9.1. EDSR 11-12-2002 Item 9 . 1 .
• \i".>"Li- .�
City of
Elk - -
River
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Developmen
DATE: November 12, 2002
SUBJECT: Revised 2003 EDA Budget
Attachments
• Budget Worksheet—Revised 2003 Budget, EDA
• Staff Budget Memo from August 19,2002 EDA Meeting
• Initiative Foundation Thank You correspondence, 10/2/02
• Background
In August 2002 the EDA adopted the year 2003 Economic Development Authority budget.
The attached staff memo from the August 19, 2002 EDA provides background on specific
line item expenditures.
Budget Revisions
The attached revised 2003 budget includes the following additional expenses:
• Miscellaneous Expense Addition of$5,000
o EDA authorized contribution to the Initiative Foundation.
• Other Professional Services Addition of$4,000
o Duckor& Associates work on industrial park planning issues and
ongoing contact for the Economic Development Department per attached
memo from the City Adminstrator,Pat Klaers.
Revenues to fund the Economic Development Department are derived from the EDA and
HRA levies,in accordance with the following statutory limits:
• EDA 0.01813% of taxable market value
• HRA 0.01310% of taxable market value
Staff had estimated an 8%growth in market value for year 2003,which resulted in$195,000
• in revenue. The latest information from Sherburne County indicates 2003 market values for
Revised 2003 EDA Budget
November 12,2002
Page 2 of 2
the City of Elk River at an approximate 15%increase. As a result, staff estimates $209,750
in revenue. The revenue change does not affect the EDA's Business Incubator budget. The
revised budget includes the revenue adjustment.
Recommendation
Staff recommends the EDA consider approval of the year 2003 EDA Budget as revised.
•
•
S:\EDA\EDADMIN\EDA Budget\2003BudgetAmend.doc
BUDGET WORKSHEET
Revised 2003 EDA Budget Date: 11/06/02
Time: 9:02am
CITY OF ELK RIVER Page: 1
Prior Current Year
Year Original Amended Actual Thru Estimated
11110
0/31/02 Actual Budget Budget October Total Requested Recommended Adopted
Fund: 920 EDA
Revenues
TAX TAXES
3111 Current Ad Valorem Taxes 146,521 153,950 153,950 86,089 195,000 209,750
TAXES 146,521 153,950 153,950 86,089 195,000 209,750
GOVT INTERGOVERNMENTAL REVENUE
3322 Homestead Credit 12,126 0 0 6,425
INTERGOVERNMENTAL REVENUE 12,126 0 0 6,425
OREV OTHER REVENUE
3621 Interest Income 3,479 3,000 3,000 2,983 3,000 3,000
3629 Miscellaneous Revenue 10,500 5,000 5,000 3,930
OTHER REVENUE 13,979 8,000 8,000 6,413 3,000 3,000
TRIN TRANSFERS IN
3949 Transfer-HRA 6,500 3,500 3,500 3,500 3,500 3,500
TRANSFERS IN 6,500 3,500 3,500 3,500 3,500 3,500
Total Revenues 179,126 165,450 165,450 102,427 201,500 216,250
Expenditures
Dept: 620.621 ECONOMIC DEVELOPMENT
PS PERSONAL SERVICES
41 ular Pay 47,282 65,250 65,250 32,438 57,900 72,600
91 ertime Pay 0 0 0 0
4103 Part-time Pay 12,600 12,600 12,600 8,538 12,600 12,600
4104 PERA 2,406 3,750 3,750 1,894 3,550 4,400
4105 FICA 3,693 4,800 4,800 2,520 4,400 5,300
4107 Medicare 863 1,100 1,100 589 1,050 1,250
4108 Insurance 3,716 5,800 5,800 4,236 6,650 7,750
4109 Workers Comp 107 350 350 86 200 250
PERSONAL SERVICES 70,667 93,650 93,650 50,301 86,350 104,150
SUPP SUPPLIES
4201 Office Supplies 1,606 3,000 3,000 2,748 1,950 1,950
4212 Fuels & Lubs 57 150 150 45 150 150
SUPPLIES 1,663 3,150 3,150 2,793 2,100 2,100
OSC OTHER SERVICES 6 CHARGES
4304 Legal Fees 715 1,750 1,750 4,113 1,750 1,750
4319 Other Professional Services 1,442 9,000 9,000 9,282 6,500 11,500
4321 Telephone 84 200 200 39 200 200
4322 Postage 486 1,500 1,500 518 1,500 1,500
4331 Travel, Conferences 6 Schools 3,762 5,000 5,000 5,324 8,650 8,650
4311111/ertising/Marketing 51,346 40,000 40,000 32,903 40,000 98,200
4359 Publishing -201 1,000 1,000 239 1,000 1,000
4361 Insurance 391 500 500 347 500 500
BUDGET WORKSHEET
Revised 2003 EDA Budget Date: 11/06/02
Time: 9:02am
CITY OF ELK RIVER Page: 2
Prior Current Year
Year Original Amended Actual Thru Estimated
M 0/31/02 Actual Budget Budget October Total Requested Recommended Adopted
Fund: 920 EDA
Expenditures
Dept: 620.621 ECONOMIC DEVELOPMENT
OSC OTHER SERVICES 6 CHARGES
4433 Dues 6 Subscriptions 1,636 700 700 437 1,600 1,600
4440 Miscellaneous 6,162 6,000 6,000 6,027 6,000 11,000
OTHER SERVICES 6 CHARGES 65,823 65,650 65,650 59,229 67,700 85,900
CAP CAPITAL OUTLAY
4560 Equipment 0 0 0 0
CAPITAL OUTLAY 0 0 0 0
TROD TRANSFERS OUT
4721 Transfer-General Fund 3,000 3,000 3,000 3,000 3,000 5,000
TRANSFERS OUT 3,000 3,000 3,000 3,000 3,000 5,000
ECONOMIC DEVELOPMENT 141,153 165,450 165,450 115,323 159,150 197,150
Total Expenditures 141,153 165,450 165,450 115,323 159,150 197,150
EDA 37,973 0 0 -12,896 42,350 19,100
•
•
City of
Elk -�-;
River
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: August 19, 2002
SUBJECT: Consider Year 2003 Budget
Attachments
• Budget worksheet—Page 1 &2—EDA Projected Revenue & Expenses
• Budget worksheet—Page 3—Business Incubator Projected Revenue &Expenses
Economic Development Authority Budget Summary
• The Economic Development Department consists of two separate budgets including:
• Economic Development Authority
• Housing&Redevelopment Authority
In the past the City General Fund supported 20% of the personal service expenses. The
EDA and HRA levies are now at a point that it is feasible to balance the Economic
Development Department without the General Fund. Revenues are estimated at 8%growth
in market value for year 2003.
Personal Service costs (salaries and benefits) are proposed to be divided as follows:
• EDA-70%
• HRA-30%
Other common administrative expenses are proposed to be shared by the EDA and the
HRA. As in previous years, the HRA would make a one time transfer in the amount of
$3,500 to the EDA in year 2003 to cover approximately 25% of the shared expenses.
Following is a line item analysis of the proposed year 2003 expenditures for the EDA:
• Personal Services $104,150
• Office Supplies (shared with HRA) $ 1,950
• Fuels &Lubricants (shared with HRA) $ 150
• • Legal Fees $ 1,750
• • Other Professional Services $ 7,500
o Update City Strategic Economic Development Plan
o Ehlers &Assoc. &HRGreen services
• Telephone (shared with HRA) $ 200
• Postage (shared with HRA) $ 1,500
• Travel, Conference & Schools $ 8,650
o Includes 2 Economic Development Finance
Professional Courses for Economic Development Assistant
• Advertising/Marketing $ 48,200
o Economic Development Web Site - $4,000
o New Industrial Park Signage - $5,000
o Advertising (Production &Publication) - $28,000
o Public Relations Writer- $10,000
o Marketing Worksession (Duckor&Assoc) - $1,200
• Publishing $ 1,000
• Insurance $ 500
• Dues & Subscriptions (shared with HRA) $ 1,600
• Miscellaneous
o Donation to Chamber of Commerce $ 6,000
• Transfer out to General Fund $ 5,000
Total EDA Year 2003 Proposed Expenditures $188,150
• Total EDA Year 2003 Projected Revenues $201,500
Please note that the proposed 2003 budget does not include a contribution to the Initiative
Foundation. The EDA may consider making a contribution out of its fund reserve balance
if the Commission wishes to make a contribution in 2002.
Business Incubator Budget Summary
The EDA Business Incubator budget is based upon the assumption that the program
continues as it has over the past five years in Larry Hickman's building space. Staff is
currently exploring options, as directed by the Incubator Advisory Committee, for more
"technology-friendly" space. In addition, the Incubator Advisory Committee is
recommending the EDA consider increasing the fee for services to Genesis Business
Centers (Harlan Jacobs) from$500 per month to $1,000 per month.
The EDA Business Incubator budget includes total revenue from rent expected in the
amount of$12,000 in 2003. Current tenants include Vertical Publishing, Bixby Energy
Systems and Knowledgenetica. Proposed business incubator expenses include the following:
Operating supplies $ 1,000
Other Professional Services (Genesis Business Centers) $12,000
Legal $ 1,000
• Cleaning Services $ 500
Building Rent (after March 2003 not to exceed$3/sf) $20,400
• Total Business Incubator Expenditures $34,900
Total Business Incubator Revenues $12,000
The approximate $22,900 shortfall in this budget is proposed, as it has been in the past, to
be funded through the use of funds generated by Tescom Corporation's loan repayment.
One of the Incubator facility options being explored is a 10,000 square foot building
addition to the proposed Cymbet manufacturing facility expansion. The developer and
proposed building owner have indicated to staff an interest in making an incubator addition
to the facility. Details of the new Business Incubator space will be discussed as part of the
Cymbet Corporation Expansion Siting Proposal on the August 19, 2002 EDA agenda.
Should the proposed Incubator concept be approved and eventually finalized, the Business
Incubator Program budget would be reviewed by the EDA for adjustment.
Recommendation
Staff recommends the EDA consider approval of the Year 2003 EDA Budget and Business
Incubator Budget as presented.
S
•
XI 0 7 2002
,
• October 2, 2002
INITIATIVE
FOUNDATION
Patrick Klaers
City of Elk River
13065 Orono Pkwy
PO Box 490
Elk River, MN 55330-0490
Dear Mr. Klaers, //- _-
ix-
Please extend our thank you to the City of Elk River Economic Development Authority and to the City Council
for supporting the Initiative Foundation's five-year "Unlock the Potential"Campaign. Your support shows a
true commitment to help build and sustain strong communities throughout Central Minnesota. As you know,your
gift will be matched dollar for dollar by The McKnight Foundation. That match goes directly to our general
endowment to strengthen our Foundation for community work far into the future.
Your support of the Initiative Foundation will ensure our regional impact in these key focus areas:
• Promote Economic Stability-Sustain an economic environment in Central Minnesota capable of
responding to business opportunities affording wealth creation, livable wage jobs and diversification of
the economic base.
• Increase Utilization of Technology-Facilitate increased utilization of technology for community and
IIIeconomic development.
• Preserve Space,Place and Resources-Encourage efforts that follow principles of sustainable
development in order to preserve open space, a sense of place, and natural resources.
• Embrace Diversity/Reduce Prejudice-Initiate, support and promote efforts that reduce prejudice
(across age, class culture and ability level)by embracing diversity as an asset.
• Children,Youth and Families-Initiate, support and promote efforts that encourage development of
healthy children and families.
• Build Capacity of Nonprofit Organizations-Enhance and empower nonprofit organizations by helping
them improve their internal effectiveness.
We are pleased to follow the gift schedule you have outlined: $5,000 on 12/30/03. For your convenience,we will
send you a pledge reminder one-month prior to that gift date.
Imagine focusing on what can be.Imagine combining the strengths of all of us. Imagine people giving back.
Imagine Central Minnesota. Imagine unlocking its potential. That's what your gift has helped accomplish. Thank
you.
Sincerely, ,,-.� & 420 FA ..> — /.
/C 1:-(;;" -- i I et)/ .
7 411r2- ‘41-"-
Kathy
t'l-"Kathy Gaa swyk " Connie Marcyes
President Director of Development 405 FIRST STREET SE
III LITTLE FALLS,MN 56345
WWW.IFOUND.ORG ,.
PRONE: 320.632.9255
FAx: 320.632.9258
EQUAL OPPORTUNITY LENDER,
PROVIDER AND EMPLOYER.
• ` ,� Item 9.1 .
,
Oty of
Elk ago•••••—,
River
MEMORANDUM
TO: Economic Development Authority
FROM: Pat Klaers, City Administrator
DATE: November 12, 2002
SUBJECT: Consider Revised 2003 EDA Budget
At the last EDA meeting, discussion took place about obtaining a proposal from Dukor and
Associates, Inc. for three work items that were listed in the 2002-2004 Action Plan. Attached
for your information is the Action Plan and the EDA August 19 minutes for when this Plan
was approved.Also, at the last EDA meeting discussion took place regarding obtaining a
• proposal from Dukor and Associates, Inc. for ongoing services.
The 2003-2004 Action Plan is very ambitious and may take more than two years to
implement,plus, the economic development staff has other important responsibilities, such
as working with the HRA on the downtown renovation/redevelopment project. In the last
month or so staff has met and discussed work projects and 2003 priorities for economic
development. During these discussions it was decided that staff should concentrate on the
design standards for industrial parks issue and on the city-owned industrial park issue. It was
also decided to move into 2004 the siting/expansion process work item (page 5 of the
Action Plan) and the school district/educational work item (page 10 of the Action Plan).
These work items are planned to be led be Dukor and Associates, Inc.
The EDA and staff has talked about the Business Park,Industrial Park, and Office Park
zoning classifications and design standards at a number of meetings over the last year or so
and has also recently talked about when and under what conditions the city should enter into
the industrial development market with its own property.These two issues are tied together
and are deemed by staff to be top priority Action Plan work items for 2003. Director of
Planning Michele McPherson will be at this EDA meeting to discuss how she envisions
utilizing Dukor and Associates,Inc. to help address the development and design standards
issue.
The other item discussed at the last EDA meeting,in terms of obtaining a proposal from
• Dukor and Associates, Inc., related to ongoing services. In this regard, staff has discussed a
retainer type of contract. In further discussing this issue with staff members it was decided
S/Council/Pat/EDABudget
. that at this time it is too difficult to pinpoint and totally define how the department will
utilize Dukor and Associates, Inc. Accordingly,it is suggested that staff simply utilizing
Dukor and Associates as appropriate and pay for this work on an hourly basis. It is
anticipated that this work would include general advice and counsel by email or telephone as
needed and occasional meetings. Staff anticipates this ongoing relationship being developed
and defined "as we go."Later,if it is desired,we can always suggest a work plan and a
retainer type relationship. In talking it out with staff and thinking about all of our options
and our workload,it was decided that this hourly approach is best at this time.
The EDA budget has increased $4,000 in the professional services line item for Dukor and
Associates, Inc.work in 2003.The cost for the industrial development design standards
work will be established later, and the use of Dukor and Associates,Inc. on an ongoing basis
will be monitored and reviewed for consideration of a future retainer type arrangement.
•
S/Council/Pat/EDABudget
• 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, and Pricing, and
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
responsibilities for both industrial development and the Downtown Revitalization Project.
Duckor 8z.Associates, Inc. 2
A BluePrint for Your Success . . . Today and Tomorrow
• 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.
❑ To target the following Standard Industrial Classification sectors: Industrial
Machinery, Fabricated Metal and Electronic Equipment.
City of Elk River's Product Offering
❑ Confidential Location Site Services
❑ Information and knowledge of state, regional and local products and services that
help an industrial client locate, grow and prosper.
❑ Available Industrial Land
o Land Acquisition Incentives
❑ Tax Increment Financing
o 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.
S
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)
CI 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)
❑ Expand knowledge and understanding of state, regional and local Economic
Development tools to assist industrial clients to grow and prosper. (On-going)
❑ 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 Lt.Associates, Inc. 4
A BluePrint for Your Success . . . Today and Tomorrow
Industrial Land Development
o 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)
o 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)
o Revisit and revise, as appropriate,the "Park Dedication Fees" for industrial clients
e.g., $2,000 per acre. (Fall-Winter 2002-2003)
o Develop and pay for attractive signage for the dedicated Elk River Industrial Park.
(Winter 2003)
o 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
City of Elk River staff members to review and improve, if required, the
Siting/Expansion Process. (2003)
o 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)
o 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
❑ 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)
❑ Add new communities to Competitors List when a current client or
broker/developer identify them. (On-going)
i
Duckor 8&Associates, Inc. 6
A BluePrint for Your Success . . . Today and Tomorrow
1111
Key Account and Lead Generation Strategy
To establish the City ofElk River as theplace to sitea light-manufacturing firm 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
❑ 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)
o 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)
o Utilize other appropriate business leaders as part of the Key Account Team, as
appropriate. (On-going)
o Develop key account sales plans including a schedule for each account. (On-going)
❑ 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)
o 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)
• ❑ 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
❑ 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 ofElk River is a business-friendly community for light 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)
❑ 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)
Aft ❑ Leverage the "Energy City" connection, if appropriate. (On-going)
❑ Place articles in appropriate newspapers, business and trade journals. (On-going)
o Place print ads and stories acknowledging completed projects. (On-going)
Duckor&Associates, Inc. 9
A BluePrint for Your Success . . .Today and Tomorrow
•
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:
o Improve the attractiveness of the E. Highway 10 and central business district,
o Promote a coordinated Highway 10 corridor plan,
❑ Promote Commuter Rail,
o Promote all levels of Housing, and
o Support Training and Education.
Action
Policy Making
•
o ,. .. or&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)
❑ 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
❑ 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)
❑ Develop a public relations article talking about the value,purpose and benefits of the
,� manufacturing sector for a community (September 2002)
❑ 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
IDSPECIAL MEETING OF THE ELK RIVER
ECONOMIC DEVELOPMENT AUTHORITY
HELD AT THE ELK RIVER CITY HALL
MONDAY, AUGUST 19,2002
Members Present: President Gongoll, Commissioners Koenig,Dwyer (5:15 p.m.), Klinzing,
Kuester,Tveite and Motin
Members Absent: None
Staff Present: Director of Economic Development Catherine Mehelich,Economic
Development Assistant Heidi Hall, City Administrator Pat K.laers, and
Recording Secretary Tina Allard
1. Call Meeting To Order
Pursuant to due call and notice thereof, the meeting of the Economic Development
Authority was called to order at 5:00 p.m. by President Gongoll.
2. Consider 08/19/02 Agenda
COMMISSIONER TVEITE MOVED TO APPROVE THE AUGUST 19,2002,
O EDA AGENDA. COMMISSIONER KOENIG SECONDED THE MOTION.THE
MOTION CARRIED 6-0.
3. 2002-2004 Strategic Industrial Marketing Plan
Economic Development Assistant Heidi Hall stated that Duckor and Associates was hired
to assess and update the Strategic Industrial Marketing Plan. She introduced Anita Duckor.
Ms. Duckor presented the EDA with an assessment of the 2000-2002 Activities Plan. She
suggested strategies and presented a Key Action Plan that should be implemented through.
2004.
Ms. Duckor stated that the Business Park Design Standards Ordinance should be more
flexible to be competitive in attracting clients to Elk River. She stated that companies (like
SoftPac) might have a building design unique to their type of business but would not be
allowed into Elk River today because of the Business Park Design Standards Ordinance.
Ms. Duckor recommended that a dedicated city-owned industrial park be established with an
incentive to potential light industrial clients to help keep land costs low.
Pat Dwyer arrived at 5:15 p.m.
Discussion took place regarding the recommendations for up front financing for projects,
the key accounts strategy, the public relations strategy, and for a reduced emphasis on
advertising.
•
Economic Development Authority Minutes Page 2
August 19, 2002
• President Gongoll stated that overall he liked the Plan but indicated that some Key Actions
may not be feasible. He stated that the city should present a more "Open for Business
Approach." He stated that the Business Park Design Standards Ordinance is an issue that
viz needs to be reconsidered. He also stated that he liked the idea of a city-owned dedicated
industrial park to offer potential clients but that it may not be financially feasible.
Commissioner Dwyer stated that the city should establish a "Champion" to help promote
key accounts and there should be a monthly status report of the key accounts.
Commissioner Motin stated that it makes sense for the city to have dedicated land for
Industrial Park. He is concerned about changing the design standards for Business Park
property. He stated that it may be okay for some light industrial companies to be in the
Business Park but he is concerned about the whole area turning into all light industrial type
buildings. He stated that maybe a portion of the Business Park could be designated for
industrial purposes.
COMMISSIONER DWYER MOVED TO ACCEPT THE STRATEGIC
INDUSTRIAL MARKETING PLAN 2000-2002 ASSESSMENT AND 2002-2004
ACTION PLAN. COMMISSIONER TVEITE SECONDED THE MOTION.THE
MOTION CARRIED 7-0.
4. Consider for Adoption the City of Elk River Tax Rebate Financing Policy as Amended
Director of Economic Development Catherine Mehelich reviewed amendments to the city's
Tax Rebate Financing Policy.
COMMISSIONER MOTIN MOVED TO ADOPT THE TAX REBATE
FINANCING POLICY WITH THE FOLLOWING CHANGES:
• ANY DEVELOPER RECEIVING TRF ASSISTANCE SHALL PROVIDE
A MINIMUM OF TWENTY PERCENT (20%) CASH EQUITY
INVESTMENT IN THE PROJECT. PROJECTS UTILIZING THE
• SBA504 PROGRAM WILL BE REQUIRED TO PROVIDE A MINIMUM
OF TEN PERCENT (10%) CASH EQUITY INVESTMENT. (SECTION
IV.B.)
• TRF PROPOSALS SHALL NOT BE USED TO SUPPORT
SPECULATIVE OFFICE PROJECTS. SPECULATIVE PROJECTS ARE
DEFINED AS THOSE PROJECTS WHICH HAVE PRE-LEASING
AGREEMENTS OR LETTERS OF INTENT FOR LESS THAN 50% OF
THE AVAILABLE SPACE.
IN ADDITION, LEASIBLE OFFICE PROJECTS MUST MEET THE
FOLLOWING GUIDELINES:
• EVIDENCE OF THE 50% OCCUPANCY MUST BE
REPORTED TO THE DIRECTOR OF ECONOMIC
DEVELOPMENT SIX MONTHS FOLLOWING AN
ISSUED CERTIFICATE OF OCCUPANCY.
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