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7.0. EDSR 10-14-2002 i Item # 7 • City of Elk River MEMORANDUM TO: Economic Development Authority 4 FROM: Heidi Hall, Economic Development Assistant 4' DATE: October 14, 2002 SUBJECT: Strategic Industrial Marketing Activities Update Attachments • Key Account 2002-2003 Program Schedule • MN Manufacturing&Technology Week Flyer • "Elk River Works Toward Removing Trolls",MN Real Estate Journal, Oct. 14,2002 • Elk River Landfill Gas-to-Electric Facility Open House Press Release • Downtown Revitalization Q&A Newsletter, Oct. 2002 Staff provides the EDA with a Strategic Industrial Marketing Activities Update every month. In order to keep the theme of the updates consistent, staff will report on activities within each of the seven marketing strategies outlined in the Strategic Industrial Marketing Action Plan for 2002-2004. I. Product Offering Strategy Staff has met with Ehlers &Associates to explore options for encouraging the development of private industrial land and options for financing a city-owned industrial park. The EDA may consider a future work session for the discussion of these issues. In addition, the EDA may consider scheduling a joint site tour with the Planning Commission to visit competitive industrial parks in Anoka,Ramsey,Rogers, and Big Lake. I I. Competitive Strategy Staff has continued to add to the existing Competitive Analysis file,which includes articles and general information about development projects and marketing of competing communities. III. Key Account/Lead Generation Strategy Staff has completed the attached schedule of regular contact and meetings with key accounts • for the remainder of this year and the year 2003. • IV. Promotions &Advertising Strategy Inquiries Staff has continued to track all commercial and industrial inquiries that have passed through the Economic Development offices. Staff will provide and update on prospects at the November meeting. Economic Development Web Page Staff has been working with Tammy Weidenbach of Tammy Miller Design to complete a design of the Economic Development web page,which is located within the City's web site at www.ci.elk-river.mn.us. The page includes an interactive map of available industrial sites. 2003 Ad Campaign Staff has also been working with Tammy Miller Design to prepare for next year's Strategic Industrial Advertising Campaign,which has included photo shoot visits to four manufacturing firms that have not been featured in the past. 2002 MN Real Estate Journal (MREJ) Conference Roughly 150 people attended MREJ's Economic Development& Site Selection Conference, held this past Tuesday, October 861. Staff featured the City's Economic Development display exhibit and participated in a panel discussion regarding topics such as business park market trends, challenges of today's market, and keys to successful projects. • MREJ North by Northwest-Market Update Conference Staff plans to attend this conference,which will be held on November 22nd. The event will feature development opportunities in Wright,Anoka, and Sherburne Counties. Developers, professional site selectors,brokers and local CEOs and CFOs will be in attendance. MN Manufacturing&Technology Week- Oct. 21-25,2002 Staff has been working with the Chamber of Commerce in planning Elk River's MN Manufacturing&Technology Week event,which will take place over the course of two days (please see attached flyer). This year's event includes tours of NRG (Refuse Derived Fuel facility), Great River Energy (GRE), and SoftPac, a luncheon and keynote speaker at GRE, and an open house at the Landfill Gas-to-Electric Facility. In addition, staff is working with Tammy Miller Design on a full-page "Thank You" ad that will appear in the October 23`d issue of the Elk River Star News along with a feature article. At its October 14th meeting, the City Council will consider the Mayor's proclamation of October 21-25, 2002 as MN Manufacturing&Technology in Elk River. V. Public Relations Strategy PR Article The attached article was featured in a special insert of the MN Real Estate Journal's October 11111 14th issue. Mike Portor of MC Portor Marketing Communications worked with staff to • develop the first public relations article as part of Economic Development's new Public Relations Campaign. MC Porter Marketing Communications was referred to the City by Duckor&Associates. Energy City Staff has been the primary contact and planner of the Elk River Landfill Gas-to-Electric Facility Open House,which will be held on October 22, 2002. The planning process has included the following activities: • Event press release (text& coordination for placement) • Formal invitation & envelope (design& text) • Event volunteer coordination • Donation request letter for Environmental Learning Center furnishings VI. Strategic Partnership Strategy Downtown Revitalization Project Staff has continued to work on the Downtown Revitalization Project. The attached Q &A was distributed in the October 9th issue of the Elk River Star News (distribution of almost 7,900) to provide the public with an update on the project. Currently, staff and Ehlers &Associates are working with MetroPlains in negotiating a pre- development agreement for the revitalization of downtown. • VII. Business Retention Strategy As mentioned earlier under the Promotions and Advertising Strategy section, staff is working with Tammy Miller Design on a full-page "Thank You" ad that will appear in the October 23`d issue of the Elk River Star News. 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Tuesday, October 22, 2002 10:00—10:45 NRG (Refuse Derived Fuel Facility), 10700— 165th Ave. NW 11:00— 11:45 Great River Energy, 17845 East Hwy 10 12:00— 12:45 Luncheon&Keynote Speaker at Great River Energy 1:00—2:00 Visit to Landfill Gas-to-Electricity Facility Open House, 22596 Hwy 169 NW Speaker Steve Shurts,Vice President Power Supply of Split Rock Energy,will speak of the importance and future of the energy industry and its role in the business industry. " rain � . f • ® ^ . NRG GRE Landfill Gas-to-Electric Facility Thursday, October 24, 2002 10:00— 10:45 SoftPac Industries, Inc., 13512 Business Center Drive (Space is limited.) M SoftPac Industries RSVP by contacting the Elk River Area Chamber of Commerce at 763-441-3110 by October 18, 2002. Attend one or all events as your schedule allows. Cityilistrilll--.... 11,S or El �River Area • River Sponsored by the Elk River Economic Development Authority 101. limberaf�,n &the Elk River Area Chamber of Commerce. ELKRIVER . ' GYc ITY -'�'SiRAry THE ROWER OF EFFICENT 6 i'ENEW4'E City of Elk River Press Release Elk River Landfill Gas-to-Electric Facility Open House Please join us in celebrating the completion of the latest Energy City Demonstration Project, the Elk River Landfill Gas-to-Electric Facility located adjacent to the Elk River Landfill at 22596 Hwy 169 NW. The facility is one of many projects initiated in the Elk River area to demonstrate various applications of alternative energy technologies. October 22, 2002 2:00-4:00 PM Presentation at 3:00 PM Refreshments will be served. This facility utilizes methane gas from the decomposition of landfill waste to generate electricity. The facility will serve up to 1,600 Elk River area homes and will be expanded in the near future to serve 2,200 homes. • Tour the facility and take a trip to the top of the Elk River Landfill. • Discover Energy City, its demonstration projects and partners while visiting the facility's Energy City Environmental Learning Center. Please contact Heidi Hall at 763-241-5526 with any questions regarding this event. sij Vaøtaa' RetJt&&4twItT • City of 8cA Newsletter Elk , IRis.Ter OCTOBER 2002Enhancing Downtown Elk River's Role �' rz - Asa Vital Retail,Commercial and Residential Area. Q. What is happening with the revitalization and analysis of market feasibility,financial feasibility,as well as communi- redevelopment of Elk River's downtown? ty input. It is possible that as a result of this review,the exact proper- A. The Elk River Housing and Redevelopment Authority(HRA)and City ties to be acquired and the project area may change somewhat.An Council will enter a preliminary development agreement with open house will be held later this year for public input into a prelimi- MetroPlains Development for the downtown revitalization project.The nary site plan. HRA selected and the City Council ratified the selection of MetroPlains from three finalist developers at its August 26 meeting. Q. Do we know at this point which downtown City officials said MetroPlains demonstrated the most experience on buildings will be excluded from the development? similar projects and had received a high level of support at the July A. No,we do not have those specifics yet. However, consistent with the open house from residents and the busi- recently completed Historic Contexts Study,the ness community. project will respect the traditional character of This Q&A newsletter downtown.We do know the project will exclude Q. What happens next? responds t, some the"brick block"which includes the buildings A. The HRA and the developer will enter a pre , along the west side of Jackson Avenue south of liminary development agreement in the corn- :Of the recent questions Highway 10. 41 ing months.During the preliminary develop- about Elk River's ment agreement phase,the developer works with the City to identify issues that must be ;downtown revitalizat n, Q What will happen to the existing addressed prior to the final development businesses in the downtown agreement phase.These issues include and-ti:- elapmer t, redevelopment area? financial and market feasibility,project sched- ,,,, .,. .- :, .. A. What typically happens in other downtown ule,and a refined site plan. If the City chooses to move forward to a redevelopment efforts is that some businesses final development agreement,that is when the planning and zoning choose to stay and some choose to relocate.The developer will approvals, land acquisition and construction will occur, work with downtown business owners within the project area to iden- tify their interests and how they could be incorporated in any Q. What is the timetable for a downtown project rede- velopment plans. For those businesses that do not stay,arrange- to occur? ments for acquisition and for relocation assistance will be offered. A. The HRA expects to enter a preliminary development agreement with MetroPlains in October.The preliminary development agreement Q. When will the developer contact downtown phase is expected to last for at least six to nine months with a com- businesses and property owners? munity open house later this year on preliminary site plan options. If A. MetroPlains will start to make initial contacts with property owners the developer satisfactorily completes the preliminary development and tenants this fall after a preliminary development agreement has agreement phase,the City and developer would enter a final devel- been reached with the HRA. Property is not actually acquired until a opment agreement.The earliest construction could begin would be final development agreement has been reached by the City and sometime in 2004. the developer. Q. Does MetroPlains already have a completed Q. If my business or home must relocate in the plan for the project? future,will I receive any financial assistance? A. No, but MetroPlains has a concept for redevelopment which A. Businesses and residents who are required to relocate from the includes the following sites: redevelopment area are provided relocation assistance to help with • East King Avenue and the northeast corner of moving costs,as provided for under the Uniform Relocation King&Main, and, Assistance Act. Properties that are purchased for redevelopment • The southwest corner of Main and County Road 42 must be purchased at fair market value.That value is determined by (Parrish Avenue Bridge). a professional appraisal. In situations where communities are under- taking redevelopment,the acquisitions are typically accomplished The next step will involve refining the MetroPlains concept for through voluntary sales. CITY OF ELK RIVER DOWNTOWN RIVERFRONT REVITALIZATION Q&A NEWSLETTER OCTOBER 2002 Q. As a business owner, when should I begin site costs have been paid,the tax increment goes to the to look for a new location? taxing jurisdictions. A. It is always good to be aware of options. However,at this time it is still too early to be certain if the redevelopment will be successfully Q. Why is the City pursuing redevelopment • completed and when it will be completed. It is also important to note and revitalization of downtown? that while businesses are free to relocate at any time, if they relocate A. For more than 30 years studies have emphasized the need to better ahead of the redevelopment process they may lose their chance to utilize the riverfront,capitalize on the traditional character,and obtain possible relocation assistance. ensure safe pedestrian and vehicle movement. Investment in down- town has stagnated and the riverfront is underutilized.The redevel- Q. Does the City have any program to help downtown opment will enhance downtown Elk River's role as a retail,commer- businesses that will not be redeveloped to restore cial and residential area and revitalize the investment made in the their traditional character? downtown business district. A. Yes.The Elk River Economic Development Authority(EDA)has a Micro Loan Fund to help businesses to rehabilitate and restore their Q. Is this redevelopment a"sure thing"? buildings.A loan for up to$50,000 is available at two points below A. No. Redevelopment is a complex process and requires many steps the prime rate with financing for up to three years and amortization and cooperative planning by the developer and the City.The rede- up to 15 years.At least 20 percent of the loan dollars must be used velopment project must meet the goals of the community and pass for improvement of the building's facade and the EDA's loan must the test of both market and financial feasibility.That is why the be matched on a one-to-one ratio. For more information,contact process begins with a preliminary development agreement phase to Economic Development Director Cathy Mehelich. ensure that the important issues can be resolved before moving on to the final development phase. Q. How will this redevelopment project be funded?Will the project impact my property taxes? Q. When will there be an opportunity for more A. The project will be funded primarily through land payments by the public involvement? developer and tax increment finance. Because the project is being A. Once the developer, in cooperation with the City, has prepared pre- funded by other sources,the City does not anticipate that it will liminary site plan options,an open house will be held to get commu- impact property taxes.The tax increment financing assistance, if nity review and feedback of the plan.The exact date of that open used,will be provided based upon the taxes generated by this house is not known, but it will likely be held later this year. More development and will not result in a tax on existing taxpayers. information will be available in the coming months. • Q. What is tax increment financing (TIF)? Q. How can I stay informed? A. TIF is a financing tool created by the Minnesota Legislature in the mid- A. Copies of this and future newsletters will be available at City Hall,the 1970s to help encourage development and redevelopment.Under TIF, Chamber of Commerce,and Elk River Municipal Utilities. In addition, property tax revenue equivalent to what the current property generates information will be provided in the Elk River Star News and on ERN continues to go to all taxing jurisdictions.A portion of the tax revenue Channel 12,and the city website at www.ci.elk-river.mn.us. If you that results from the increased value of the new development,also have questions about the revitalization process,please feel free to called the"tax increment,"goes to pay site costs such as acquisition, contact the Director of Economic Development,Cathy Mehelich demolition,water,sewer,utilities,and street improvements.Once the at(763)441-7420. fl-('. ai, IL City of Elk ,, River 13065 Orono Parkway, Box 490 Elk River, MN 55330 •