 Ill Other Unknown 2002 (July) Commercial 7 Industrial 16 - 10 Heavy - 3 - 16 Land/ Industrial Active/ Building Delayed - 6 Light Industrial - 2 Located - 2 Elsewhere (10,000 to 25,000 SF) - 1 Unknown - 3 (Over 25,000 to 50,000 SF) - 1 (95,000 SF) • Duckor&Associates,Inc. 10 A BluePrint for Your Success . .. Today and Tomorrow "There was no formal tracking system in place prior to 2001 thus there is no accounting of inquiries in 2000. **The Economic Development Staff referred all commercial inquiries to either the City of Elk River Chamber of Commerce or the Small Business Development Center. The heavy industrial firms were referred to Cascade Industrial Park because their use was not compatible for the business parks. The City of Elk River lost eight potential clients whom elected to site in Anoka,Ramsey,Big Lake, Osseo and St. Cloud. The competitive cities owned the land and offered up-front financing (land for a $1.) Overall interest in the City of Elk River remains relatively strong in light of the slowdown in business and uncertainty in the financial markets. The Economic Development Staff is currently working with eight potential clients. • • Duckor&Associates,Inc. 11 A BluePrint for Your Success . . .Today and Tomorrow • Industrial Development Results Since 2000 approximately 23 acres has been developed for industrial development with approximately 208,000 square footage of building space developed. The development included adding new businesses, retaining businesses and capturing expansions. All the development used one or more financial incentives and added over $4,126,000 million in tax base as illustrated in the chart below. Chart 5 2000 - 2002 Industrial Development Results Year Client/ Purpose Financial Building Land Property Tax Developer Incentives Size Size Base Contribution 2000 SoftPac/Opus New TIF 77,000 SF 14 Acres $1,911,500 Business $700,000 Location 2000 Elk River Spec/Multi TIF 52,000 SF 6 acres $780,600 Business Park Tenant Brookstone/ Amcon 2000 Ripplinger Spec/ $129,050 22,500 SF 1.5 Acres $407,000 f • Multi Tenant for Land, Utility Extension Costs 2000 Norha Spec/ $129,050 22,500 SF 1.5 Acres $407,000 Multi Tenant for Land, Utility Extension Costs 2000 R&W Spec/ $24,638 18,000 SF N/A $366,000 Enterprises/ Multi Tenant TRF Weicht (Tax Rebate) TOTAL 192,000 SF 23 Acres $3,872,100 • Duckor&Associates,Inc. 1 A BluePrint for Your Success. . .Today and Tomorrow Chart 6 • 2000-2002 Expansion/Retention Industrial Development Results Year Client/ Purpose Financial Building Land Property Tax Developer Incentives Size Size Base Contribution 2000 Sportech Expansion Subordinated 10,000 SF N/A $83,700 Micro Loan 2000 Ultra-Image Expansion $50,000 6,000 SF N/A $170,200 Powder Micro Loan Coating 2001 MN Retention $50,000 Not required N/A $366,100 Fabrication& Micro Loan For Machine Machinery Total 16,000 SF $620,000 Please see Appendix C for a color-coded map of the City of Elk River depicting the current industrial parks,future areas for industrial development,development—new,expansion,and retention— from 2000 to date. Competitive Assessment The current key competitors in priority order include Anoka,Ramsey,Big Lake, Osseo, Rogers/Hassen Township and Monticello. Other communities to monitor are Maple Grove, Otsego, Andover, and Dayton. Please note Appendix B for the Updated • Competitive Matrix. Other than Big Lake,the competitors identified in the Strategic Industrial Marketing Plan dropped off including Becker and Albertville. None of these communities were identified in location siting these past two years. It appears the City of Elk River goes head-to-head primarily with Anoka, Ramsey, and Big Lake. • Duckor&Associates,Inc. 13 A BluePrint for Your Success . . .Today and Tomorrow Advertising Campaign Results The Economic Development Department launched the newly designed, theme driven adverting campaign in 2001. The advertising campaign featured the following Elk River's high technology companies: Tescom, Cymbet,Marketech, Sportec and SoftPac. The ads were placed in the Twin Cities Business Monthly,MN Real Estate Journal,MN Real Estate Leasing Guide and Job Shop Technology. Each ad placed included one or two co-sponsors including: Bank of Elk River, Elk River Municipal Utilities,First National Bank of Elk River,Genesis Business Centers,NorthStar Access, Opus and Reliant Energy/Connexus. The co-sponsorships invested$16,430 over the past two years reducing the City's total advertising campaign costs to a total of$69,430. It also provided an advertising opportunity for the co-sponsors. The newly designed advertising campaign has reached over 75,000 business individuals with the message that the City of Elk River is "Open for business and is a place for light manufacturing firms." The campaign reached 4,000 brokers and developers, 12 times in the Minnesota Real Estate Journal—total of 48,000 impressions. The Minnesota Real Estate Journal Leasing Guide reached 5,000 brokers and developers 8 times --total of 20,000 impressions.Job Shop Technology reached 33,000 industries in the Midwest four times— totaling 132,000 impressions. The Twin Cities Business Monthly has reached over 33,000 general businesses in the greater Twin Cities area 6 times—totaling 594,000 impressions. • The number of repetitions of ads for each targeted publication ensured that the target audience received the message. There was no formal tracking of leads from the campaign,so the Economic Development staff does not know with any accuracy if the campaign generated direct leads. The staff does not believe that the print advertising campaign has generated any direct leads. However,the advertising campaign did create the image that the City of Elk River is"Open for Business." The City of Elk River received the best "Local Advertising Campaign" award from the Economic Development Association of Minnesota (EDAM) in June 2002. • Duckor&Associates,Inc. 14 A BluePrint for Your Success . . .Today and Tomorrow S Chart 7 2000 - 2002 Advertising Campaign Schedule Date Placement Circulation/ Outreach 2000 January,March,June,August, Minnesota Real Estate Journal 4,000 September,November Brokers and Developers (Biweekly) February,April,May,July, Twin Cities Business Monthly 33,000 October,December Regional General Businesses (Monthly) 2001 February,May,September, Job Shop Technology 33,000 October Industry organizations(Quarterly) March,April,June,July, Minnesota Real Estate Journal 4,000 September, October Brokers and Developers (Biweekly) February/March,May/June, Minnesota Real Estate Journal 5,000 August/September, Leasing Guide Brokers and Developers October/December (Quarterly) May,June,July, September, Twin Cities Business Monthly 33,000 October,December Regional General Businesses (Monthly) 2002 March,April,June,July, Minnesota Real Estate Journal 4,000 Brokers and Developers II/ September,October (Biweekly) February/March,May/June, Minnesota Real Estate Journal 5,000 August/September, Leasing Guide Brokers and Developers October/December (Quarterly) February,May,June,September, Twin Cities Business Monthly 33,000 October,December Regional General Businesses (Monthly) Total campaign impressions are as follows: • Job Shop Technology- 132,000 • Minnesota Real Estate Journal - 48,000 • Minnesota Real Estate Journal Leasing Guide -20,000 • Twin Cities Business Monthly- 594,000 • Duckor&Associates,Inc. 15 A BluePrint for Your Success. . Today and Tomorrow • Marketing Events' Results In October 2000, participated with the MN Department of Economic Development in recognition of MN Manufacturing&Technology Month including a site tour of Aggregate Industries, an Elk River concrete block plant, sponsored by the EDA. The City of Elk River developed an attractive marketing exhibit/booth that was used at two events in 2001—the Minnesota Real Estate Journal (MRJE) Site Selection Conference and the Minnesota Manufacturing&Technology Month luncheon event. In May 2001, co-sponsored the Sherburne County Real Estate Broker/Developer Event held in City of Big Lake with over 50 attendees. In October 2001, co-sponsored the MREJ Site Selection Conference with over 250 attendees. The Economic Development director participated on a panel " Municipal and Business Park Marketing Plans and Incentives." The City of Elk River also had a booth at the conference held at the University of St. Thomas, Minneapolis campus. In October 2001,participated with the MN Department of Economic Development in the recognition of MN Manufacturing&Technology Month.Co-sponsored a luncheon with the EDA and the Chamber of Commerce. Rick Speckmann,President of Amcon Construction, was the featured speaker.Tours were offered at three local manufacturers:E&0 Tool and • Plastics, Tescom Corporation, and Sportech. Over 20 local businesses attended. • Duckor&Associates,Inc. 16 A BluePrint for Your Success Today and Tomorrow • Chart 8 • Marketing Events Participation Schedule Date Event Results October 2000 MN Manufacturing&Technology 13 Attendees Month (Local Business Owners) Conducted local tour June 2000 Economic Development 200 Attendees Association of Minnesota (EDAM) conference (Economic Development Professionals and Brokers/Developers) May 2001 Sherburne County Real Estate 50 Attendees Broker/Developer Event (Real Estate/Developers) June 2001 Economic Development 200 Attendees Association of Minnesota (EDAM) conference (Economic Development Professionals and Brokers/Developers) October 2001 MN Manufacturing&Technology 20 Attendees Month (Local Businesses) Conducted local tour Luncheon Co-sponsorship with EDA and Chamber of Commerce • October 2001 Minnesota Real Estate Journal " 250 Attendees Site Selection&Economic (Brokers,Developers and Property Development Conference" Managers) Minneapolis,MN Co-sponsorship June 2002 Economic Development 200 Attendees Association of Minnesota (EDAM) conference (Economic Development) Professionals and Brokers/Developers) October 2002 MN Manufacturing&Technology Month TBD October 2002 Minnesota Real Estate Journal " Site Selection&Economic TBD Development Conference" 5• • Duckor&Associates,Inc. 17 A BluePrint for Your Success. ..Today and Tomorrow • Key Account Results The Economic Development staff launched a formal key account program in late 2000 focusing on the following organizations: Colliers-Towle, CRESA Partners, Cushman & Wakefield, Duke-Weeks Realty, Kraus-Anderson, Northco, Opus Northwest, Ryan Companies, United Properties and Welsh Companies. After sending the mailings,the Economic Development staff followed up with telephone calls to ensure the key accounts received the materials and to answer any questions. No direct one-on-one key account meetings were held. The staff distributed five complimentary guest passes for the MREJ conference in 2001 to five of the key accounts--Colliers-Towles,CRESA Partners,Cushman&Wakefield,Opus, and Welsh Companies. Chart 9 Direct Marketing Activities Date Direct Mail Customer Segment/#'s December 2000 - Holiday Greeting 10 key accounts January 2001 - Introduction letter with 10 key accounts Business Park maps including "Business&Industry"article June 2001 - Economic Development 10 key accounts communication materials December 2001 - Holiday Greeting 10 key accounts - Economic Development communication materials January 2002 - No activity to date • Duckor&Associates,Inc. 18 A BluePrint for Your Success . . .Today and Tomorrow Strategic Partnership Strategy Results The City of Elk River Strategic Industrial Marketing Plan 2000-2002 identified the following partnership strategies to ensure long-term economic development growth: ❑ Improve the attractiveness of the E. Highway 10 and central business district, o Promote a coordinated Highway 10 corridor plan, o Promote Commuter Rail, o Promote all levels of Housing, and ❑ Support Training and Education. The City's Housing Redevelopment Authority (HRA) initiated Requests for Proposals (RFP's) from developers for the Downtown Revitalization Project in March 2002. A developer will be selected in August on the basis of experience with similar projects, the overall quality of their proposals, their architectural intent and demonstrated interest. In 2001,the HRA supported a sidewalk replacement project throughout the central business district. New trees, flowerpots and trash receptacles were also added to improve the attractiveness of the area. The City hasbeen involved • with the Northstar Commuter Rail Corridor project since 1997. From a planning perspective,the Senior Planner has been the primary contact person for the City. The Mayor has actively promoted the project at the Legislature. The City also contributed to the "Quality of Life" investing $565,000 to save the "Little Theater" at the high school. The theater will be used by local art groups for a variety of performance opportunities and provides a second performing arts space when the new auditorium is booked for school functions. The Central Minnesota Housing Partnership reviewed and analyzed the City's housing needs. The study identified that the City needed a wide range of housing levels and types. The Minnesota Technology, Inc. "Our Competitive Nature:Minnesota's Technology Economy," June 2002 report, identifies what it takes for a state to be a technology- supportive state—which supports manufacturing firms,dot-coms,telecoms and bio-medical tech firms. The report identifies the need for continued long-term investments to support a future technology infrastructure including K-12 education and higher education,regional research and development capacity,transportation and quality of life. Thus supporting the need for the City of Elk River to be a strategic partner for K-12,transportation, housing issues and community amenities that enhance the quality of life to support local economic development. • Duckor&Associates,Inc. 19 A BluePrint for Your Success. ..Today and Tomorrow • ACTION PLAN TABLE OF CONTENTS INTRODUCTION 2 MARKET STRATEGY,OBJECTIVES&POSITIONING 3 PRODUCT OFFERING, ANALYSIS AND ACTION 3-5 COMPETITIVE STRATEGY,ANALYSIS AND ACTION 6 KEY ACCOUNT AND LEAD GENERATION STRATEGY, ANALYSIS AND ACTION 7 PROMOTION AND ADVERTISING STRATEGY, ANALYSIS AND ACTION 8 PUBLIC RELATIONS STRATEGY, ANALYSIS AND ACTION 9 STRATEGIC PARTNERSHIP STRATEGY, ANALYSIS AND ACTION 10 BUSINESS RETENTION STRATEGY,ANALYSIS AND ACTION 11 • • Introduction • The three-year Action Plan reflects the findings and information from the interviewees,staff input and working knowledge of the consultant,Duckor&Associates,Inc. The Action Plan also reflects the feedback and suggestions from the Marketing Committee. One-on-one interviews were conducted with pending clients,clients whom elected another location,community and business leaders,strategic partners,and co-sponsors.The primary objectives of the customer research were to: o Reaffirm the customer requirements outlined in the Strategic Industrial Marketing Plan, o Determine customer satisfaction with the City of Elk River's Product Offering— Industrial Land, Design Standards,a ds and Pricing, and d o Determine customer satisfaction with the Economic Development materials and Expansion/Siting Process. The most important strategies and respective action steps are: o Alignment of the City of Elk River's product offering (industrial land, design standards, and pricing), o Implementation of a pro-active key account strategy, • o Implementation of a public relations strategy, and o Implementation of a business retention strategy. The strategies identified in the City of Elk River Strategic Industrial Marketing Plan 2000- 2002 remain relevant.The Action Plan identifies the Strategy,Analysis and Action Steps for the following: • Product Offering, • Competitive Strategy, • Key Account and Lead Generation Strategy, • Promotion and Advertising Strategy, • Strategic Partnership Strategy, and • Business Retention Strategy. Please note the Action Plan has added a Business Retention Strategy that was not included in the City of Elk River Strategic Industrial Marketing Plan 2000-2002. At this time, it is important to align all the economic development strategies— retention, expansion and recruitment. Also,Duckor&Associates,Inc.acknowledges the Action Plan is a very ambitious plan that may take more than three years to accomplish. The Economic Development staff now has for both industrial development and the Downtown Revitalization Project. •responsibilities Duckor&Associates,Inc. 2 A BluePrint for Your Success. . .Today and Tomorrow 11) Market Strategy, Objectives Objectives & Positioning o To establish City of Elk River as the hub for light manufacturing firms in the northwest metro region of the Twin Cities by 2005. o To build out East and West Business Parks with a range of building sizes that meets the City of Elk River's design standards by 2010. ❑ To target the following Standard Industrial Classification sectors: Industrial Machinery, Fabricated Metal and Electronic Equipment. City of Elk River's Product Offering o Confidential Location Site Services o Information and knowledge of state, regional and local products and services that help an industrial client locate, grow and prosper. ❑ Available Industrial Land • 0 Land Acquisition Incentives ❑ Tax Increment Financing ❑ Tax Rebate Financing o Micro Loan Fund Analysis There appears to be confusion in the marketplace if the City truly desires industrial development. The current design standards are not written specifically for industrial development including design standards that small industrial companies can build to or willing to invest at. Also,calling the two parks East Business Park and West Business Park does not directly say to the target market,they are welcomed or if industrial firms will be compatible. For example, a small industrial client typically needs no more than 1.5 to 3 acres and a broader range of more economical building materials. There typically is not a standard industrial building style because it depends on the operating functions that are required within the building. However, small to medium-size industrial companies typically need heavy power and reliability,water capacity,heavy floor loads,no height restrictions,storage of flammable or hazardous materials and no restrictions on hours of operations. They may need to operate three shifts. • Duckor&Associates, Inc. 3 A BluePrint for Your Success. ..Today and Tomorrow • The City of Elk River Strategic Industrial Marketing Plan must be both understood and • agreed to by the City Administration,City Council and all City Commissions. There appears to be a lack of understanding of the customer requirements and needs of light manufacturing/industrial firms by the Planning Commission. There must be an alignment between the customer requirements(for light manufacturing/industrial firms)and the City's Product Offering. The City of Elk River is at a distinct competitive disadvantage with both business parks because it does not own the land directly and multiple owners own the land. This causes the process to take longer because of the private land pricing and negotiations. Also,this limits the City of Elk River's capability to close the deal compared to its competition.As planned in the Strategic Industrial Marketing Plan,joint-marketing agreements would be obtained with the landowners to avoid this issue. However,the joint-marketing agreements were not obtained because landowners did not perceive any value. Without signed contracts with landowners for initial marketing,sale and development,that include a price for the land,it is impossible for the City to know what the land offering is for the client. Therefore, it is difficult for the City simply to provide a seamless process for the client nor does it look like the City is knowledgeable about their product offering. It is critical that the City is able to move quickly and also be in the lead of the siting process. In addition,the key competitors are offering"Up-front"financing(land for$1)for industrial development in their respective cities. The "Up-front" financing is attractive to industrial • firms because it reduces the initial capital outlay. The City of Elk River's"Pay As You Go" financing is a distinct competitive disadvantage and limits the amount of industrial development the City can capture compared to its competitors. Action Education and Strategy Alignment with Policy Makers o Duckor & Associates, Inc. to debrief the Planning Commission on Industrial Development and Clients' Requirements. (Fall 2002) ❑ Conduct a joint site tour with both the Economic Development Authority(EDA) and Planning Commission and visit competitive industrial parks in Anoka,Ramsey, Rogers, and Big Lake. (Fall 2002) o Expand knowledge and understanding of state, regional and local Economic Development tools to assist industrial clients to grow and prosper. (On-going) o Expand and develop working knowledge of staff,EDA and Planning Commission, about the industry and business information in the targeted sectors: Industrial Machinery, Fabricated Metal and Electronic Equipment by monitoring industry magazines, etc. (On-going) • Duckor&Associates,Inc. 4 A BluePrint for Your Success. . .Today and Tomorrow • Industrial Land Development ❑ Dedicate city-owned land with utilities for industrial development and name it Elk River Industrial Park,and pursue purchasing additional city owned properties. (Fall- Winter 2002-2003) ❑ Or,dedicate one of the current business parks to industrial development if the land- owners are willing to sign the joint marketing agreements,and name it accordingly e.g., Elk River Industrial Park. (Fall-Winter 2002 -2003) ❑ Analyze and redraft the ordinance standards to better meet the industrial clients' requirements regarding Design Standards. (Fall-Winter 2002-2003) ❑ Revisit and revise,as appropriate,the "Park Dedication Fees" for industrial clients e.g., $2,000 per acre. (Fall-Winter 2002-2003) ❑ Develop and pay for attractive signage for the dedicated Elk River Industrial Park. (Winter 2003) ❑ Revise Marketing Objectives as appropriate. (Fall-Winter 2002-2003) Financial Incentives ❑ Offer"Up-front" financing to qualified industrial firms to meet the competition's financial offerings. (Fall-Winter 2002-2003) Location Site Process Improvements ❑ Duckor&Associates,Inc.to conduct a 1/2 day working session with all appropriate S City of Elk River staff members to review and improve, if required, the Siting/Expansion Process. (2003) ❑ Duckor &Associates, Inc. to draft a customer satisfaction survey. Solicit client feedback on the Location Site process by sending the survey and requesting the interviewee return survey to the City Administrator. (15 days after completion of Location Site Process services, On-going) ❑ Conduct monthly scheduled Siting/Expansion Team meetings to review status of projects. (On-going) Duckor&Associates, Inc. 5 A BluePrint for Your Success. . .Today and Tomorrow Competitive Strategy • Analysis The current key competitors in priority order include Anoka, Ramsey,Big Lake, Osseo, Rogers/Hassen Township and Monticello. Other communities to monitor are Maple Grove, Otsego,Andover,and Dayton. Please note Appendix B for updated Competitive Matrix. Other than Big Lake,the other competitors identified in the Strategic Industrial Marketing Plan dropped off including Becker and Albertville. None of these communities were on the list of clients siting these past two years.It appears the City of Elk River primarily goes head- to-head with Anoka, Ramsey, and Big Lake. Action Competition Tracking o Collect and maintain current information on key competitive communities including land price, available land with utilities, local incentives, marketing and tag lines. (December 2002, annually) o Add new communities to Competitors List when a current client or broker/developer identify them. (On-going) • • Duckor&Associates,Inc. 6 A BluePrint for Your Success. . .Today and Tomorrow • Key. -Account and Lead Generation Strategy To establish the City ofElkRiveras theplace to site light-manufacturingfirm with economic development key influencers, leaders and providers. Analysis The Economic Development staff launched a direct mail Key Account program with 10 key accounts—real estate brokers and developers. However, the staff needs to develop a one- on-one relationship and effectively utilize other key community and business leaders in the process. This is one of the most important strategies and the outreach effort needs to be focused, expanded, and accountable. Economic Development is a people driven business and is highly reliant on networks— knowing the lead generators and influencers are extremely important. Establishing confidence with this group that the City is "open for business and is an easy city to do business with" is vital to the City's industrial growth. The City of Elk River needs to establish a"Champion" for promoting the City as a place for light industrial firms. The job and the responsibility of the"Champion"needs to include the Economic Development staff, select business leaders and the EDA. Action Key Account Program o Ensure that all industrial inquiries are submitted to the Economic Development staff including leads from the Chamber of Commerce, Elk River Municipal Utilities, local banks, etc. (On-going) ❑ Maintain the current 10 accounts and add five additional key accounts. (Fall 2002) o Review key account list and add local banks as active key accounts. (Fall 2002) ❑ Request President of the EDA to be part of a joint sales team and assign five accounts jointly. Economic Development Director to take the lead. (On-going) ❑ Utilize other appropriate business leaders as part of the Key Account Team, as appropriate. (On-going) ❑ Develop key account sales plans including a schedule for each account. (On-going) o Assign Economic Development Assistant the Manufacturing&Trade Associations and Department of Trade and Economic Development accounts. (August 2002) ❑ Meet one-on-one with key accounts at least three times annually and maintain contact by telephone, e-mail,or communication materials bi-monthly. (On-going) ❑ Keep track of account interactions by project management software. (On-going) ❑ Present status of key accounts within the monthly report to the EDA. (Monthly) ❑ Expand new key accounts annually. (2003, 2004) • Duckor&Associates,Inc. 7 A BluePrint for Your Success . . .Today and Tomorrow • Promotion & Advertising Strategy • To promote that the City is "Open For Business"and to generate leads for the East and West Business Parks. Analysis The City conducted a print advertising campaign for over ten years. The last few years the campaign was focused with a consistent theme,key messages and design format. Although the campaign appears not to have generated any direct leads, it established the City as a player in the Economic Development field. In light of the investments over the years and the lack of direct leads, a more targeted, fine-tuned advertising effort should be pursued. The recommendation is to reduce the investment in print advertising campaign and to expand the direct mail strategy,review and effectively redesign the web site, and launch a Public Relations Strategy. Action Inquiry Tracking o Track all inquires and determine how they heard about the City of Elk River e.g., referral, ad, web site, direct mail. (August 2002, On-going) o Establish a database of all-industrial inquiries and leads. (August 2002, On-going) o Develop a direct mail campaign,e.g.,mail a newsletter or update,two or three times . a year, to the database including real estate brokers, developers and clients. (September 2002, On-going) Advertising and Marketing Support o Review and redesign Economic Development web site. (Fall 2002) o Place 1/4 page print ads building on the theme, format and focus of the current campaign in The Business Journal and the Minnesota Real Estate Journal and Leasing Guide. (2003, 2004) o Continue to support and participate in Marketing Events,e.g.,MN Department of Economic Development in recognition of MN Manufacturing&Technology Month and Minnesota Real Estate Journal "Site Selection & Economic Development Conference. (On-going) Strategy o Adopt a new Promotion and Advertising Strategy—To promote the City is "Open For Business" and to generate leads for the Elk River Industrial Park. • Duckor&Associates,Inc. 8 A BluePrint for Your Success . ..Today and Tomorrow • Public Relations Strategy To create awareness that the City ofElkRiver is a businessfriendly riendly community forlight manufacturing firms. Analysis The City of Elk River initiated a public relations program as recommended in the Strategic Industrial Marketing Plan with the quarterly article featuring Elk River in the MREJ Leasing Guide in 2001. However, there were no more public relations stories written or placed. Economic Development staff needs to enhance the investment in a public relations strategy that will not only create awareness of the City of Elk River but hopefully,will counter some of the negative press the City has received over these past several years. Action Public Relations Campaign ❑ Hire a public relations writer/consultant. (Fall 2002) o Develop at least three different themes including highlighting economic development,successful local businesses and the history and future of Elk River as it relates to business. (Fall 2002) o Leverage the "Energy City" connection, if appropriate. (On-going) ❑ Place articles in appropriate newspapers, business and trade journals. (On-going) ❑ Place print ads and stories acknowledging completed projects. (On-going) Duckor&Associates, Inc. 9 A BluePrint for Your Success. . .Today and Tomorrow • 410 Strategic Partnership Strategy To establish strategic partnerships to support long-term Economic Development in the area. Analysis The City of Elk River Strategic Industrial Marketing Plan 2000-2002 identified the following partnership strategies to ensure long term economic development growth: ❑ Improve the attractiveness of the E. Highway 10 and central business district, ❑ Promote a coordinated Highway 10 corridor plan, ❑ Promote Commuter Rail, o Promote all levels of Housing, and ❑ Support Training and Education. Action Policy Making o Duckor & Associates, Inc. to facilitate a two-hour meeting among the EDA Commission,staff,business community leaders,Chamber of Commerce President • and the School District Superintendent and appropriate staff of the School District. Ms. Duckor to present workforce challenges raised by business and education leaders in the Twin Cities Metro area. (2003) ❑ Recommend that the Elk River School Board establish a formal business advisory committee reporting to the Board so the "business voice" can be heard on an on- going basis. (2003) ❑ Support the bonding bill for the Northstar Commuter Project at the Minnesota Legislature. (Fall 2002 and Legislative Session 2003) ❑ Continue to support the Downtown Revitalization Project. (On-going) o Conduct a more detailed housing stock analysis with GIS to determine housing needs for the City. (Winter 2003) • Duckor&Associates, Inc. 10 A BluePrint for Your Success . . . Today and Tomorrow Business Retention Strategy To retain and expand the current industrial base in the City of Elk River Analysis The City of Elk River Strategic Industrial Marketing Plan 2000-2002 did not include a Business Retention Strategy. However,it is important to align all the economic development strategies— retention, expansion and recruitment. The City of Elk River's local industrial firms play a critical role as ambassadors for industrial development. There needs to be a focus on addressing any issues facing this sector. And, the City needs to'demonstrate the importance and value the industrial firms contribute to the City. Action Relationship Building o Place an ad in the local paper acknowledging the importance and value by listing all local firms during the month of October—MN Manufacturing & Technology Month. (September 2002) o Develop a public relations article talking about the value,purpose and benefits of the manufacturing sector for a community (September 2002) o Demonstrate the importance and value by focusing on the key thought leaders of the industrial firms in the Public Relations Program. (On-going) ❑ Develop and send a "Thank You" letter to all local industrial firms signed by the Mayor and the EDA Commissioners. (September 2002) ❑ Conduct one-on-one breakfast/luncheon meetings with local manufacturers to discuss their issues. Appropriate EDA Commissioners and staff in attendance. (On- going) ❑ Hold off on conducting any more formal Business Retention and Expansion surveys. (On-going) Duckor&Associates,Inc. 11 A BluePrint for Your Success . . .Today and Tomorrow • Appendix A Client Requirements Chart Client Requirements Client Drivers Client Value (Benefits) REAL �A Site Needs • Space Availability Need to locate/relocate immediately Ability to locate now • Lease • Build/Own Need to reduce business costs Reduce capital requirements • Purchase Existing Desire to build own building Offers flexibility and ability to customize Facility Needs building • Bulk storage • Warehouse • Light manufacturing with office space Expansion Options - _ Need to expand with business growth Expand at same site without a costly move • Availability • Cost of Suitable Sites Site Needs: • Size of parcel Meet current&future building demands Operate efficiently&cost effectively • Configuration of land cost effectively and predictability. • Type of facility • Environmental factors • Price • Rail spur access Price Need additional$$to reduce upfront Use$$for business results • Free Land • investment • Market rate FiNANCI ,INCEN TIVESz x41**, s O F „ . 3 ._ �E .,� W.,: .,, _ . Tax Increment Financing(TIF)/Tax Need$$to assist with reducing project cash Able to use$$for business results Abatement flow (Pay as you go) TIF Need up front financing to reduce project Reduces debt service (Upfront/Bonds) cost TIF Land Contribution Reduce upfront costs and provide equity Ability to put more$$into business Loans Gap financing,reduced cost of money Ability to acquire more funds for project •CITY SamCFS.AN C®STS R sj r Low property taxes Reduce business costs Use$$for business results Special Infrastructure Needs: Electric,Gas, Special production requirements or Reliability and Capacity for production• Communications,Water&Sewer communication linkages Availability,Reliability&Cost Timely and accurate information Need to know information to make a well Avoid wasting time and$$ informed decision _ Ease of doing business with the city Don't want to waste time or energy on Know that business is wanted and zoning,or other permit issues appreciated in the community M Duckor&Associates,Inc. A BluePrint for Your Success . . . Today and Tomorrow • Client Requirements Chart (continued) � ) Client Requirements Client Drivers Client Value (Benefits) Proximity to St.Cloud/Metro Close proximity urban centers Reduce business costs Access to: Easy and affordable access to vendors, Reduce business costs • Suppliers suppliers,and customers • Support services • Raw materials • Customers • Vendors Transportation: Need access to major international airport Reduce staff traveling time and • Highway for national and international markets transportation costs and transport product • Rail more quickly • Air Industry Compatibility Desire to fit in and avoid conflict Be a good neighbor and community partner Labor Force: Number,quality,skill and • wage level • Highly skilled Availability Production&profit • Semi-skilled • Unskilled • Clerical • Professional/Technical • Managerial £Di Ck ON/}IOUSTNGJB[.ISINE $ TFrWORK $. 3;v:': Education Need a good education system available for Well educated children • K-12 my employees and my children. • Technical training Need to continue to train my employees. Well trained employees Housing Needs:Current Stock Availability& Want to have executive and affordable Choice at all housing levels Price Levels housing options Institutional Support&Network Need for business formation,support and General business and R&D Support, technology development support Training$,to help my business be successful • • Duckor&Associates,Inc. A BluePrint for Your Success. . . 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' t MIN 4.. S%.,,- O 0. 1.4 n'gfkki, '%•.1.'ain't III ,,,0,44:4-0.:44.-,..4,...7.1,4:7,:::,,..:t,-,,::,•,:;:.,...,..„ , • , : .:,...„:..7.1.,.. . t . ...,.4.,.....,_ r,:h.,,.:::::.., "..civoitt 0 :.„.,110.44 , N . , 4movii AtpifiAN SWIM tr ii o ,,, ,, ,,, , ,, o a o g O okvifilwiagar 0 - .,.!...::•41,4,1 cl., .- 0 .., ! 74, 4: d tan N D Vat'MI 175 • 1/ City of Elk River City of Elk River Strategic Industrial Marketing Plan Assessment and Action 2002-2004 Plan • Economic Development Authority Presentation Anita S.Duckor President Duckor&Associates,Inc. August 19,2002 Agenda • Assessment Purpose • Approach • Success Factors • Vision • Clients'Requirements • Product Offering • Strategies and Action Steps • Investment • Benefits • Next Steps • 1 • Assessment Purpose Assessment Purpose • Conduct an Assessment and Progress to Date of the Strategic Industrial Marketing Plan 2000-2002 • • Offer Recommendations for Improvement • Identify Next Steps Approach 2 • Approach • Reviewed Strategic Industrial Marketing Plan and other reports with Economic Development Staff • Updated Competitive Analysis and toured competitive industrial parks • Interviewed pending clients,clients whom elected not to site in Elk River,business and community leaders, strategic partners,and co-sponsors • Reviewed with Marketing Committee the findings and recommendations • Success Factors Success Factors • Desire and commitment of the City to attract light manufacturing finns • Land acquisition and competitive financial package • Zoning and design standards that are in alignment with light manufacturing industry • Customer-driven professional staff • Strategic location • Perseverance and pro-active patience • 3 • Vision • Vision To be the light industrial hub for small to medium-size firms in the northwest metro region • Statement of Purpose • 4 • Statement of Purpose • Attract growth-oriented,light industrial businesses which increases and diversifies the tax base • Complement the existing industrial base • Guide prospective clients through the entire site selection and development process,which builds long-temp relationships Product Offering Product Offering • Available land • Comprehensive financial package • Confidential location site services • Full city services and amenities • Professional staff and process • Information on state,regional,local products and services • Strategic location • 5 • Marketing Objectives • To establish City of Elk River as the hub for light manufacturing firms in the northwest region by 2005 • To build-out East and West Business Parks by 2010 Marketing Results i To Date Marketing Results To Date • Generated almost 90 inquires • Worked with 7 clients • Helped develop 208,000 square feet of building space and 60 acres of land sold • Captured$4.1 million in tax base • Reached over 75,000 business decision makers • Established the City of Elk River as a player in Economic Development • 6 Marketing Results To Date(coned) • Launched Key Account Program • Participated in key marketing events • Developed Economic Development materials • Received"Good Marks"for Economic Development materials • Completed Industrial Siting/Expansion Process effort • Received"Mixed Marks"for delivery of Siting/Expansion Services Industrial Clients' Needs Industrial Clients'Needs • Site that meets the industrial firm's requirements • Financial incentives • Timely,accurate and easy to read information • Clear expectations of process,requirements and timetable • Responsiveness • Ease of doing business with the City • Understanding and consistency of policies and regulations • Prompt and courteous service • Professional treatment • 7 • Strategies & Key Actions Most Important Strategies Product Offering,Key Account,Promotion and Advertising, Public Relations,Strategic Partnerships and Business Retention Key Actions • ths..rsoduct OfferingelndAstrial,Land; Design tan ards, d Pricing) s • 'Emma and implement a pro-active Key Account Program' • Implement a Public Relations Program • Build on the Strategic Partnerships • Implement a pro-active Business Retention Strategy and Program Product Offering Strategy To align the Prodith Offeringavftlretr is'Needs and The Market ey Actions • Align Industrial Develo t Policy with Policymakers • edindurr?1 Land w,th Clients Req irements Di =kedraft the Ordinance Standards to meet Client's' , Requirements • Offer"Up-front"financing for qualified clients • Review and improve Siting/Expansion Process • • 8 • Key Account Relationship&Lead Generation Strategy To establish the City of Elk River as the place to site light-manufacturing firms with economic development key influencers,leaders and providers Key Actions • Expand Key Account Program • Establish a"Champion"for promoting the City ,ED an. ess leaders) • Establish a Key Account Team approa Promotion&Advertising Strategy To promote that the city is"Open for Business" Key Actions • Update and redesign web site • Continue Advertising Campaign -The Business Journal Minnesota Real Estate Journal and Leasing Guide • Develop a DirectMail Cam r key a pts • Track all inquiries to measure program's effectiveness Public Relations Strategy To increase awareness that the City of Elk River is a business friendly community Key Actions • Hire a public relations writer • Develop and place public relations articles • Place print ads and stories acknowledging completed projects • 9 • Strategic Partnership Strategy To ensure long-term economic growth,strategic partnerships are critical Key Actions • Sponsor a meeting with the School District,business community and policy makers to discuss how education and business development are interrelated • Support Downtown Revitalization Project • Support bonding bill for the Northstar Commuter Project • Conduct a detailed Housing Stock Analysis Business Retention Strategy To retain and expand the current industrial base in the City • Key Actions • Acknowledge local firms importance and value via ads and public relations stories • Send a personal"Thank You"letter signed by the Mayor and the EDA • Conduct one-on-one meetings with local manufacturers • Support MN Manufacturing&Technology Month Measurement Measure the success of the plan Key Actions • Implement a management tracking report • Measure success by -#of clients assisted -#of clients sited -#of"good to excellent"ratings by clients -Amount of private capital invested by clients • 10 • Investment Investment in Development • City-Owned Industrial Park • New Web Site Design • Signage for Industrial Park • Account Management Software • • Public Relations Campaign Tool • Inter-department Industrial • Advertising Campaign Siting/Expansion Process Review Benefits 11 • Benefits • Increase and diversify the tax base • Enhance retention,expansion and new growth opportunities • Enhance understanding of clients and requirements • Build long-term client relationships 410 Next Steps 1110 12 Data Bank Page D4 41/. ,..._, i rw startribune.c0 orn/businesst su struggle. burbs �tc'aCTI' bunethe southwes y,August 19,2002•Seco --ittzIR 1 Go-go business ' Ac blue-collar Blaine and its northern neighbors chu,g along Airlines m = '.. . , Monday' struggling,b airport n tem is grownshu Turn to D5. Old, reliable busin. . esses Investors still p give a boost to the north out of equity fu ▪ By Larry Werner laid waste to New Economy dot corns Stocks hat _ �, 8 �� Star Tribune Staff Writer and telecoms,leaving buildings emptyrecovering fl �� Tk� a fx� and tech workers jobless in the south. ly s Sell Off f i � �.fid £ ;� t In the family of Twin Cities suburbs, The Golden Triangle, littered with many lnvest( " ,,z 4 • v ?> the favored child has been the south for lease signs and empty buildings fes€ r } � � �r' west metro — with its hi h incomes, on Eden Prairie's lush terrain,has lost Still shy of th �'` 1 € � � � � i,*}� highways and high tech symbolized its gleam. Meanwhile, Medtronic's ket• r � p � � W in recent years by Eden Prairie's Gold castle-like headquarters in Fridley and Investois i i }� E p 2 4� r; 1 en Triangle business park. upper bracket housing adjacent to drew a net$' J The northern suburbs,meanwhile, Blaine s Tournament Players Club a f _ lion from eqi have grumbled that they are treated as (TPC) Golf Course are symbols of a �l ' neglected stepchildren by legislators, new, shinier image for communities funds in the ��.,r ��iS' t'+c z � n�a 9+m z<P} *a. .s� w'rri#s rkrr«v.x3a.•. ft"k _ b Y b b .�� € { governors and developers who have north of the Twin Cities. ended last VV • e ' '� - ignored the blue-collar north while si a ¢ da ,accordil f tendin to the needs and wants of of SUBURBS continues on D2 y g AMG Data St g � � fluent communities such as Edina, Eden Prairie More thar. � � b� �s � 3 a and the fast-growing Industrial vacancies percentofth '''''-'1:4'44;'-''''1';I:. '''''.:1;-'''4'''''-`1''';''''::' `.Y"s'*y*4 r ra:5 • '''u-�,'.' n �' i#�."rro pfr,+�K • r-..,,.. citiesBut of whining tt Coun 1 wax" �' The vacancy rates for the industrial space with sub } {` ��. a from the outflows can ri d }fi leases in the southwest and northeast Twin Cities. • �� s x northeastern suburbs is from domesi xr• { � TAt'• waning, in part because 20% z€t e,> 17 uity funds, � � r �� new highways,newhous 4 down frnn11 } '.�-� t 3 1 h � _ ing and new retail Bevel 15 � �' � � t opments have eliminated �fi "` x� high levels sE �� .� �� .-�,��; r :.�� ` �� tt. some of the disparities. 10 - � � � �° fewweeksag -+. ' a '�� ' s Another big reason is that 1 Real estatf � * �x: u y 5 T Z .... Southwest � h � �� c so-called Old Econom $ -sem �s all rC �� ? manufacturers in sub- it , sector of c Northeast ,. � �� urbs such as Blaine,Frid 0 _ Ist throughout 1 *� leyand Coon Ra ids have 95 96 97 98 ' '99 '00 01 av „,,;.-3.7,,,,,„,,,,t3:41.3.,,,, p half cent market � fxcontinued to chu alon g g Source:United Properties '02 lence, and h� �� .„ K t while the recession has ''�..CCx Y care/biotech u1 s x ” mx�. Left:This view reported infl r �E l of Blaine in- . � $ �� 4''. � � �� f 5 r � � >. � for the third �: � � �; � � �'�,4M 3x��, �� .� `��.� ,� cludespartof - �a 1 f 3Fe secutive wee e A « x x., N x*� a 1 `#s"4t ment Players ` Investors �, }+ �+� �f � i�4 Club Golf _� : itit G *f� jt f .-- ue to flee the ; . s r e'•"� 'i.. a tr f 1 tFx, i .ray v t t = ... FA ✓ > F'-'''''''''f;'''7:::' x - rFyc 3...>y.-x -f+.'r�-„ - s?"3„�: .ti`'r. .m�.#�Y,' t,'f ..§? .r„ y m..a_a.,,, Course, t ,a�;, zs .;'-',,11`.._-_,.41-..,', si` - 44-4421',3u ` -::.t<. „4,,,,,.,,k s .. . „, F,, ;� �r: { i' ,_.,' � -� �.• sector;techr , � 7• 474,:-......t:, «$ foreground. ," 1 r ..; ^ry. ,�.�A, - r +�,_;`14 f "'x`✓ '`'' x}A' k W''? '°: � e ae ay.w r 1. ,. + ' l � taea �i " - k� funds report �xg �� 3-:�''^ t ; ,,` Beyond is the �,y ,..,4-.',. 4,,_:. k g a�. - . k x -" "7 '• < a:v'S a g "§ice z=,., r7'-. -3'ips. -.` - kA s .R= i,F . xt i.' ' ,s w,�: .s . 'tl F• . ,-..sp a, .;,_:,,„,,„,,,,,,,,,.,,;„,-„,,A,,,,,,,.. °x.. .F .z_. g R 1 ' h <_y°? National - ,:_-'.'-;-„:::,..;,:- .''..1.,;'.44.. tt ' � ; �- .:, , ' �- largest outfit t �:v.�: --x. �" �£' r,azf �T � ��4s`r�z 4� ��s _ + .� � 1 r�x�} �� '}e�b�,`�.. � ark 'r r � t Sports Cell- ° r l . `"'' " 2n A x y. ;o -'P :s„....,,,,„„:„,„,,6„.,,,„,,,...,.,6.}`a _ ' q3. ��$4 r / ¢ '14R `�.' .�r;�.'F. 0?°4 4°” since late Mi .3# ''d �' ...°-•u -�' 4f 3 f:: @ 4i :a.5"'- & 'r 'r { S. ter.Right:The re.�,r N,` „' .�.,. ,, 8` a- -: ti - r. , .' �� .i Shad Oak :4A` ,,'f ., 5�� ` - - _ �',�' `Dow Ione xx .;ate - -1, S °` :,.. �4?;€p 6s4 _. y ,#10.1.1 a*s". _ '+, x., .. ;4 st. , y n „ � 0 `` r F °, � ;,,,,,,,,0:,,,,, ,,,, , Service .;�.:�'- *fi;n <.r�.. �'�'r k.�,��"+r "� :;s�-`� '�'�: 3 �� ,. �. Technology 4 d.:G�.�'„` '�' -vfiA�4}� ";f`f . sir'�;, ;�; �. � �.�� .Fa. : o � �, a.. � Building sits � �,� f s �� ?4:��a�Tt ,� .' �s�-F '��3 �� ,� b s �3 a ;:$.�s �e.Nr -.g.� � :�5�.rf �.� y �. � h � : vacant in Eden c �'+e" a t tr° - 3. .''L''.-- ,dv°`'� �`e ::�S r: rte,GFS-'s�, 'ttt'px^, . �. +7't-%'', 43 b'r fs.° -�, ,,*,`,:,...'`Z,.§ ' This Week Mss_. .,�� ...._ ., F..,..�z_.�..._ �r�.a'_:`?�A`.°°�':�.�+Xt're�z�r'x ...., _.,,... .:;.S.:r.. _.F..._a- _.;"1 ..._:.. Prairie. ...�'Y,:E.-xe_ s��5�..T+t.._��n_. � �a'�� ....... . . .rn�; t. x"-`.�'s. ,. .et..�,. David Brewster/Star Tribune Tom Sweeney/Star Tribune Today: Conference .c y. ,., I- �• 7 7 7 7 • 7 YP1P'a one tf"C Ti 111 ! 0 PAGE D2 a STAR TRIBUNE • SUBURBS from Dl than in the south. But the big C ,.,•, competitive advantage that is Industrial _ � touted now—highways—was p „ �t i m�'°�' cited as a clear disadvantage tA4 p ;r L, for the,north just a few years r 'vacancy ...,,,,,,,,,,,,,,,,,,,,::„,„,„.„,„,„:„,,„....0,„ �, , �m , ,„,,, ago. The advocates for the ,£ � < r ra �E north,such as the North Metro rate risingnz .„ = Mayors Association, corn- .;-,::.,.. ..4.,a, J :.*,,,,A ; ¢ z � . r H plained for a generation that in southwest a� `' '" - . while the south had two cross- s t6 Il IX E. town highways - I-494 and ai 17A�� ,- ,� 4 ,Nt Hwy. 62—the north had only qi This picture of a rising north 1 k4 4. a, 1 r s� a t p g F � F � 1-694. And they complained fi also emerges from the latest re ` _°� r g '�s _,0 g _ r that Hwy.100 was a limited ac n ports on industrial vacancies in 4 y� , ° ' 4� a � 'i o cess freewaythrough Bloom- ®� r3 g Q 4/' the Twin Cities and its suburbs if , * f ' ` y;0 �'l_a t at e ington, Edina and St. Louis c; The midyear update from .s �.4 :Az ` l� , � '�.n l ' �r Park, but was clogged with 01 Y P ;;� §wa a sv s�1 ` �� r b ,i �z i izmomgg United Properties,a Blooming t �r a tX' <3 3 M w�V34, ��e SG ��, � 3 , ;�S Y stoplights on its northern half. AaW ton-based commercial real es � °•' "a eft 0�� 4 d� , l R�� 3� '` Nand ow,you can from I-3 Wein Shore- to tate broker, shows that the n_.. `. ,+i,?. F x, �'z...,,. .;; OIOR 4Vxstite s£4 tS,, 610 industrial vacancy rate,includ- Tom Sweeney/Star Tribune view to Hwy. 169 in Brooklyn A ing subleases, for the south- A tarp covers the name of the former occupant in a campus of build- Park, and,when completed,to SE west sector has risen to 17.6 ings now for lease in Eden Prairie's"Golden Triangle"of high-tech 1-94 in Maple Grove. percent, while industrial company offices. And the northern half of ai vacancies in the northeast have Hwy. 100 is being converted A remained about what they've of recession, and that bodes ter (NSC) soccer complex. The into a freeway. C been for years—13.6. well for the southwest. sports complexes east of Hwy. Hwy. 100 was the real Sym- cl The gap between the south- Reese will get plenty of ar• 65 near 109th Av. NE. have at- bol of southern favoritism,said h west and the northeast is even gurnent from those who say the tracted attention and propos- Tinklenberg,who was mayor of al larger in the midyear report by manufacturing economy of the als for high-buck housing and Blaine when Gov.Jesse Ventu- et Colliers Towle, another corn- northern suburbs provides a another major golf complex: ra was mayor of Brooklyn Park. T mercial broker—23.8ercent more solid foundation for fu- the National Youth Golf Cen- "Highway 100 was one of P g Y in the southwest sector to 12.3 ture development than the ter.The city holds last year's ti- those images of what the folks it percent in the northeast. (The technology dreams, congested tle as the metro's fastest-grow- in the northern suburbs be- n real estate companies draw roads and expensive land of ing city, based on housing lieved was disparity in highway tY their sector maps differently, suburbs to the south. starts. On the drawing boaids funding — the southern part CC which accounts for the varying Hanson and other north- in the neighborhood of the being freeways and the north- ti, vacancy rates.) metro boosters point out that TPC and the NSC are two new em part being signal lights and ea "I equate it to a tortoise- in addition to machine shops shopping centers, one an- all kinds of congestion," Tink- ai and-the-hare story,"said Todd and trucking companies, chored by a SuperTarget and lenberg said. "Those kind of lo Hanson, a United Properties northeast suburbs contain 3M the other, the National Market wide disparities aren't good." fa vice president who specializes Co. and Medtronic Inc.,two of Center, by a Menards. Nearby, Larson, Blaine's economic ai in the northern suburbs. "The the largest and most successful just north of the city's new city development specialist, said southwest obviously has been companies in the world. hall, is the 1,000-acre site of the transportation playing field tt a hare. It had the computer "3M and Medtronic are sol- The Lakes, a proposed devel- has been leveled so that the al companies in the '80s. It had id companies," Hanson said. opment of 4,000 homes. north is now slightly less worse C the dot-corns in the mid-90s.It "They make products.They sell "Blaine's the rising star," - off than the south. pl had the telecoms in the late products. They're old-line in- said Curt Larson,economic de- "We're on 35W, and it's not G '90s. The northeast is really dustries. They're bread and velopment specialist for the great," Larson said. "But p kind of old school in who it is butter, and they're tangible city. there's no way I'd want to be on ei and what it does, despite the companies.You look at a lot of His challenge, he said, is 494." fact that it has a lot of quality the companies that have creat- fighting the impression that Tinklenberg, like Larson, e companies.Right now the hare ed problems,and they were the Blaine and other northern sub- said better roads and afford- ei has run out of gas,and the tor- high-flying, Internet, dot-corn, urbs lack what businesses able land will lead to a larger tc toise keeps plugging along." telecom companies and were need,or at least want—an in- population in Blaine (now • Arc Hanson and others say the betting big on the technologi- frastructure that includes about 45,000, headed for al rise of the north is more than a cal revolution and came up los- housing at all prices ranges,the 75,000).That, in turn,will lead rt temporary advantage over a ers." commercial centers ranging to better shopping,such as the al south that bought too quickly The industrial giant of the from retail to office buildings new Village development an- p' • and deeply into the New Econ- southwest had been ADC Tele- and highways for transporting chored by Cub Foods and Wal- tc omy. The northern advocates communications Inc., whose people and products. That in- Mart at I-35W and Lexington si say an economy based on sales of networking and fiber- frastructure hasn't always been Avenue.In addition to the new CC • manufacturing, combined optic hardware and software available,but is now,he said. developments, he said, the with infrastructure enhance- have plummeted since 2000. "My impression is south area has been bolstered by the rnents and affordable land,will ADC's payroll has been sliced metro, maybe they do have old-line industry that's been keep the northern suburbs in half over the past year and that glamour, more white-col- the area's hallmark since Min- from ever again falling far be- the company has put more lar executive jobs, but if you neapolis was founded in its hind the southern suburbs in than 1 million square feet of in- look at the housing that's hap- northeast quadrant on the Mis- economic development. dustrial space on the rental pening up here, you get more sissippi riverfront. "I think people are begin- market in the southern sub- housing for the dollar,"Larson "There's a lot of small-busi Hing to see there's a sea urbs,such as Shakopee. said. "We've got the base for ness manufacturing, none of change," said Elwyn Tink- ' workforce housing, and we're which is dependent on any lenberg, Minnesota's trans- getting the executive housing." trend in the market," Tinklen portation commissioner and BOOming up north He also mentioned Club berg said. "Whatever changes, • former mayor of Blaine. That contrasts with Med- West, upper-bracket housing it keeps moving along. It's not tronic's new headquarters on adjacent to the TPC,the private glamorous. But it moves Not done yet Interstate Hwy. 694 in Fridley golf club that was host to last steadily. It keeps people em- and other signs of a riorthern week's 3M Senior Champion- ployed. It's provided a strong But don't conclude the rise boom—Wells Fargo's new op- ship.And he said the retail cen- base for additional develop of the north means the demise erations center on I-35W in ters are multiplying in Blaine ment to occur." of the southwest, said Ray- Shoreview, a sprawling new like soccer events at the NSC, The north has made prog mond Reese, vice president of SuperTarget-Kohl's shopping which claims to be the largest ress that will be sustained, he Colliers Towle and a broker center a little north on 35W in collection of regulation fields said,but that doesn't mean the who specializes in finding ten- Lino Lakes,the I-Iwy.610 outer in the world and attracts 2.7 south won't rise again. ants for industrial buildings in beltway that eventually will million visitors and$24 million "With the dynamic and the the southwest. connect 35W with I-94 through in spending annually. strength of Eden Prairie,Chas- Reese puts its this way: the northern suburbs, the ex- Larson also talks about a ka and Chanhassen,they're go- If a developer had a site pansion of the Riverdale shop- uniquely Minnesota advantage ing to come back, too," Tink- s northeast and a site southwest, ping center in Coon Rapids. when recruiting businesses. lenberg said. "Wide disparities where would he or she be most And then there's Blaine, "I've heard it from execu- were not good for the region as • certain the new building could known in the past as a flatland tives," Larson said. "They live a whole. And they're still not s.. be leased? "That would be of peat bogs and trailer parks, on the north side because they good.We have to make sure all Mc southwest,"he said,because it which is becoming better have cabins up north." parts of the region will grow." • will be technology companies, known for the prestigious TPC He said land costs have.al- Oi not manufacturing companies, Golf Course and the world-re- ways been,and still are,cheap- —Larry Werner is at Mt that will lead our economy out nowned National Sports Cen- er, in the northern suburbs lwenrer@startribune.com. 61 .