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EDSR MEMORANDUM 04-09-2001 .14V of or Elk River TO: FROM: MEMORANDUM Economic Development Authority Cathy Mehelich, Director of Economic Developme tl�i' DATE: April 6, 2001 �� SUBJECT: Meeting Cancellation - Informational Memo Due to a lack of pressing agenda items, the April EDA meeting will be cancelled by order of the EDA President,Jeff Gongoll. Attached for your review are the minutes from the March 12th EDA meeting. The next regularly scheduled EDA meeting is May 14th. • Following is a status report on various projects: 1. 2000 Annual Report...Attached is a copy of the 2000 Economic Development Department Annual Report that was recently presented to the City Council. 2000 was a successful year for economic development with industrial construction occurring on nearly 25-acres. This success could not have been possible without the cooperation and interaction of various departments. In addition, several marketing initiatives were undertaken including the completion and early implementation of the strategic industrial marketing plan. 2. Energy City Activity...Mark your calendars for attending the dedication and open house for the Elk River Wind Turbine, scheduled for Thursday,April 19 from 2-4 p.m. at the Turbine on 225th Avenue. It is anticipated that Governor Ventura will be attending and speaking. The wind turbine is a highly visible statement about the City's goal to demonstrate and promote renewable, efficient, and economic energy technologies. 3. Strategic Industrial Marketing Activities...The two sub-planning processes of the Strategic Marketing Plan will be complete within the next month— 1) Customer Service/Industrial Siting&Expansion Process and 2) Communication&Brand Plan. Duckor&Associates will present the results of the Customer Service/Industrial Siting& Expansion Process at the May EDA meeting. This process has been completed over the last seven months and has involved valuable time and • participation from nine departments. Also at the May meeting, staff will present the new economic development marketing materials that have been developed as a result of the Communication&Brand Plan. • 4. Business Park Zone Issues...Staff has received a request by Rick Martens, Brookstone, Inc. for the Planning Commission's consideration of the attached recently revised business park design standards. The primary items of concern include the percentage of warehouse space allowed without conditional use permit, and the limitation on concrete panels. Mr. Martens has been invited to present his concerns to a Planning Commission work session that would be held,Tuesday,May 8`h. EDA members will be invited to attend the work session since the EDA was instrumental in designating the original business park zone and specific areas of the community. Specific policy issues could then be discussed at the May 19th regular meeting if necessary. Of note, objectives adopted within the Strategic Industrial Marketing Plan are to establish the City of Elk River as the hub of light manufacturing firms in the northwest metro by 2005,and to build-out the East and West Business Parks with a range of building sizes that meets the City's design standards by 2010. According to the business park ordinance, the intent for the business park district is "to encourage businesses which generate a high number of jobs per square foot rather than predominately warehouse type uses." 5. Feature Article...Elk River was recently featured in the attached online exclusive article of Plants Sites and Parks Maga<ine(February,2001). The article features Elk River as a case study example of new industrial development occurring in third-tier Twin Cities suburbs. The article also includes a testimonial from SoftPac Industries, • Inc. in Elk River. The magazine's website is located at www.bizsites.com 6. Related Article...Attached is a copy of the online article from Site Selection magazine, March 2001. The article summarizes the results of a national survey of municipal economic development officials regarding their process for evaluating economic development project impacts. Of particular interest is the rating of key location factors sited by corporate real estate executives and how economic development officials rate the advantages of their community's business advantages. Comparatively, the Strategic Industrial Marketing Plan sites Elk River's business location advantages as the City's strategic location between Twin Cities and St. Cloud (proximity to customers/clients), available land,comprehensive financial package, confidential site selection services and customer-driven professional staff. 7. West Business Park Progress...SoftPac Industries has recently moved into the offices of their Elk River facility. Once the processing equipment is received and tested,production is anticipated to start in September/October. Track of the Wolf and Integrated Power Solutions is anticipating moving into the new Ripplinger/Norha buildings in May. Additionally, final construction on Business Center Drive is anticipated to begin in May. Staff is continuing to pursue a joint marketing agreement with the owners of the Gagne property. Staff also continues to work with United Properties in drafting • conceptual plans for the development of the 80-acre Wilson business park property. { ri • EKONOMIC TEVELOPMENT +,QiI IER1RTMENT ANNUAL REPORT 2000 • Mission Statement Elk River "A historic river community serving as a regional center with a favorable location near the Twin Cities metropolitan area" Our mission is to actively participate in economic development by utilizing available resources to leverage viable and healthy investments in our community. Such investments will create diverse job opportunities as a result of a stable and growing business and industrial base. We will strive to provide quality services,maintain a favorable tax rate, supply full-cycle housing options for our residents, and foster an environment that will result in substantial growth of our local economy. at 110 � DEPARTMENT tL TAFF Catherine Mehelich June 2000 Director of Economic Development Executive Director, Economic Development Authority Executive Director, Housing& Redevelopment Authority Marc Nevinski May 1999 Assistant Director of Economic Development Paul Steinman Director of Economic Development 1996—1/2000 Support Staff Alice Heinecke, Executive Secretary Tina Allard, Secretary • • • Z1E1R IN iEVIEW TAX INCREMENT FINANCING A revised Tax Increment Financing policy was adopted by the City Council in March. The revisions identified minimum requirements for the use of TIF and incorporated provisions of the new business subsidy law. The only new TIF district created in 2000 was TIF 21 for the Opus/Softpac project. The pay-as-you-go district will write down the $700,000 land costs associated with the project over a period of eight years. TAX REBATE FINANCING Also referred to as tax abatement,Tax Rebate Financing (TRF) is a relatively new economic development tool. The mechanics of the tool are similar to TIF in that tax dollars can be used to pay for development costs. The primary difference is that each government entity elects to rebate its portion of the project's taxes. Subsequently,TRF generally results in fewer dollars for a project than TIF,but allows for greater flexibility in the application of those dollars. In April the City Council adopted Tax Rebate Financing policies,which set parameters for its use and incorporated the required provisions of the business subsidy law. Upon • recommendation from the EDA, the City Council also authorized the use of TRF in the construction of an 18,000 sf multi-tenant industrial building in the McChesney Industrial Park. Sherburne County also participated in the project. ECONOMIC DEVELOPMENT MICRO LOAN PROGRAM One micro loan was made in 2000 to Ultra Image Powder Coating. The loan was set up as.a participation loan with the First National Bank of Elk River and was used fora building expansion and equipment purchase. The lawsuit with Northstar Diecasting was also settled in 2000 when the company agreed to pay $1000/month for 36 months. The loan fund ended 2000 with a cash balance of$442,528. BUSINESS INCUBATOR In early 2000,Watermark ceased operations and vacated its suite. Also in 2000 SolarAttic, due to vacancies at that time, entered into a twelve-month market rate lease with the EDA for its existing incubator suites. The company vacated 2500 sf of manufacturing space in December of 2000, but will remain in its smaller office space until April of 2001. Two new companies signed leases for incubator space in 2000. Vertical Publishing,'which provides an internet presence and archiving service for small publishers and trade magazines leased 2200 sf. Integrated Power Solutions,which has developed a manufacturing process for a solid state battery that can be integrated into the circuitry of any electronic device,leased 1500 sf of space in the incubator and plans to move into market rate space in spring of 2001. • MARKETING ACTIVITIES • Strategic Industrial Marketing Plan In the Spring 2000 the EDA hired Duckor&Associates, Inc. and appointed a seven-member taskforce to complete a Strategic Industrial Marketing Plan,which was adopted in June. The three-year plan outlines activities necessary to attract and grow light industrial businesses. Staff began implementing activities within the Plan including identifying key accounts and compiling a site inventory. Customer Service &Siting/Expansion Process Plan Providing exceptional location site services is key to expanding Elk River's industrial base. Duckor&Associates, Inc. began facilitation of a Customer Service and Siting/Expansion Process Plan with key staff persons who are involved in industrial development projects. Completion of the Siting/Expansion process is anticipated for Spring 2001. Communication Strategy &Brand Plan Duckor&Associates, Inc. began facilitation of a Communication Strategy and Brand Plan with a staff taskforce in Fall 2000. The tagline "Light Industrial Hub of the Northwest Metro"was selected to position Elk River within the industrial business and real estate development community. The Communication Plan is anticipated for completion in 2001 and will result in the creation of coordinated and professional promotional materials and messages. In October, the City of Elk River participated with the MN Department of Trade and Economic Development in the recognition of MN Manufacturers Week. A tour of Aggregate Industries, Elk River block plant was sponsored by the EDA. • Holt&Jackson Development The City approved a proposal from H J. Development, L.L.P. in October to purchase the city- owned Holt&Jackson site for$350,000. H.J. Development submitted development plans to construct a 14,000-square foot multi-tenant retail facility on the site. The tenants of the facility will include a day spa, upscale meat retailer, and coffee shop. Closing of the land sale and construction of the project is anticipated to occur Spring 2001. CENTRAL BUSINESS DISTRICT ACTIVITIES King&Main Development The Housing&Redevelopment Authority considered four proposals for the development of the TIF No. 16 King and Main redevelopment site. The HRA selected the proposal by First National Bank of Elk River,N.A.,who offered $175,000 for the site. Construction of a 25,000-square foot office building began in November and completion is anticipated for June 2001. The sale proceeds and tax increment generated by the new construction will reimburse the HRA for the initial acquisition, demolition and cleanup of the redevelopment site,which occurred in 1996. Downtown Redevelopment Plan Authorized In October the HRA and City Council held a worksession to discuss future central business district redevelopment activities. Design for the replacement of the "red" sidewalks was discussed for construction in 2001 in conjunction with Municipal Utilities electric line relocation project. The HRA authorized staff to complete a downtown redevelopment plan • to provide direction for future redevelopment activity in the CBD. The Redevelopment Plan • will include an inventory of properties and constraints,visioning process and an implementation plan. Completion of the plan is anticipated for Fall 2001. Jackson &Main St Property In May the EDA transferred its Jackson and Main Street property to the City of Elk River in order to preserve the site for green space within the downtown. BUSINESS PARK DEVELOPMENTS West Business Park (EDA property) The EDA approved a proposal for the development of its Joplin Street property by Gary Santwire/Rivers Crossing, Inc. The development includes the construction of two 22,500- square foot buildings. The northerly building, owned by Equity Management, Inc. (Linda Norha),will provide needed leasable light industrial space in the community. The southerly building, owned by David Ripplinger (Track of the Wolf, Inc.),will create up to 10 jobs at $10/hour wage. The EDA acquired the site in 1997 with tax increment finance revenues and contributed the land value and utility extension costs in an estimated total amount of $258,100 to the project. Opus Northwest, LLC./SoftPac Industries, Inc. (Emmerich property) In July the EDA approved a tax increment financing request from Opus Northwest, L.L.C. and SoftPac Industries, Inc. for the construction of a 75,000-square foot flexible pouch packaging facility. The City created Tax Increment Financing District No. 21 to provide $700,000 for the 14-acre land acquisition. The EDA had been marketed the site through a • joint marketing agreement since 1997. SoftPac Industries will create up to 60 jobs, paying minimum wages of$10/hour. Elk Path Business Center(Wilson propery) The City extended Business Center Drive to Waco Street and installed sanitary sewer, watermain, and storm sewer to service the Hoyt Partners property. The 80+acres of property was rezoned for Business Park and Highway Commercial development. Development by Allina Medical Clinic is anticipated in 2001. Elk River Business Park Groundbreaking for the construction of the first of several buildings planned for Elk River's East Business Park was held in September. The initial building will be a 52,000-square foot light industrial facility. The project is a development between Amcon Construction, Brookstone, Inc., and Fischer Sand and Aggregate Co. A total of 40-acres is included in the business park that is located off the newly constructed Twin Lakes Road. • EPI1RTMENT GOLS FOR 2001 The City of Elk River Strategic Industrial Marketing Plan that was adopted in June 2000 outlines the following major goals and activities for 2001: Product Offering • Develop attractive signage for East/West Business Parks • Develop East/West Business Park Fact Sheets • Establish joint development agreement with Gagne and Wilson • Utili7e GIS (Geographic Information System) to manage commercial/industrial land and building inventory • Utili7e City of Elk River's brochure and fact sheet • Develop strategy for marketing/development of EDA (Brown) property II. Product Delivery Process & Client Service Strategy • Complete and implement Customer Service and Siting/Expansion Process Plan • Develop roles &responsibilities of process participants • Design and develop proposal prototype • Select and install a software account management system • Develop a "How to do business with the City of Elk River"guide • • Conduct project update meetings as needed III. Marketing Strategy • Research and gain working knowledge for Industrial Machinery, Fabricated Metal and Electronic sectors. • Acquire working knowledge for all state,regional and local economic development programs,products and services IV. Key Account&Lead Generation Strategy • Meet with identified key accounts on a regular basis V. Pricing Strategy • Revise funding policy and application forms to beconsistentwith new communication design and format VI. Communication,Promotion, and Advertising Strategy • Revise and update Web site to be consistent with new communication design and format - • Complete and implement Communication Strategy and Branding Plan • Place advertisements in trade journals • Conduct groundbreakings and grand openings for businesses • Participate at D lED's Manufacturer's Week to showcase local firms • • V EPIRTMENT GOILS FOR 2001 The Strategic Industrial Marketing Plan will assist the City in addressing the major issues and goals identified in the City of Elk River Economic Development Strategic Plan (revised 1999). The Economic Development Strategic Plan includes the following major goals: I. Industrial Base • Attract new business to increase the city's industrial base II. Business Retention and Growth • Retain and grow the city's existing business/industry III. Marketing Strategy • Create and implement an industrial strategy to develop the city's business parks • IV. Develop/Redevelop East Highway 10 and the Central Business District • Undertake activities that facilitate development/redevelopment on E. Hwy 10 and CBD • Develop criteria for designating redevelopment areas • Complete analysis and Redevelopment Plan for the Central Business District to guide future redevelopment activities • Identify redevelopment areas • Complete sidewalk improvement project 1111 O Z 0 CCo - 4kliftfl ''-:* riirdik'101::-.P-r- --'-'41-://ippl 0.—_------10,L lipi e.iriii,,,,ow__,-,.. -,,...•-- Ell . w -.,. ,� Q i, :1;dlir....71 1,A.112‘14: : 111P:dikA14 \I 113°F v V . ,;,.,. -.. *4,..,_... p ' itiAtimi g., , ,,,..._ IIIRSV?,..y t .-.4 ►CC \ 1 i \cam n s if iii 1 z z I�'Yr,- r O.- R 5 k § ' 5 g I 1/� �� 1 Jaue I�YOP + �i Lit ,� :, 1.11 ‘ 11,g ''' ;','-::::.;'!i'ss CD \\ aiV:vt` 1 0 g i 1 . 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''''''': _ mal , 11111111111.061.00.0.41 111, 711414., a 1114111.APPN .. , 1.4 �t '"ter- `: �s , ,t, S a-�^° ,_ ,,,_,, A Fte4v,z4i Elk riimmi Elk River River of Growth The Light Industrial ,_: • u at ECk R V �^x"J' 'O'� ��Zub In The Northwest is anything, it is a confluence of histories. around 2,000, the same size it was just From Dakota and Ojibwe nation skirmishes Twin Cities , after the Civil War. Part of the reason for'' the rapid growth,according to Nevinski,is in the late 1700s to industrial park develop- ..---. .--;,-,9.,9 , -�Y # ments in the 1970s, Elk River is a veritable k k 4n , due to recreation. r M brit k 'Elk River is on the way to where people time capsule of Americana.Nestled between z +rte� � forested hardwoods and prairie along the j :3'ice v go to relax,"he said."U.S.10 and U.S.169 Mississippi and Elk Rivers, the city, eight 4' i 3 r� carry a great deal of traffic.The city is on the way to Brainerd and the cabins up north.And miles north of 1-94 and just minutes from1-1;g1,,,47,"1",71 � .�-� � ��'° ',' it doesn't hurt being just eight miles north of Minneapolis, is a blend of both rural it,. America and commercial convenience:But " '% I-94,which links us to the Twin Cities.The �� commuting advantage of working in Elk River much has changed since David Faribault r' % ",. : s '�.' versus the Twin Cities is the`reverse'com built the first trading post on one of the ' x town's bluffs in 1846. aY mute.It's a much easier drive for commuters '# ., coming to Elk River than it is driving into the "We're growing at a solid four percent aa # �� year," said Marc Nevinski,the city's Assis- i 7 ,- , r -; Cities." tant Director of Economic Development. k Of course the close proximity of the Twin "We've seen a considerable amount of resi- _, � ' Cites to Elk River is another reason why com- r panies are flourishing in the historic town. dential and commercial development in the 7, past decade or so.To balance that growth, r Manufacturers can get supplies from metro h council and EDA (Economic Develop- "„' vendors in same-or next-day deliveries to c.-11-,,:- the p ment Authority)have taken steps to increase reduce customer turnaround times. "Elk industrial development in the city.” River,"Nevinski said,"is fast becoming the light Nevinski cites the zoning of over one hundred To St.Cloud industrial hub in the northwest metro area. and fifty acres as business park,the creation of a "We did a business survey last year. One of diktrategic economic development plan,and the es- the things that our businesses consistently noted ablishment of a location site process plan to was Elk River's excellent access to vendors and better serve the city's industrial clients. Elk River 9 services in the Minneapolis-St. Paul area.Addi-• "The goal," Nevinski said, "is to make the de- tionally,we have a lot of those services right here velopment process as smooth as and seamless in Elk River. Tool grinders, hardware stores, of- as possible for businesses looking to locate here." J fice supplies,printers and publishers,quality ven- In 1872, the village of Elk River incorporated / - m dors so that businesses here don't have to keep and became the county seat. A little over 100running into the Twin Cities-we're getting a nice 10 1 years later, Elk River consolidated with the sur- group of businesses that serve one another." rounding township, creating a city of 44 square ElkRiverislneuted D only tlHrtV minutes .q✓,���W �� �T miles-one of the largest in the state. The town f'nm tde Turin Cities , witnessed some moderate growth in the 1970s, :9 In In the 1970s,the city developed the Elk River but nothing like the influx of residents in the'80s. Industrial Park not far from the center of town, 94, "We have the residents and all the amenities- St Cloud a conglomeration of industries on sprawling, Elk River. Mimieapolis/ the retail shops and restaurants-and now we're Minneapolis SLPauI well-manicured lawns.Though the plan eventu 5w allycalled for the cityto take over the park,the looking to expand our industrial base.And that's St.Paul r x been happening," said Nevinski, who in addition 1 city had yet to establish an economic develop- to Catherine Mehelich, the department's di- ment authority. Thus, the park was devel- rector,comprises one half of the city economic oped by a local development corporation of - development staff. The city's staff also in- Marc Nevinski,and Catherine Mehelich , over 100 Elk River citizens. One of the ma- cludes a financial director, a three-person (Economic Development Staff), .`�;,; ,* O. players in Elk River development has al- planning department,a sixperson inspections ..,: g!s!; ways been First National Bank of Elk River ;r. president and CEO Dick Gongoll. • department and a public works staff. In addi- - ..! .' tion, the city has a 30-member police force -.410-:,,\.,:'..,,,,, ' .�` ,., "One of our goals as a community was and a volunteer fire department that includes 't` �'....'' 4' to try and provide work here so people didn't • 'l have to commute," Gongoll said. "It's also ea full-time fire chief. .41r', �.hi. .. ,' • im important in Minnesota to have a good With a population of close to 18,000, Elk r:. ‘,/ p com- River is projected to exceed 20,000 in 2002: .] ' mercial base because of the tax structure- ;-• � -" ... That's unprecedented growth,considering that , — 4,;,-,-"--,7-,-,-4:4Y-_-!,1 -•. , we can better support our schools that way. in the 1970s the population of Elk River was "" _ • fi ! e�. .:.r '_ "We've been fortunate to have people ,� ' -_ .- companies such as Elk River Machine in our community who are aggressive in e �.1 i' 1 ' . M _-Li-:' Company and Metal Craft Machine & Er� those areas,and we got together with our - -..:21-�i ) ., ,..war,-; ---" gineering are strong representations of friendly competitor,the Bank of Elk River, 1 what the city is trying to bring to its indus- for some of the financing. We wanted to trial base. make Elk River a shopping area, a desti- Workforce issues are a concern for all nation area as opposed to a drive-through businesses in today's economy. However, town." ' "`- ' the Elk River area appears to have a high , Mission accomplished. Gongoll and concentration of skilled labor. "We seem others got their growth, and then some. 't-,--------;;-",-,---- :',; • to have a large pool of people in the area "I believe the growth happened a little v n with trade skills," Nevinski said. He also faster than we projected,"Gongoll said."Our '„1 5� U�!I noted that Elk River firms pull people from residential growth has precipitated our retail '"°!j = ; the Twin Cites, St. Cloud, and even from • sector,and now we're working on stimulat- `.-A more rural areas of the state. ing our industrial base.But overall,I'm very The breakdown of the city's industrial pleased with our strong and vibrant econ- -...0 _,-�h--s,,, 2�-` _ , ., .. base bears this out.The number of Industrial omy." machinery-related companies has reached Besides his bank'duties,Gongoll is one of - 18 while the mineral and rubber-plastic in- five governors of the Elk River Investment • dustries take a distant second with fourcom- Club,an LLC of 22 members.One of the chief _ t.' panies each.The industrial-machinery cat- goals of the club is to work with the City of Elk egory also leads in the employee category River in getting new companies into the city's �fl THE C ETES COMPANIES,INC with 28 percent of the industrial workforce, incubator program. - followed by the fabricated metal and elec- "Wetrytocoordinate,"Gongoll said,"ours tropic equipment sectors with 22 percent efforts with the city to help emerging busi- ,7:41 each.Mineral employment accounts for 15 nesses get out of the garage,so to speak, ret: 7 -e,-,-,'.2. ,,� percent of the workforce while rubber-plastic and into the incubator program.Currently the " t; f{ k. employs nine percent. All club is working with four or five businesses a � r But those numbers will soon turn old. at this time. Our club gets a commitment balance residential and retail growth,the city from the proprietor that his or her business iii created two new industrial parks,appropri- will remain in the incubator or at some loca- _ ately dubbed the East and West Business tion in Elk River.It's venture capital that's for -K Parks. Phase I of the East Park,a 40-acre businesses looking to grow in Elk River." 4+ -, tract that will include a 50,000-square-foot When the city did take over the business � ' - � , multi-tenant building,will have access to a park,there were approximately half a dozen ' four-lane industrial grade road.The park is lots still available.That park was fully built '''Ill .--: n� also bordered by U.S.169 and the Burlington out in 1999 and is home to companies such j 2'.. Northern Railway.Adjacent td the 40 acres as the Tescom Corporation(high purityand . -, �_- lies another 90 acres which will be Phase •P ( 9 industrial controls),Alltool Manufacturing :....,,,t„,,,,, ,,,,,,,„„ II of the East Business Park. Just to the (metal fabrication),E&O Tool&Plastics(plas- • , .1' - : . 'u �.. south of Phase II, across 173" Street, is tics)and the Custom Conveyor Corporation the site of the proposed North Star Corri- (conveyor equipment).And there's the Cretex s 1 r`,� I ,: ,t dor Station,a depot that will run from Rice o Companies Incorporated,makers of concrete l,f _ (north of St.Cloud)all the way into the Twin girders for bridges and culverts, a corn- ,S 'i �. Cities. pany that has stayed in Elk River and has if' ao o � la� I "The commuter line will connect with the �`�12 ACRESF thrived, and a variety of other industries. ! light rail system in the Twin Cities," East on U.S.10 is the Horizon Thermoform ,1 - - . _._ Nevinski said, "and run down to the air- Plastics Company that moved to Elk River s /r. port,eventually going into St.Paul and the in August of 1998: In two years it has ex- ,. ACRES r ( outlying suburbs. Right now we have a anded its workforce to 30 and projected ! double track that runs through town that P sales are at two million dollars. Horizon is / , , _ , ', J averages 50 to 60 trains a day.We do have national in scope,serving customers from ' — '\ !-\. ' n a rail spur downtown, and some busi coast to coast. Horizon Thermoform and \ ,, ,. ., ____\. ._ 1- nesses have taken advantage of that." )I, `� ` y s , East`',Busi -ss P.. k �. \---r-,, a, Elk River 3 -c./ -N FRONTAGE ROAD S X 2000 CONSTRUCTION in Ell River „A ,_ 1...........1 The West Park features adjacent 20- _0 .. /c.., bills by 30 percent in Ohio and West Vir- a n 1 1, and 22-acre sites that run parallel to U.S. y ginia.We can also heat a swimming pool. •10. These sites, which stretch west to ?A ;, Ate_, for around ten dollars a month, as op- the Sherburne County Government Cen- Fes*�O _ posed to$300 a month for natural gas.” ter,have been roughgraded and the utili- 4 xk. rria � � 4a$ ties—gas,water and electric—are already ^. ' ,,resp in place. ,{ iv 4,,:�' West Business Park Yet the average cost of industrial On the other side of the Government = — _ - square footage in Elk River will hardly Center is an 83-acre tract scheduled to West Business Park detour a company from setting up shop. be ready for development in September "The price of industrial land here," of this year. Both the East and West Nevinski said,"is quite reasonable.From$1 to$1.20 per square foot, Parks sit on major transportation corridors, highways and rails that which includes the improvements. In some nearby areas, that price link the parks to the rest of the state and beyond. goes up anywhere from $2 to $3 dollars per square foot." Yet, there "These areas are zoned 'business park'and are ideal locations for are other incentives for prospective businesses. campus environments,"Nevinski said."The design requirements are a bit Financially, Elk River is competitive with other communities in the higher than the more established industrial parks we have, but trails, state,offering tax increment financing,tax abatement and sub-prime loans ponds and other amenities will be incorporated into the parks as they among other tools. develop." "We can also provide assistance to both new and existing businesses that qualify,"Nevinski said,"but we're careful not to overburden our tax- i...444444, ax- i. (*44 4. payers.Keeping taxes low is a priority of the council." Even though the city is looking more toward embracing the industrial company to take root and grow within its corporate limits, its arms E4,44.sy, e,;X,y, have and will spread wider. Another drawing card for the city is its"Energy City"designation by a "Though we've leaned toward more of the machining,metals and com- state organization called Energy Alley.Conservation,innovation and de- puter-electronics companies,"Nevinski said,"we're looking for viable cades worth of just saying no to pollution has polished Minnesota's emer- companies who are looking to stay in the area once they become estab- aid city as it strives to keep"green." .lished.Companies who will create good wages and make capital invest- In 1998,the Environmental Protection Agency awarded Elk River its ents—we're certainly open to meeting with them in the hopes of inviting Project of the Year for the city's flame that burns off methane that forms them in."Sometimes that means helping companies establish themselves, inside landfill berms;and city environmental-energy leaders meet monthly nonbankable companies who are looking to go public.Candidates forthe with state energy leaders in discussing energy matters since the city is city's incubator program are chosen by the Economic Development Au- the state focal point for new energy technology and services.These"en- thority. ergy talks"often produce award-worthy innovations such as"energy "We're not necessarily targeting new manufacturing companies forthe houses"that feature a dozen or so energy technologies in each house. incubator," Nevinski said, "but companies offering high-tech prod- Energy House I,for example,uses a geothermal pump for heating and ucts or services."The EDA leases the incubator building at a low per- cooling the interior of the home,using the constant temperature of the square-foot cost.The space has been improved and divided into various earth below the frost line. suites.A company can pay a portion of its rent in cash,and the remainder Thecityisalsoreceive one of the largest wind generators in { setto ece g g of rent is bartered for stock. .the world.With a height of nearly 200 feet and blades with a diameter One company currently in the Elk River incubator is SolarAttic,a corn- of close to 180 feet, the wind turbine will generate enough power to pany that developed the technology to recycle the heat that gets trapped in run 250 homes. attics. "Environmentally,"said Stephen Rohlf,the city's building and zoning "We can take attic heat,"said company founder Ed Palmer,"and put it administrator,"Elk River has a reputation of being tough but fair.There's a back into the house to reduce heating costs. Or we can use it to heat lot of mineral mining going on just north of town.When a mineral contrac- swimmingpools or water.And when you take heat out of the attic,you tor was asked,in an environmental context,what the toughest city was won't have to run the air conditioner as much in the summer."While he'd ever worked in,he said Elk River.And when he was asked what his developing his energy-saving technology,Palmer worked out of his ga- favorite city to work in was,his answer was the same—Elk River.That's rage for years, slowly refining the idea since June of 1984. In August one of the more honest compliments on our city that I can remember." of '86 Palmer began working full time on his concept, and now he's Minutes from the Twin Cities yet far enough away to have maintained taken it a step further by working out of the city's incubator. its small-town character,Elk River still offers both industrial and high-tech Ed Palmer on the Elk River Incubator:"It's been extremely helpful—it got opportunities to companies looking to expand or establish themselves. us out of the garage.The incubator gave us a commercial opportunity where customers and investors can come out and see our products and *� .ur small manufacturing facility. People are a little weary about driv- y„ ng out to someone's garage in a residential area. It's given us a big Elk River boost in driving us forward." SolarAttic pool systems are currently used in 33 states, and the 13065 Orono Parkway Elk River, Minnesota 55330 attic units in 16. TDD & Phone: 763-441-7420• Fax: 763-441-7425 "The attic unit has proved," Palmer said, "to cut annual heating www.elk-river.mn.us REPRINTED FROM Business&Industry MAGAZINE • (7) That the proposed dwelling unit meets all other requirements of the City Code and Uniform Building C de for occupancy as a dwelling unit by a single f .mily. The City Council may, if it finds it necessary to do so for the protection of the health, safety and welfare of persons who may occupy the proposed dwelling unit, impose additional reasonable requirements or conditions on the construction and use of the dwelling unit. (8) That the conditional use allowing such a dwelling unit in an industrial zone is deemed to be unique to the principal use of the property and the ownership of the property and the principal use. Any conditional use permits granted under this Section shall therefore automatically expire if the principal use of the property changes or the ownership of either the property or the principal use of the property changes . xiii. Temporary structures xix. Government buildings and facilities • xx. Mini storage xxi. All uses allowed as a conditional use in the Il zone 16 . B-P Business Park District STATEMENT Ur + =• nes Park District is established to encourage a planned, integrated environment for certain industrial, office, and commercial uses which are compatible with, and compliment each other as well as the surrounding land uses . The underlying land use designation within the district may vary, either light industrial or highway business . Development within the Business Park district will correspond with the land use designation. Industrial and office uses allowed where the land use designation is light industrial, and commercial uses allowed where the land use designation is highway business . It is the intent of this ordinance that development reflects common themes using compatible architectural design and consistency in signage, landscaping, and lighting. It is also the intent to encourage businesses which generate a high number • of jobs per square foot rather than predominately warehouse type uses . A. Permitted Uses 9.40 ' ' IIIi . Permitted uses allowed when the underlying land use is light industrial : a. Light Manufacturing b. Research and development laboratories c. Government, business, and professional offices d. Mail order operations e. Telecommunication operations f. Sherburne County fair ii. Permitteduses allowed when the underlying land use is highway business : a. Health athletic clubs b. Personal service establishments c. Financial institutions 4 B. Accessory Uses: i . Off-street parking lots or facilities ii. Private recreational facilities iii. Public shelters and essential services Conditional Uses: 41110 51 i . Conditional uses allowed when the underlying land use is light industrial : W9/1"/ a. Any permitted use which involves more than 30% warehouse space b. Vocational, technical and trade schools c. Multiple buildings on a lot 7 ' . - - .. ' . . e. Above ground storage tanks - ii. Conditional uses allowed when the underlying land • use is highway business : - - -___. a. Hotels and motels 9.41 r b. Licensed day care facilities • c. Retail shops and stores which compliment and serve the Business Park subject to the standards set forth in 2 (j ) below. d. Motor vehicle specialty service stations e. Multiple buildings on a lot f. Multiple tenant buildings g. Restaurants (Class I) STANDARDS: A. Minimum lot size - one and one-half (1 1/2) acres B. Building setbacks (minimum) i . Front Yard —Thirty-five (35) feet, or one-half (1/2) the total building height whichever is greater. ii. Side Yard - Twenty (20) feet, or one-half (1/2) the total building height, whichever is greater. iii. Rear Yard - Twenty (20) feet, or one-half (1/2) • the total building height, whichever is greater. iv. All setbacks shall be determined from the planned right-of-way (ROW) , as designated in the City, County, or State Transportation Plan, and normally defined in the subdivision regulations . C. Parking Lot Setbacks (minimum) i . Front Yard - Twenty-five (25) feet. ii. Side Yard - Twenty (20) feet. iii. Rear Yard - Twenty (20) feet. iv. All setbacks shall be determined from the planned right-of-way (ROW) , as designated " 1 the City, County, or St to Transportation Plan, and :. armally defined in the s _odivi.sion regulations . D. Loading Spaces/Overhead Doors i�Q�' i. Loading spaces/overhead doors shall be located a7 primarily in designated rear yards and secondarily in Q 9.42 designated side or front yards as approved by the 111 Zoning Administrator. ii. Loading spaces and overhead doors should be designed to be compatible with the principle building. Architectural techniques should be employed to reduce visual impacts from adjacent properties and roadways. E. Dumpsters/Refuse Enclosures i . All dumpsters shall be completely screened from public view by using enclosures constructed of similar material as the principal building. ii . Refuse enclosures shall include gates and be located in designated rear or side yards . F. Roof-Top/Ground Electrical Equipment All utility equipment shall either be: i . Screened from the eye level view of adjoining properties by use of exterior wall (s) and/or landscaping; or, ii. Painted to match or complement the building • structures; or, iii. Incorporated into an architectural design, as approved by the Zoning Administrator. 411, Architectural Standards i . Major exterior surfaces of all walls shall be face brick, stone, glass, stucco, architecturally P treated concrete cast in place or pre-cast panels, decorative block, or architectural metal, or approved equivalent, as determined by the Zoning Administrator. H. Landscaping i . Not withstanding the provisions of Section 900.30, the following requirements shall be met: a. Of the total number of overstory trees required, a minimum of twenty-five percent (25%) shall be ornamental trees and twenty five percent (25%) shall be conifer trees. b. A landscaping credit of up to twenty-five percent (25%) may be given to a site plan which III contains exterior sculptures, fountains, ponds beyond those required for storm drainage and 9.43 other site enhancements as approved by the Zoning Administrator. c. Underground irrigation shall be installed within the front yard and all landscaped areas adjacent to a public right-of-way. I . Signage i . Not withstanding the provisions of Section 900.22, the following requirements shall be met: a. All freestanding signage shall be of a monument style sign and have a maximum size of sixty-four (64) square feet and height of eight (8) feet. b. One (1) on-premise business wall sign per occupancy, not to exceed two (2) square feet in sign area for each linear foot of the building frontage up to a maximum of one hundred and twenty-eight (128) square feet per occupancy is permitted. J. Standards for Retail Shops and Stores i . Freestanding retail shops and stores shall be • limited to those which compliment other uses within the business park, provide a service to those other businesses, and shall not exceed 20, 000 square feet in size. ii. Retail/wholesale sales incidental to products manufactured, assembled, or warehoused on the premi_es, may be permitted as an accessory use provided no more than ten percent (10%) of the building is used for retail/wholesale sales. K. Hazardous Material i. Any business which involves the handling or storage of hazardous material shall provide data information sheets to the City for review and receive appropriate permits from applicable agencies . 1? PUD Manned Unit Development District ATEMENT OF PURPOSE: The purpose of this district is to provide ot: ,ortunities for creative development and design flexibility by al ?wing modification of lot and building area, width, setback an(.. other dimensional requirements . PUD's shall be developed in accordance with a Concept Plan and a PUD Development Plan, and in ---- • . accordance with this Ordinance and the City Subdivision Regulations . A PUD shall be consistent with the intent and 9.44 • ORDINANCE 00- 16 CITY OF ELK RIVER AN ORDINANCE OF THE CITY OF ELK RIVER AMENDING SECTION 900.12(16) OF THE CITY CODE OF ORDINANCES CASE NO. OA 00-7 The City Council of the City of Elk River does hereby ordain as follows: Section 1. Section 900.12(16)(C) titled, "B-P Business Park District— Conditional Uses, of the City of Elk River Code of Ordinances shall be amended to read as follows: Conditional uses allowed when the underlying land use is light industrial: c. Loading areas/overhead doors when located in front yards. ii. Conditional uses allowed when the underlying land use is highway business: e. Loading areas/overhead doors when located in front yards. • Section 2. Section 900.12(16)(D) titled, "B-P Business Park District— Loading Spaces/Overhead Doors, of the City of Elk River Code of Ordinances shall be amended to read as follows: Loading spaces/overhead doors shall be located in designated rear yards and secondarily in designated side yards. Loading areas/overhead doors shall not be located in designated front yards unless approved as a conditional use. Loading spaces and overhead doors shall be designed to be compatible with the principle building. Architectural techniques and landscaping shall be employed to reduce visual impacts from adjacent properties and roadways. Section 3. Section 900.12(16)(G) titled, "B-P Business Park District— Architectural Standards, of the City of Elk River Code of Ordinances shall be amended to read as follows: i. All buildings shall be constructed of material listed as either Class I or Class II materials. At least 60% of each building wall facing or visible from a public right-of-way, other public property or residential district must be of Class I material. Portions of the building not facing or visible from a public right-of-way, other • public property or residential district may be constructed of a greater percentage of Class II materials, not to exceed 60%, if the structure otherwise conforms to all City ordinances. If a wall is s:\planning\scott\ord00-7.doc . visible but not facing a street, residential district or public facility, the developer may use the greater percentage of Class II material provided the wall is screened from view. The mixture of building materials must be compatible and integrated. Class I Materials Brick, marble, granite or other natural stone, textured cement stucco, copper, stainless steel, porcelain, glass and integral colored split face (rock face) block. The building face may not be comprised of more than 50% integral colored rock faced block or stucco. Class II Materials Exposed aggregate concrete panels, burnished concrete block, exposed aggregate concrete block, architecturally treated cast in place concrete panels (smooth or raked faced panels are not acceptable), artificial stucco (E.I.F.S., Drivit), artificial stone, pre- finished architecturally detailed metal and wood, provided the surfaces are finished for exterior use or wood of proven exterior durability is used, such as cedar, redwood or cypress • Section 4. That this ordinance shall take effect upon publication as provided by law. Passed and adopted by the City Council of the City of Elk River this 18th day of September, 2000. 6KR Stephanie Klinzing Mayor Gt-,,.���;• �-�' . /_,Z�-mac Sandra A. Peine City Clerk • s:\document\ordinance\oa97-1.doc WebXtras- The Road to Alpharetta Page 1 of 2 • Online exclusives for bizsites.com Beyond the Twin Cities Open Land in the Outer Ring; Third-Tier Suburbs Boom By Michelle Porter, Online Editor Ten years ago, most new industrial development outside Minnesota's Twin Cities went to first- and second-tier sites such as Minnetonka, Plymouth, Roseville, Eden Prairie, New Hope and Bloomington. Now that land is scarce and more costly in the St. Paul/Minneapolis CBD, communities in third-tier suburbs are becoming more attractive to businesses locating in Minnesota. Industries building space-hungry facilities are finding cheaper, more plentiful land and more affordable buildings in outer-ring suburbs such as Cottage Grove, Elk River, Rogers, Savage, Champlin and Chanhassen. Plenty of elbow room Interstates 494 and 694 run a circle around the entire Twin Cities area. North and south is bounded by Highway 35 East. The west is bisected by 1-94 and 694. • Within these boundaries is the CBD of St. Paul/Minneapolis, including first- and second-tier suburbs; outside lie the third-tier communities. Two distinct types of companies are building in the outer ring, says Bill Ritter, senior vice president of industrial brokerage with Welsh Companies, a real estate group. "One type tends to be very large warehousing or distribution companies that require space of 100,000 square feet or more," Ritter says. "It's the new breed of distribution center with 32-foot clear height, VSR sprinkler systems and fairly substantial bay depths." This property is fairly new; none was built up until two years ago, Ritter says. "In third-tier suburbs outside the ring, developers are able to build specifically what the end-user is looking for." Light industrial or high-tech manufacturers that have very large spatial requirements are also choosing to locate in the outer ring, Ritter says. C-Gate is one example. When the California-based hard disk drive manufacturer was faced with consolidating operations in Minnesota, the company chose Shakopee, a third-tier suburb near the company's Bloomington location. • "Land [in Shakopee] was available and priced accordingly, the highway infrastructure systems were in, taxes were low, and it was close enough to their other operations that they didn't have to concern themselves with loss of employees," Ritter says. http://www.bizsites.com/webxtras/twincities.html 4/5/01 WebXtras - The Road to Alpharetta Page 2 of 2 Case study: Elk River • "There are very little economic assistance incentives available to businesses in the state of Minnesota," Ritter says. "It's all dependent on how far you're willing to go." Outer-ring communities that own business parks are attempting to attract businesses to relocate to their community by offering incentive packages of little or no-cost land, Ritter says. Elk River is a third-tier suburb located on four-lane Highways 10, 169 and 101 that offers work force development assistance and affordable land prices---at $1 to $1.20 per square foot. The city also offers tax increment financing, tax abatement and local sub-prime loans, says Catherine Mehelich, director of economic development for the city. More than 200 acres of light industrial business park space is available for development. SoftPac Industries Inc. is building a 75,000-square-foot manufacturing plant on a 14-acre site in Elk River. SoftPac manufactures soft, stand-up pouches for the food, beverage and health and beauty industries. The plant is expected to hire about 60 employees. • needs"Onewith reason weaccess choseto Elk River is10that it wit will ill sufficientlyserveas a servehalfourway point transportation , easy Highway , and between our Foley plant and corporate headquarters in Plymouth," says John Dennis, SoftPac's vice president of operations. SoftPac is planning future expansion at its Elk River site. "We are currently using about one-third of the 14-acre lot with hopes of growing to as much as three times our current plant size," Dennis says. Developing a skilled work force is one problem businesses often face when moving to an outer suburb. "Most recently, we have been working with a company that is in need of over 100 people skilled in fiber optics and photonics technology by year 2002," Mehelich says. But a high concentration of skilled labor is available in the area as a whole, Mehelich points out. "Elk River companies draw workers from the Twin Cities, St. Cloud and also outlying rural areas." I E . bine • Content Copyright©2001 Cahners Business Information. - Last Updated March,2001. http://www.bizsites.com/webxtras/twincities.html 4/5/01 How Economic Developers Evaluate Project Impacts - Site Selection Magazine - March 2001Page 1 of 6 Selection From Site Selection magazine, March 2001 MANAGEMENT STRATEGY HEconomic Developers Evalowuate Project Impacts t; by DR. THOMAS A. MUSIL A real estate professor's research reveals the other side of the -7444.tirriL;, coin -- how economic developers view new projects coming to , .w <their communities. nderstanding how cities view and evaluate projects is critical to developing more cooperative and insightful relationships between ar ,r� at�� t��ra � P $ P g p ' '' "" ""' �'"" your company and the communities in which you do-- and would ,� ' � �: i, a, � �c;:r p Y like to do--business. This article presents an overview of how public officials view and evaluate the community impacts associated with economic development projects. Data presented in this article is based on a national survey of municipal economic development officials working in • Ir,. U.S. cities with populations between 10,000 and 300,000. Research involved investigating the structure, subsidy determination, involvement of public and elected officials,the decision-making processes and the analytical methods used by the public sector to evaluate municipal-level development projects. Corporate site selection is a complex art and science. The skills required of corporate real estate executives and site selection specialists rival ! the skill level of almost any professional in the business world. The ability to weight correctly the complex interrelationships of location trade-offs, development incentives,community advantages,market limitations and .> municipal politics is no simple task. The site selection decision-making , T process is further complicated by the demanding requirements imposed by corporate management's goals and company strategic planning objectives. Perhaps the most challenging part of corporate real estate is negotiating with potential communities.Each location has a different array of benefits, ill incentives and amenities to offer the corporate citizen. Skills in limiting municipal exactions in project development or maintaining damage control in communities where your firm closes a plant or operation must be in place.As corporate real estate practitioners,we use a variety of impact-analysis tools to prove to http://www.siteselection.com/issues/2001/mar/p146/ 4/5/01 How Economic Developers Evaluate Project Impacts - Site Selection Magazine -March 2001Page 2 of 6 communities what good citizens we are and what benefits our firm has for the community. These analytical • tools include objective economic, fiscal,market value, infrastructure and environmental impact studies.But how does our public sector counterpart,the municipality, evaluate the benefits of your firm as a member of their community? Survey Respondents The research in this article is based on a national survey of municipal economic development officials regarding their views on and practices in municipal economic development. Surveys were sent to a random sampling of economic development administrators in 1,500 of the 2,600 U.S. cities with populations between 10,000 and 300,000. Slightly over 27 percent of the cities responded to the survey.The economic development administrators completing the survey were identified through the National League of Cities as having management responsibility for the economic development activities in their respective communities. The respondents to the survey fell into the following professional categories: economic and community development managers, elected officials and planning and zoning officials and individuals managing public development corporations. Based on population,the distribution of cities responding to the survey differed in composition from the actual distribution of U.S. cities. Fewer officials responded to the survey from cities with populations over 200,000 and from cities with 111' ' 1 1'"1I"1`11 'I`2 d Ii �'�Ilf.i.' ' na '.�)iali�t II" F}sarliw I ++I€I;�U populations between 10,000 and 24,999.Table 1 shows city of population ranges in relation to the actual composition of U.S. cities Pawl" I'P""66"W NOM or Now 32 22 and that of the survey respondents. *meanun as u *SUM 182 From the perspective of a corporate real estate executive or site °�A°�to r o to si a� selection specialist,the value of developing better relationships with *mow 111 and knowledge of public-sector economic development practices is '6"1""4"44''.4' 104P""*"" critical. More and more,municipal economic development activities are being reviewed(and criticized)by elected officials and citizens. From a corporate perspective,this results in site selection and expansion options becoming more constrained.For many projects,this public criticism will ultimately mean higher site costs and concessions on the part of the corporation seeking to locate or expand in a certain community. For some projects it will mean that the second or third most desirable location will have to be accepted. By developing a better understanding of public-sector economic development analysis and decision making, corporate real estate executives can identify and successfully address the most critical community and project variables surrounding corporate real estate projects. Municipal Economic Development Practices It is important to point out the type of community in which the survey respondents worked. Table 2 identifies the respondents'community " 'poll 1,1,11011111'1 type. Commeditt ,tf • The survey also considers the administrative setting where t Car • 14.11 municipal economic development activities are based. The value of igneriNalbeb Seceadllist Saes 111 this information is that an economic development agency's 70/40f0Ee su&aah 6.4/ http://www.siteselection.com/issues/2001/mar/p146/ 4/5/01 How Economic Developers Evaluate Project Impacts - Site Selection Magazine - March 2001Page 3 of 6 VIMorganizational setting can provide insight as to the public sector's a 4411.1 • views towards projects. Generally,we could assume that planning and Om$5444114041, as zoning officials are highly structured and quantitative in their do to opal te4 want Op do approach to projects and that economic development projects under their consideration should be highly consistent with comprehensive land use plans. The approach to economic development by planners can be described as the "rational model." Public officials working under the rational model can be obsessed with data collection and process related issues that could seriously delay a project. If an economic development department is independent of other municipal departments,then the underlying motivation toward projects and the reward structure would 11 be based less on the defined rational goals of a planning model and ' "n'�.t�l`ii ` '�o`i it i � '�'��''�''`' G Y �fi+ll.`ctlil 1,•I S1.'.C1ii:1 more on a definition of success determined by the number of sites r marketed and employers retained in the community.Accordingly, inkpwallent 144413344* *7 independent economic development departments can be perceived as Partonierr Di nttike-Proft 04330430333 Comas 4112 $1 more sales oriented in nature. DDNr Table 3 shows the composition of organizational settings for Famof cdas i economic development departments surveyed. DMleNCarried Oft Of Swint Onsrvemus U Over 73 percent of the economic development officials responding to the survey described their community as having '� 1 n° proactive economic development policies; only 26.5 percent of the respondents felt that their community's economic development policies were reactive in nature. Survey respondents were asked to rank general industry groups by the degree of importance to their IIIrespective community's economic base.Retail was the leading industry group with almost 84 percent of economic development chi. -r C:r1�}r_, I I llit �'•;ly imply rill' tLi, calling it critically important or very important to their economic base. Mud.. i Surprisingly,manufacturing(the industry group with the highest income multipliers for a community)was ranked third with only 73 kw ni percent referring to it as critical to or very important to their SerAcat 134133e144 813 community's economic base. Table 4 shows how other industries' Martsmosid KO fared in this area. Kiss 542 It is helpful to see how economic development officials rate the 744$144"4/444444/ 4" azi advantages of their communities in attracting new businesses.As a Ans e eigitaisardt point of reference on key location factors for corporate real estate *Won $3 executives, Table 5 shows the results of a 1993 survey by Conway 1 Data(Site Selection, 1994)that ranked overall key location factors. Table 6 shows how municipal economic development officials rated community advantages in terms of being very important in attracting new businesses and retaining existing businesses. ( t I: ;i E:1,iti� These surveys of corporate real estate executives and economic t t i i il. r 1 development administrators are not intended to be comparable. They �. were conducted at different times,on different groups and with L Amin*33444013Wow entirely different objectives in mind. However, some general um llrrataarreats statements can be made about the ratings of the two groups regarding A ommossaiskitt � oulise � location advantages. Public-sector economic development officials t AwarNiw i Th http://www.siteselection.com/issues/2001/mar/p146/ 4/5/01 How Economic Developers Evaluate Project Impacts - Site Selection Magazine - March 2001Page 4 of 6 tended to value the community advantages that are more illusive to 611ro1119q►raut Il towwobl000stor Moo • define and abstract in nature. Such highly rated community Ruswisietame MN advantages as quality of life, quality workforce,work ethic and good u. ClituraMiteibmittaii schools are hard quantify. On the other hand,coor rpate reaLestate executives were more concrete in defining community characteristics and corporate cost factors deemed "reasonable"that could be objectively compared between communities. What do the differences in the two location advantages list mean?Municipal economic development program administrators value and market what they have within their respective communities. They will of course respond to corporate �' f':i' '1.1110 1'4 1a11 11'r' 1;'1 E III' 111'.t#I:WI ieut Mir I ,x [WO Iflr Ifin� requests for information on the physical characteristics of sites, site [ nn:r,nl§itvt:tlltSf' I, .,r����r. t",E Ir°�I �t ownership, site costs and preparation requirements as well as local community, utility and transportation matters. However,economic I< ask*deb n development practitioners lack the ability to control their community's 2 021112Y Good fundamental economic factors,yet they were expected by their ' t * superiors and citizens to produce development results.Accordingly, a wardpactigion Koss CI economic development officials value and market their community's R regtonioneritols 4t benefits. The economic development administrator cannot make up r` Mon ot IL Public Wow 4 for their community's shortcomings but they can improve their a Cooter harry at community's image b marketin_ their communi advanta.tes a d 1d Gist""tt" '0 11• Ream**ego$ 2 target marketing to corporations. 12. how*to housing 3 13. Envirsamant quality 28 S I . Low poor sow 29 19.Culwrsl ana ldst 29 It pinirte 2t 17.1M preforms 24 Measures of Development Costs and Benefits )i. I Economic development administrators were asked how frequently Usc of Buletit II iei 1111:,1:- they used cost benefit and impact analysis techniques to evaluate At "I s i , S r I;Ifi i t I } 01'["1111 projects. Table 7 shows the degree to which their respective agency or GII ',if 1 14k, tMhe �, department performed a cost benefit or impact analysis study on %OWpow 7.g projects, 213 Surprisingly,about 30 percent of the economic development somatimes program administrators did not use or rarely used any type of cost 26.1 Mom 172 benefit or impact analysis studies to measure and evaluate projects. .tend no rami 14:10 duo,3o vuelon From a corporate real estate perspective,this shows both the lack of sophistication and disinterest in understanding corporate location,retention issues and site selection decision making issues on the part of that group. With the above breakdown in mind, it is insightful to consider the tools and methods employed by the two-thirds of economic development administrators who did use some io type of cost benefit or impact analysis study to evaluate projects. ;ht it'w f t I s( . mal Methods Mn Survey respondents were asked to rank seventeen types of analytical r" ""1° f" r (ISL it IX E I I u;I t:l!IIIiI?Ililit'' fs1llJrjGtS ut tools and methods that could be used to evaluate project impacts. E! !writ P r!1.1 N. http://www.siteselection.com/issues/2001/mar/p146/ 4/5/01 How Economic Developers Evaluate Project Impacts- Site Selection Magazine - March 2001Page 5 of 6 iiimmilimiiiiiiiimminnan Slightly over 50 percent of the administrators cited their own limb and Maths& Pireenti. le experience as the most frequently used tool and/or method used to Indk;h11.81EMIerielal+n+d iS7 evaluate community impacts. Table 8 shows the range of tools and a1. Twi knpitt *1 methods used to evaluate project impacts.Note that the degree to Pira 1 COMiliniert Soils 35.1 which economic development administrators used the tools and whimOf PrifeeloCemOn iffil011 Al methods declines from the moderate use of a few key measures to the i>hnlrelNaad;yelSai.aReview eta New%woo darts 91.2 infrequent use of several methods of evaluating and understanding *wpm&Ms locomen 111.1 project impacts. Employment Mood bodies 11s Moms rad W a IA intens 14.1 Economic development administrators also were asked to rate the hi in in o0snyIndr+ Y its importance of common impacts associated with economic Worker%raln1n Studies 10.9 development projects. As part of this rating,the survey sought 8wmeae Simnel Er 'Yvan 1 Neiwbahaed Advimns Stone Moen 1.5 information on the degree of importance the respondents felt that their eldtanspade! owest Gmaohlws 1,8 respective municipality or agency placed on collecting and analyzing sine"of CORM 17 cost impact data related to economic development projects. Table 9 Contribution to Atolls Rol S summarizes the project costs and impacts in terms of being very important and somewhat important. The importance of developing better R{1 t i ti the I ni j m rt;ince of insights into the practices of economic Economic D o v t:k n ll nl u n t Costs development officials cannot be understated. piwonsig.Roo" For some industries,projects and impactieetAn. Yirn ImPartlint Saffwafil.t communities,this information may not be Inkestromore Come KS 5 relevant-- for now. However,things change, III En*olM 6n1N Welke 1i S 42.7 Trek coonson443 i1 and the once friendly community may become Polleo and F m Semite sttl 591.7 highly critical of corporate site selection plans Phi."'"Cam 31.3 4" or an expansion project. In addition to Emiliern Tainting 21.1 *7 keno*Tom Fawns XS 43. 7 objective third-party studies(economic,fiscal AcoeWaana 19.8 sot impact,market value, infrastructure and R*nUon of Menepois/Eopineors 131.11 34.3 environmental impact)conducted for your Trenrit lonloots 12 361 firm,the research activities of local economic Social Service Costs lar Ws Worker" 49 211.2 development administrators can prove to be a valuable resource to explain your firm's position to the community and elected officials. The value of impact and cost benefit studies conducted(or not conducted)by the public sector can be critical in the identification of your company's contribution to and compatibility with a community. The information collected and the analysis performed by public agencies provides a way for politicians and citizens to better understand the value of your company as a member of a community. The information collected by economic development program administrators can go a long way in changing negative public attitudes about a project and can be a critical resource in the early identification of potential site location problems.MIMI niDr. Thomas A. Musil(tamusil@stthomas_edu)is director of the Center for Real Estate Education, a division of the Graduate School of Business at the University of St. Thomas, St. Paul, Minn. • http://www.siteselection.com/issues/2001/mar/p146/ 4/5/01