EDSR INFORMATION #2 03-13-2000 CAN
City of Elk River. p�
' •
Strategic Marketing and Sales Plan
o
March 6, 2000
Marketing Committee Meeting Highlights
EDA Report
Attendees
Anita Duckor Pat Klaers
Jim Barthel Dr. David Flannary
Renee Sande Marc Nevinski
Gary Santwire
Highlights
Following Ms. Duckor's brief review of the material covered at the previous
meeting, the committee discussed the Competitive Analysis that had been
developed to compare the cities believed to be in competition with Elk River
for industries. The committee suggested several communities be added to the
list and recommended that additional information be gathered on Elk River's
strongest competitors.
• Next, the committee reviewed the feedback Ms. Duckor received from various
businesses and community members in her interviews. The issues discussed
included space and site needs of businesses, the costs of doing business in Elk
River, and the timeliness and accuracy of information received in the site
selection process.
The committee also discussed the possible positioning statements for Elk
River that would define the community and set it apart from other cities.
Finally, the committee began working on the establishment of a document to
clearly state a vision, purpose, and competitive position for Elk River to base
its marketing strategy and tactics on.
Adjourned at 6:00 p.m.
Attachments
• Competitive Analysis
• Client Interview Summary
• Vision/ Statement of Purpose/Value Propositon
•
City of Elk River
Strategic Marketing and Sales
Elk River...Where city and country flow together
PRELIMINARY DRAFT
City of Elk River
Strategic Marketing and Sales Plan for Industrial Development
Competitive Analysis
Competition is significantly driven by labor force proximity:
• Typical 25 mile commute, driving radius of employees (Labor Shortage Market)i.e.
Best Buy's decision to locate in Richmond vs. a campus setting somewhere in the
Metro area. Retaining its employees drove the decision.
• Historical geographic expansion direction from inner city: Minneapolis to Brooklyn
Park or Brooklyn Center to Anoka or Blaine for light manufacturing businesses
The competition is identified in the North of the Norwest quadrant of the Metro area:
Industrial Business Zoned Spec Metro Local Marketing Tag
Land/ Parks Industrial Buildings Proximity Incentives Positioning Lines
Price Avail. to Mpls
Elk River 200 Acres No 35 TIF Where City
1.10/sf Tax Abat &country
Loans Flow
together
Big Lake 70 Acres 35 TIF Gateway to Where
Loan the NW Unity
• Land industrial makes
corridor Community
Becker 20K 45 Rebates for
land costs
Monticello 44 TIF
Loans
Plymouth 40K sf 12 Yes
..Anoka/ 21 TIF
Loans
AEP Incent
Ramsey 140K sf Yes
Andover 21
Coon 21K sf 14
Rapids
Maple 145K sf 16 TIF
Grove IRBs
Loans
Albertville 35 TIF
Loans
Rogers TIF
Ill Champlin Loans
other
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City of Elk River
Strategic Marketing and Sales
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Client Interview Feedback
Industrial Client Requirements
Client Requirements Feedback Action
REAL ESTATE
Site Needs Need start-up space Maintain and continue to
• Space Availability financially support the City's
• Lease Incubator
• Build/own
• Purchase Existing Determine low cost industrial
space(i.e.metal buildings)
Facility Needs
• Bulk Storage
• warehouse
• light manufacturing with
office space
Expansion Options
• Availability
• Cost of Suitable Sites
Site Needs: Need additional sites with utilities Need an anchor for West
• Size of parcel for light manufacturing Business Park;may require
• configuration of land, additional incentives to select the
• type of facility, Need to build 10,000 to 30,000 right business that will set the
• environmental factors s.f.buildings with expansion tone for the rest of the park
• price options.
• Rail Spur
Access The city is not focused or priority City needs to clearly articulate its
changes where industrial industrial development plan
development is going to be which
significantly impacts utilities'
investment,$16 M for one area
alone.
Price
• Free Land
• Market rate
FINANCIAL INCENTIVES
Tax Increment Financing(TIF)
/Tax Abatement
(Pay as you go)
TIF
(Upfront/Bonds)
TIF Land Contribution Free land is essential Incentive package must
compensate for the additional
costs to move out of Metro area
e.g. loss of employees or other
concerns
Loans
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City of Elk River
Strategic Marketing and Sales
Elk River...Where city and country flow together
• Client Requirements Feedback Action
CIT" „SERVICES AND COSTS wt/,:,.,
Low property taxes City was selected on the basis of Maintain industrial and city
its lower taxes than the Metro property rates
Evaluate the option to guarantee a
rate for three years to address the
concern”growing city,higher
taxes"
Special Infrastructure Needs: Need information on utilities Develop rate comparisons and
Electric,Gas,Communications, other pertinent information and
Water&Sewer Didn't receive rate comparisons add to package
Availability,Reliability&Cost or any information
Timely and accurate information Need to know information to Need to timely communicate
make a well informed decision what City of Elk River has to
offer
Didn't receive much information
Need to develop comprehensive
Information was not always site location packages and
forthcoming or timely e.g. address all potential issues
• jail expansion Need to understand both the
industry and the company's
• covenants,policies and environment to effectively
regulations, address their concerns
. • second shift noise and how it
would impact the residential
area
• need to bring in"soil fill"
which is both a time and cost
issue
• Wasn't sure if the city would
enforce its covenants
Need to sell me on the Market the city's advantages
community
•
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City of Elk River
Strategic Marketing and Sales
Elk River...Where city and country flow together
• Client Requirements Feedback Action
Ease of doing business with the All reactive experience Hire consultant to do the final
city negotiations for City.
Professional staff,very friendly--
Are local land use regulations, at times may be too Develop a screening criteria and
zoning codes,building codes,or accommodating client account information form
land use plans encourage
expansion or siting? Didn't sense the City has decided Need to inform client of siting
what type of businesses they want and building process and make
to attract. Will take anything! process as user friendly as
possible
Don't believe we make it easy to
do business with—a lot of Ensure Covenants are provided
redlining on drawings,etc. early in the siting process
Ensure all city departments
It was easy to do business with reflect a"can do' business
the city philosophy vs.how difficult can I
make it for the client
0EOGRAPHIC AT'T ES , ....
Proximity to St. Cloud Not viewed as a plus or minus
Access to: Major advantage Market key city advantages--All
• Suppliers the big city services with the
• Support services Viewed as connected to the small town atmosphere
• Raw materials Metro
• Customers
• • Vendors
(Proximity to Metro)
Transportation: Distance from the Metro airport A strip would make the city on
• Highway doesn't appear to be an issue par with some of the surrounding
• Rail communities
• Air 3 main highway arteries
• Water
Industry Compatibility Concern that residential TBD—may impact on type of
development is so close to the industrial recruitment city does
park. "Hope it isn't an issue"
Business park being so close to
the jail was raised as an issue
LABOR
Labor Force: Number,quality, Work ethic is better than the Attract owners that live in the
skill and wage level Metro area to return and eliminate the
• Highly skilled commute
• Semi-skilled Lower pay scales
• Unskilled Develop a reverse commute
• Clerical Need to encourage reverse strategy
• Professional/Technical commuting
• Managerial
•
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City of Elk River
Strategic Marketing and Sales
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illClient Requirements Feedback Action
EDUCATI"ON/HOUSING/BUSINESS NETWORK
Education:K-12,technical Concern about the overcrowding Provide a three year industrial
training classrooms property rate for a new company
Concern about a lack of a School
District's Plan e.g.one high
school or three
Is the district too large?
Funding impacts on local taxes
Housing Needs: Current Stock Need entry level or starter TBD
Availability&Price Levels homes/apartments
Institutional Support&Network Need support businesses: Develop a recruitment strategy
welding shops,sheet metal shops,
and machine shops
Support Services Pay slighter more for freight
charges than Metro,UPS and
RPS are the same
•
•
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City of Elk River
Strategic Marketing and Sales
Elk River...Where city and country flow together
Interview and Other Feedback
Images (What do you think of when you hear City of Elk River?)
• Connected to the Metro vs. St. Cloud area
• Blue collar community
• Bedroom community
• Suburb of the Metro area
• Not part of the MUSA, seven-county area
• Not outstate
• Small town with big city services
• Close to up north
•
• No commute
• Lacks a focus, no center
• Where city and country flow together! However, we are no longer in the country
• Don't' know. Haven't heard anything
• Not pedestrian friendly
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City of Elk River
Strategic Marketing and Sales
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•
DRAFT --- FOR DISCUSSION & BRAINSTORMING
Vision (Draft)
Is the choice selection in the North of Northwest Metro area for small to medium - size
light manufacturing businesses to site its businesses.
Statement of Purpose (Draft)
(1) The purpose of City of Elk River' industrial development recruitment plan is to help
increase and diversify the tax base that helps the city's overall growth plan.
(2)The purpose of City of Elk River's industrial development recruitment plan is to
increase household-supporting wage jobs and private capital investment that helps
strengthen the city's economic base.
Value Proposition (Competitive Position) (Draft)
• (1) For small to medium-size light manufacturing firms
Who want a desirable place to own/manage a business
Our city (the product) is a place that welcomes and encourages these businesses
That meets the customer siting requirements and provides the tools
Unlike the other surrounding cities in the Northwest Metro area
Our product facilitates business growth that helps local businesses do well.
(2)For small to medium-size light manufacturing firms
Who want to a desirable place to own/operate a business
Our city (the product) offers the resources, tools and business incentives
That meets the client's need to grow
Unlike the other surrounding cities in the Northwest Metro area
Our product builds long-term relationships to retain, recruit and help expand businesses.
Potential Promotional Partners:
Suburban Northwest Builders
Great River Energy
Connexus
Municipal Utilities
Minnegasco
US West
• Northstar Access
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