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EDSR INFORMATION 04-13-2000 • City of Elk River Strategic Industrial Marketing Plan April 3, 2000 Marketing Committee Meeting Highlights EDA Report Attendees Anita S. Duckor Pat Klaers Gary Santwire Jim Barthel Dr. David Flannary Marc Nevinski Chris Carlson Daryl Thompson Renee Sande Highlights The committee reviewed and approved a vision for the marketing plan that clearly identifies its purpose and states the value of locating a business in Elk River. The committee also reviewed the Competitive Analysis, which identifies Elk River's present and future competitors and compares the communities on a number of different factors. Additionally, the committee reviewed the Alignment Analysis, which measures a client's potential needs against what Elk River can currently offer. • The committee then considered the Location Site Process plan, which documents the client's interactions with the Economic Development and other departments. Much discussion occurred regarding the need for information early on in the process. The committee agreed that although the City has very capable departments, more interaction between the departments must occur. Additionally, it was agreed that the economic development staff should be in contact with the client throughout the development process. The committee then reviewed and briefly discussed the Client Screening Criteria, which cites factors staff musty consider in the initial client contact. Attachments • Value Proposition • Location Site Process • Initial Client Screening Criteria • Client Requirement's worksheet • • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together Marketing Committee Meeting Agenda April3, 2000 4:00—6:00 p.m. Elk River City Hall 1. 4:00—4:10 p.m. Review March 6th & 13 Meeting Highlights (Anita) 2. 4:10—4:30 p.m. Review and approve Vision, Statement of Purpose, Value Proposition (All) 3. 4:30—4:45 p.m. Review and discuss Location Site Process (All) 4. 4:45 - 5:15 p.m. Review and discuss Client Screening Criteria (All) • 5. 5:15 — 5:40P.m. Review and discuss Challenges & Risks (All) 6. 5:40— 6:00 p.m. Next Steps (Anita) 7. 6:00 p.m. Adjoin Duckor&Associates, Inc. A BluePrint For Your Success ...Today and Tomorrow City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together • Vision To be the light industrial hub for small to medium-size firms in the Northwest Metro region. Statement of Purpose The purpose of the Industrial Marketing Plan is to establish a process that (1) Attracts growth-oriented , light industrial businesses which increases and diversifies the tax base, (2) Complements the existing industrial base, and (3) Guides prospective clients through the entire site selection and development process, which builds long-term relationships. 1110 Value Proposition For small to medium-sized light industrial clients Who want to locate or expand their firms in a business- friendly community Our City (the Product) which is strategically located between the Metro area and St. Cloud offers the resources, tools and business incentives That meets the client's need to grow Unlike any other community in the Northwest Metro area Our Product (the city) builds long-term relationships to retain, expand and recruit businesses with professional and responsive City staff. ID Duckor & Associates, Inc. A BluePrint For Your Success ...Today and Tomorrow City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together Location Site Process Sub-Processes and Primary Responsible Party 1. Plan and manage Marketing (Economic Development) 2. Manage Sales (Clients') Accounts (Economic Development) 3. Conduct Site Visits (Economic Development) 4. Develop Proposals (Economic Development/Developer) 5. Approve Financial Package (Economic Development Authority/ City Council) 6. Approve Site (Site Plan Review Committee/Planning Commission) 7. Approve Building Requirements (Building Department) 8. Manage On-Going Relationships (Economic Development) Benefits ✓ Clear roles and responsibilities of process participants ✓ Enhanced understanding of clients needs and requirements ✓ Enhanced effectiveness and efficiency ✓ Improved results Inputs • Competitive Analysis • Industrial Recruitment Plan & Advertising and Promotional Campaigns • New Prospect/Lead • Call from client, broker, or developer • Call from DTED, Advantage MN, or other economic development organization • Call from advertising campaign or promotion • Existing business need or issue S Duckor&Associates, Inc. 1 A BluePrint For Your Success ...Today and Tomorrow • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together Location Site Sub-Processes 1. Marketing Management • Determine sales channels • Mass sales: Web site, Direct mail, Trade Show • Individual sales: Face-to-face sales call, Strategic Alliances, Letter, Trade Show • Identify and select key networks • Manage Industrial Recruitment Plan • Manage Advertising and Promotion Campaigns • Schedule monthly meetings with appropriate city departments • to discuss and manage economic development projects 2. Project Account Management • Contact made with client contact made • Determine client need (s) by completing questionnaire • Determine client's timeframe and internal decision-making process (Owner, Plant Manager, CFO, or?) • Clarify client's expectations • Qualify client (s) by completing screening criteria • If client is rejected, refer client to a city that can help them • If client is accepted, enter into the account management system • Prioritize critical issues and develop solutions Duckor&Associates, Inc. 2 A BluePrint For Your Success ...Today and Tomorrow City of Elk River • Strategic Industrial Marketing Plan Elk River...Where city and country flow together • Develop account (project) plan with schedule and deliverables • Manage client's account by contacting all appropriate departments and support services (city departments, state and federal agencies, financial resources, legal, and administrative) • Package appropriate information via client's medium (Fax, e- mail, mail) • Package final proposal and submit to client and Economic Development Authority (EDA), if appropriate • Submit to City Council for approval, upon EDA's approval, if final proposal requires Tax Increment Financing (TIF) or Tax • Rebatement Financing (TRF) • Follow up and satisfy client specifications • Measure success criteria for client satisfaction — timely, full disclosure information, responsive staff, or? 3. Site Visit • Select and schedule site visits • Prepare site visit package including maps, specific site information, etc. • Schedule key meetings for clients with city's sales team (local business executives, bankers, and other appropriate members) S Duckor& Associates, Inc. 3 A BluePrint For Your Success ...Today and Tomorrow • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together 4. Proposal Development Develop proposal with following sections: • Site options and information • Facility Type: Warehouse/Distribution, Manufacturing, Research and Development • Land use regulations, zoning codes, building codes, land use plans • Infrastructure Utility Services • Access to advanced telecommunications systems with sufficient network capacity • Adequate solid and hazardous waste disposal facilities • Adequate water and sewer capacity • • Reliable, quality electric service (dual source) • Competitive, stable electric power rates • Competitive, stable gas rates • Availability of Skilled Workers • #s, skilled and semi-skilled, administrative, professional, technical and management • Business Assistance • Sources for capital investment or operating funds • Need for export/international business assistance programs • Need for technology transfer, production processes improvements and operations • Housing Information • Options, Availability • Brokers and agents' list 0 Duckor&Associates, Inc. 4 A BluePrint For Your Success ...Today and Tomorrow • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together • Education Information • K-12 Options • Technical Training 5. Financial Package Approval • Economic Development Staff/developer completes application, develops and reviews proposal with Finance Department • Economic Development Staff submits proposal to EDA • EDA reviews client's proposal and application presented by staff • If approves, signs contracts and documents • If rejects, staff submits letter to client with explanation • EDA approves client's proposal and application that requires TIF or TRF and Economic Development Staff presents to City Council • If approves, signs contracts and documents • If disapproves, staff submits letter to client with explanation 6. Site Approval • Planning Department • Review and determine what process is required for client's plans to comply with the zoning and sub-division regulations. If no special process is required, then • Conduct Site Plan Review Committee meeting (Planning, Engineering, Public Works, Police & Fire Chief, Municipal Utilities • If yes, approve • If no, disapprove and provide client with instructions on how to meet the city requirements and regulations • If client's plans require special zoning process, assist client through process and submit plan to Planning Commission and City Council for approval. • Duckor& Associates, Inc. 5 A BluePrint For Your Success ...Today and Tomorrow • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together 7. Building Inspection • Building Department • Review and determine if client's construction plans meet city's construction codes • If yes, approve • If no, disapprove and provide client with instructions on how to meet the construction codes 8. On-going Client Relationship • Celebrate the new business with a press conference/ground breaking/grand opening • Conduct annual site visits to "check-in" ID • Follow-up with issues and concerns Outputs • Proposal • Siting a new business • Updated client records/data base • Understanding of client specific requirements and market intelligence • Economic Development Report to EDA Duckor&Associates, Inc. 6 A BluePrint For Your Success ...Today and Tomorrow • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together Initial Client Screening Criteria The purpose of the client screening criteria is to: • Quickly qualify clients • Offer assistance immediately • Refer clients who do not qualify 1. Determine why client is seeking a new site ❑ Business expansion ❑ Business relocation and rationale ❑ Merger ❑ Loss of current facility and rationale ❑ Need for close proximity to: (1) new markets, (2) new source of raw materials, (3) vendors and suppliers. • 2. Identify decision maker(s) for site location and financial package approval process 3. Determine timing of decision 4. Identify type of business ❑ Light manufacturing ❑ Heavy manufacturing ❑ High Tech ❑ Data Center ❑ Corporate Headquarters 5. Determine Site Needs ❑ Pole Barn o Brick & Tip-Up Concrete o Less than 10,000 sq.ft. ❑ 10,000 to 24,999 sq.ft. o Over 25,000 sq.ft. • Duckor&Associates, Inc. A BluePrint For Your Success ...Today and Tomorrow • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together 6. Determine if business is eligible for ❑ Micro loans ❑ Tax increment financing ❑ Tax rebate financing • • Duckor&Associates, Inc. A BluePrint For Your Success ...Today and Tomorrow • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together Client Requirements vs. City of Elk River's Benefits & Features Major Strength Site Needs Well-drained,flood- free,capable of bearing heavy foundation loads Serviceable by utilities: Reliable and Price Competitively, Special Needs Accessible to transportation: Highway,Rail,Air 94 or Airport Protected by zoning laws from conflicting uses,overgrowth and possible future restrictions for expansion Large enough parcels to allow for plant,parking • Factor and loading facilities and for future expansion Availability of workers/or current drive time for current workers • Skilled • Semi- Skilled • Technical • Professional Local government tax structure Cost of property and construction Proximity to Markets Proximity to Raw Materials& Component Supplies Need for Housing (Choices and Availability) Need for Education& Training • Duckor& Associates, Inc. A BluePrint For Your Success Today and Tomorrow Neutral Minor Strength Weakness City of Elk River • Strategic Industrial Marketing Plan Elk River...Where city and country flow together Challenges & Risks Economic Environment It can be expected that the region will have slow-to-moderate business growth. Thus, the plan needs to builds on the current industrial base, and business owners currently located in the Twin Cities that desire a location closer to "Up North" with all the city amenities. The regional economy appears to be growing relatively well compared to its northern competitors. However, there is concern that the region is not achieving its share of the new high-tech economy. This is evidenced by ❑ Minnesota's share of the nation's venture capital investment dropping ID by 50 percent since 1995 ❑ local high-tech firms performing poorly, growing at 50 percent of those in Colorado and Massachusetts and only by 25 percent of their counterparts in California and Texas and, ❑ Minnesota currently ranks 28th in public stock offerings and 34th in new company growth as stated in the Star Tribune article, "Hollow Minnesota, coming too late to the new economy. " Also, in the past the regional economy significantly benefited from the spin- off companies that evolved from companies like Control Data Corporation and Cray Research. Minnesota continues to see headquartered companies like Honeywell and Norwest depart which also impacts the number of new business spin-offs. Business growth is constrained by the full-employment situation and that there is no in-migration employment. With these unprecedented unemployment rates, employers are having difficulty finding and keeping quality workers. Duckor& Associates, Inc. A BluePrint For Your Success ...Today and Tomorrow • City of Elk River Strategic Industrial Marketing Plan Elk River...Where city and country flow together Competition In the short term, Anoka-Ramsey is the most serious competitor of the Highway 10 corridor, which includes City of Elk River, Big Lake, and Becker. In the competitive 94-corridor which includes the City of Rogers, Albertville and Monticello, the most critical competitor is the City of Rogers. Long-term competition will most likely come from Otsego and possibly Dayton. It will be necessary to monitor the competition once the City of Elk River launches its plan. It just may motivate the others to become more competitive in the area. Perseverance & Patience Location site decision timeframe ranges from three to twenty-four months. The build-out timeframe for both West and East Business Parks is estimated to be at least ten years. It is important that the City, City Council, Economic Development Authority and community nit understand the o need to maximize the asset value of these parks o timing of the build-out, and o need to be patient to selectively, attract high growth, light manufacturing businesses. The City of Elk River is well positioned to be the Northwest metropolitan region's hub for light industrial businesses and capture its share of the business growth. If, and only if, the city implements and manages the plan and is proactively patient for the type of manufacturing growth that will yield the greatest economic multiplier effect on its local economy. Duckor&Associates, Inc. A BluePrint For Your Success ...Today and Tomorrow