Loading...
7.0. EDSR 06-12-2000 • c �--�� ), J O 4_, • . 4_, ;_4 1.) 4) ,.... v • , _, cti .i., p4 ci) 0 t cd c ,__ E .4=-4e t , ' ' c) .- c) • w C� . , ..4 2-4 A c-)'1 ,4% CN1 c4--4 .1—) 7j CD Ce3 Eh) ; 1-1 O 4) . 0.' • ,t1 Pi-i T, c.) . OU E ct O U CID W • • Agenda City of Elk River Strategic Industrial Marketing Plan • Purpose • Approach Economic Development Authority ▪ Success Factors Presentation • Vision Anita S.Duckor • Requirements President ▪ Product Offering Duckor&Associates,Inc. • Strategies June 12,2000 • Budget • Benefits • Next Steps Purpose • Articulate a sustainable strategic competitive advantage • Purpose • Attract growth-oriented businesses• Build-out East and West Business Parks • Guide prospective clients through the location site process Approach • Built on 2000-2003 Economic Development Strategic Plan • Completed market analysis Approach • Conducted competitive analysis • Interviewed clients • Directed planning and strategy sessions • 1 • Success Factors • Ensure in-depth understanding of the delivery process • Define clear roles and responsibilities for process members Success Factors • Coordinate and align people,process and technology • Commit to long-term funding • Manage the plan • Pro-active patience - I Vision Be the light industrial hub for small to medium-size firms in the northwest metro region • Vision Requirements • Build the best product • Provide the best service Requirements • Create awareness • Close the sale • 2 • Product Offering • Available land • Comprehensive financial package Product Offering • Confidential location site services • Full city services and amenities • Professional staff and process • Information on state,regional,local products and services • Strategic location Marketing Objectives • To establish City of Elk River as the hub for light manufacturing firms in the northwest region by 2005 • • To build-out East and West Business Parks by 2010 Strategies Marketing Strategy Key Account Relationship&Lead Generation Strategy To launch an advertising campaign to industrial sectors that To establish the City of Elk River as the place to site reflects the current industrial base light-manufacturing firms with economic development Key Actions key influencers,leaders and providers • Launch campaign to Industrial Machinery,Fabricated Key Actions Metal&Electronic Equipment sectors • Establish and manage an outreach strategy • Develop attractive signage for business parks • Establish and maintain key account relationships • Develop fact sheets • Enhance parks'image by building trails and central ponds • 3 • Promotion&Advertising Strategy Communication Strategy To promote that the city is"Open for Business" To increase awareness by regional businesses of the value and benefits of the City of Elk River's industrial site Key Actions offerings • Update and redesign web site • Develop and place advertisements in key trade journals- Key Actions Precision Manufacturing,Business&Industry Magazine, • Establish communication standards Twin Cities Business Monthly • Determine core messages • Identify co-sponsors for promotion and advertising • Select core tag line and design Public Relations Strategy Strategic Partnership Strategy To increase awareness that the City of Elk River is a To ensure long-term economic growth,strategic partnerships business friendly community are critical 4110 Key Actions Key Actions • Aire a public relations writer • Improve attractiveness of E.Hwy.10&Central Business • Develop and place public relations articles District • Promote a coordinated Hwy.10 Corridor Plan • Promote Commuter Rail Product Delivery Process Strategy Client Support and Service Strategy To provide excellent location site services To surround the client with excellent service Key Actions Key Action • Develop location site services as a core competency • Develop a"How to do business with the City of Elk River • Conduct inter-departmental process assessment and guide" training on customer service • Develop roles and responsibilities for process members • Assign Economic Development Department as the lead 4 • Measurement To measure the success of the plan Key Actions Budget • Implement a management tracking report • Measure success by #of clients assisted #of clients sited #of"good to excellent"ratings by clients Amount of private capital invested by clients Investment in Development • Signage for East/West Park With Partners&Co-Sponsors • New decals for brochures • Develop advertisement y� • Inter-department location • Advertising campaigns- Benefits • site/expansion assessment Precision Machinery, • Customer Service training Business&Industry Magazine, • Account management software &Twin Cities Business tool Monthly magazine • "How to do business with City of Elk River"guide' • Public Relations campaign Benefits • Increases and diversifies tax base • Enhances retention,expansion and new growth Next Steps opportunities • Enhances understanding of clients and requirements • Builds long-term client relationships • 5 • Next Steps 2000 • Develop communication standards and promotional A Heartfelt Thank You! materials • Conduct inter-departmental location site process assessment and customer service training • Launch key account program All great achievements require • Develop signage for East/West Business Parks time. • Develop partnerships for advertising campaigns and develop advertisement I 6 • 2 Statement of Purpose 2 Value Proposition 2 Product Offering 3 Market Strategy, Objectives, & Positioning of Contents 7 Marketing Positioning 7 Marketing Strategy 7 Product Delivery Process Strategy 8 Client Support and Service Strategy 9 Clients'Needs and Wants 9 Competitive Assessment Ta13 Key Account Relationship and Lead Generation Strategy 13 Pricing Positioning 15 Communication Strategy 15 Promotion &Advertising Strategy 16 • Public Relations Strategy 18 Strategic Partnership Strategy 18 Challenges and Risks 19 Success Measurements 20 Budget 20 Chart 1 : Employment by Industry 3 Chart 2 : Industrial Composition Charts and Appendices 3 Chart 3 : Tax Base Composition 4 Chart 4 : State and Regional Services and Programs 6 Chart 5 : Client Requirements 9 Chart 6 : Alignment Analysis 11 Chart 7 : Key Account List 14 Chart 8 : Promotional and Advertising Partnership List 16 Chart 9 : Advertising and Placement Schedule 17 Chart 10 : Strategic Partnerships 17 Location Site Process A Competitive Assessment B ° Vision Revised SWOT Analysis C Strategic Industrial Marketing Plan Schedule D Budget E •• 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 Strategic 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. 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. 2 • Product Offering Currently, the City of Elk River's economic base is: Chart 1 City of Elk River Employment by Industry (SIC) 1999 InMachinery 28% Chemical&Allied Products 0% Rubber&Plastic Fabricated Metal 9% 22% Stone,Clay,Glass 15% Electronic Equipment 22% Instruments 3% Transportation Wood Products Equipment Furniture&Fixtures 0% 1% 0% Chart 2 City of Elk River Industrial Composition • 1999 Industrial Machinery• 16 Stone,Clay,Glass Rubber&Plastic 3 4 fr Chemical&Allied Fabricated Metal-2 Products-1 Transportation Electronic Equipment-1 Wood Products-1 Equipment 2 Instruments-1 Furniture&Fixtures- 1 • 3 Chart 3 • City of Elk River Tax Base Composition 1999 Residential 64% Apartments 5% Resorts 0% Seasonal Re 0% Industrial Commercial Agriculture 3% 17% 4111 Public Utility Personal Property 3% Railroad 1% 0% The top three businesses by Industry by numbers are Industrial Machinery, Rubber& Plastic, Stone, Clay and Glass. As noted, Industrial Machinery,Fabricated Metal,Electronic Equipment, Stone, Clay, Glass, and Rubber&Plastic sectors make-up the highest employment by Industry. The marketing effort will build off these established industrial sectors. The City of Elk River offers • light-manufacturing firms available land • a comprehensive financial package • confidential site selection services • customer- driven professional staff, and • a strategic location between the Twin Cities metro area and a regional urban area, St. Cloud. . 4 • Action • Develop attractive signage for both East and West Business Parks (2000) • Develop business parks fact sheets (2000) • Revise and enhance City of Elk River's web site (2000) • Use existing City of Elk River brochure • Enhance parks' image by building trails and central ponds, if feasible City of Elk River's Product Offering u Confidential Location Site Services u Available Industrial Land ❑ Land Acquisition Incentives: u Tax Increment Financing ❑ Tax Rebate Financing u Micro Loan Fund ❑ Information and knowledge of state, regional and local products and services that can help an industrial client locate, grow and prosper 5 • Chart 4 State and Regional Services and Programs Small Business Financial Education& Technology Export/ Management& Assistance Training Services International Consulting Trade Services Support ■ Anoka&St. • Minnesota • St.Cloud State • Manufacturers • Minnesota Trade Cloud SCORE Department of University Alliance Office Offices Trade and Economic • St.Cloud • Minnesota o Guaranteed • St.Cloud State Development Technical College Technology,Inc. loans and University Small financial Business o Tax-exempt • Anoka-Ramsey o Manufacturing consulting to Development Bond Pool Community Technology exporters Center College Assistance o Capital Access • The Collaborative Program • Anoka-Hennepin o Technology Technical College Information ■ Minnesota o Minnesota Services Cooperation Investment • North Hennepin Office Fund Program Community • Minnesota High College Tech Association • Minnesota Project • Initiative Innovations,Inc. Foundation Hennepin • Minnesota Project Technical College Innovation,Inc. • Anoka/Sherburne County Capital • University of Fund Minnesota • Central Minnesota • Educational DevelopmentEmployment Company-CoonPartnership Rapids ■ Minnesota Business Finance Corp.—St.Cloud ■ Minnesota Investment Network Corp.SI) 6 • .. Market Strategy, Objectives, & Positioning ❑ To establish City of Elk River as the hub for light manufacturing firms in the northwest metro region of the Twin Cities by 2005. ❑ To build-out East and West Business Parks with a range of building sizes that meets the City of Elk River's design standards by 2010. Marketing Positioning City of Elk River's marketing positioning can be one of strength because of its • Desire and commitment to attract light-manufacturing firms • Land acquisition incentives and competitive financial package • Customer-driven professional staff • Community with full city services and amenities, and • Strategic location (Twin Cities - St. Cloud) The marketing position will only be achieved with the understanding that resources are dedicated to long-term objectives and that there is proactive patience for the type of light manufacturing firms the city desires to attract. Marketing Strategy To launch a campaign to industrial sectors that reflects the current industrial base. Action • Target the following Standard Industrial Classification sectors: Industrial Machinery, Fabricated Metal, Electronic Equipment • Research and gain working knowledge of each sector • Launch campaigns annually (2001-2002-2003) 7 • Product Delivery Process Strategy To provide excellent location site services for light manufacturing firms. The city delivers its product, siting light manufacturing firms, by offering and providing location site services. In order to provide excellent service, everyone involved in the Location Site Process needs to know the process itself, as well as his or her respective roles and responsibilities. It is critical to not only attracting and siting a client but also in meeting or exceeding the client's expectations of the city and building long-term relationships. The Location Site Process includes the following 8 sub-processes and responsibilities: 1. Industrial Marketing Management(Economic Development) 2. Project Account Management (Economic Development) 3. Site Visit (Economic Development and Business Community) 4. Proposal Development (Economic Development/Broker) 5. Financial Package Approval (Finance, Economic Development Authority, City Council) 6. Site Approval (Site Plan Review Committee, Planning Commission) 7. Building Inspection Approval (Building Department) . 8. On-Going Client Relationship (Economic Development) Please note Appendix A for Location Site Process in more detail. Action • Develop roles and responsibilities of process participants (2000) • Conduct an inter-department Location Site Process assessment including training on customer service (2000) • Assign Economic Development to be the lead in the Location Site Process and be responsible for the client throughout the process (2000) • Design and develop proposal prototype e.g. mass customization (2000) • Select and install a software account management system e.g. ACT or Goldmine (2001) • Conduct as needed project meetings to discuss status and issues (On-going) • 8 Client Support and Service Strategy 4111 To surround the client with service. Action To meet the client requirements of Timely and accurate information and Ease of doing business with the City, the city needs to do the following: • Develop location site services as a core competency (2000 and on-going) • Develop a "How to do Business with the City of Elk River" guide (2000) • Provide easy to read, client friendly, and concise information materials (On- going) Clients'Needs and Wants The client requirements that drive the site selection are real estate, financial incentives, city services and costs, geographic attributes, labor, housing, education and business network support. Below are the critical client needs that have been identified and confirmed by interviews, field experience and by reviewing the competitors' product offerings. 410 Chart 5 Client Requirements Client Requirements[i Client Drivers Client Value(Benefits) �aoi/moi r+ , Site Needs • Space Availability Need to locate/relocate immediately Ability to locate now • Lease • Build/Own Need to reduce business costs Reduce capital requirements • Purchase Existing Desire to build own building Offers flexibility and ability to customize Facility Needs building • Bulk storage • Warehouse • Light manufacturing with office space _ Expansion Options Need to expand with business growth Expand at same site without a costly move • Availability • Cost of Suitable Sites Site Needs: • Size of parcel Meet current&future building demands Operate efficiently&cost effectively • Configuration of land cost effectively and predictability. • Type of facility • Environmental factors • Price • Rail spur access Price Need additional$$to reduce upfront Use$$for business results • • Free Land investment • Market rate 9 Client Requirements • Client Requirements Client Drivers Client Value(Benefits) Tax Increment Financing(TIF)/Tax Need$$to assist with reducing project Able to use$$for business results Abatement cash flow (Pay as you go) TIF Need up front financing to reduce project Reduces debt service (Upfront/Bonds) TIF Land Contribution cost Reduce upfront costs and provide equity Ability to put more$$into business Loans y Gap financing,reduced cost of mone Ability to acquire more funds for project ( CTT �MDC_Ot STI,:,,,41114?"2 72100-.7,1"ptita . Low property taxes Reduce business costs Use$$for business results Special Infrastructure Needs: Electric, Special production requirements or Reliability and Capacity for production Gas,Communications,Water&Sewer communication linkages Availability,Reliability&Cost Timely and accurate information Need to know information to make a well Avoid wasting time and$$ informed decision Ease of doing business with the city Don't want to waste time or energy on Know that business is wanted and r;� ' �v zoning,or other permit issues appreciated in the community .zGGOG APO,Ec R1E yE�7i,, /i/�i ..� /om :r;,...l.� ••:,Z747*'„g, Proximity to St.Cloud/Metro Close proximity urban centers Reduce business costs Access to: Easy and affordable access to vendors, Reduce business costs • Suppliers suppliers,and customers • Support services • Raw materials • Customers • Vendors Transportation: • Highway Need access to major international airport Reduce staff traveling time and for national and international markets transportation costs and transport product • Rail more quickly • Air Industry Compatibility Desire to fit in and avoid conflict Be a good neighbor and community ABOR=: partner �/�/////6/,,,, !�/ � .„ n ;- Labor Force: Number,quality,skill and wage level • Highly skilled Availability Production&profit • Semi-skilled • Unskilled • Clerical • Professional/Technical • Managerial , B 7 SON ABillttESSiNETW. .1Pf:1170327:regatiKMVA44-E014, Education: Need a good education system available Well educated children • K-12 for my employees and my children. • Technical training Need to continue to train my employees. Well trained employees Housing Needs:Current Stock Availability Want to have executive and affordable Choice at all housing levels &Price Levels housing options Institutional Support&Network Need for business formation,support and General business and R&D Support, technology development support Training$,to help my business be successful 10 • The following Alignment Analysis chart outlines how the product offering (the City of Elk River) meets these client requirements. Chart 6 Alignment Analysis Client Requirements & the City of Elk River Client Requirements City of Elk River Value of Attribute E, Site Needs • Space Availability • West Business Park—120 Acres Advantage • Build/own • East Business Park—40+Acres Advantage • Lease • Generally no lease space available Disadvantage • Purchase Existing • Limited opportunity to purchase existing. Disadvantage Facility Needs • Bulk storage • Warehouse • Light manufacturing with Neutral office space • Can build or lease light manufacturing Expansion Options • Availability • Land available to purchase Advantage • Cost of Suitable Sites • Market rate equal to or less than metro Advantage Site Needs: • Size of parcel • Medium to large lots available (+)For larger co. • configuration of land, • Conducive to most development Advantage • type of facility, • Brick or Concrete construction required (-)Smaller co. • environmental factors • None,all Greenfield Advantage 1111 • price • Market rate,less than metro Advantage • Rail spur access • Available in downtown or could construct in East Neutral Business Park. Price • Free land • Write down with TIF or contribute city owned land. Neutral • Available • Market rate .. vrag Tax Increment Financing(TIF)/Tax • Able to provide TIF for 25,000 sf or more and Tax Neutral Abatement(Pay as you go) Abatement for smaller projects TIF • Willing to provide as additional incentive for highly Neutral (Upfront/Bonds) desirable development. TIP Land Contribution • Available in East Business Park and small parcel in Neutral West Business Park. Loans • Available Advantage Low property taxes • Below average of 129.332 Advantage -Elk River 1999=121.130 2000=119.362 Special Infrastructure Needs: Electric, • All infrastructure in place and able to provide needed Advantage Gas,Communications,Water&Sewer capacity in most cases Availability,Reliability&Cost Timely and accurate information • Need to improve location site process Working to establish location site process. Ease of doing business with city • Need to improve location site process Working to establish location site process. • 11 Alignment Analysis • Client Requirements City of Elk River Value of Attribute Axl+ ) 4m .. .... ,. Proximity to St.Cloud • 40 minutes on Hwy 10 Advantage Access to: • Suppliers • Hwy 169,101,and 10 plus the proximity of I-94 offers Advantage • Support services easy access to customers,suppliers and services. • Raw materials • Customers • Vendors (Proximity to Metro) Transportation: • Highway • Hwy 169,101,10&close proximity to I-94 Advantage • Rail • BNSF main line spur b/w Jackson and Proctor Ayes. Advantage Possibility in E.Bus.Park • Air • No local air strip Disadvantage Industry Compatibility • Desire light industrial Advantage c: vtigetT Labor Force: Number,quality,skill and wage level • Highly skilled • Draw from NW metro and out-state(i.e.Princeton& Neutral • Semi-skilled Milaca)labor pool. • Unskilled • Clerical • Professional/Technical • Managerial �� UCA' Ibl'+"It1iOU>RNG/EtISINES *YoRt ,._.... .. �. <! y/' • Education: • K-12 • 98%graduation rate—1999 Neutral • 24%go on to 2 year college • 28%go on to 4 year college • Student:Teacher=16:1 • Student:Computer=12.5:1 Neutral • Technical training • See Chart 4 Housing Needs: Current Stock Availability • TBD TBD Price Levels • Average existing Sale Price 1989=$139K Neutral Institutional Support&Network • See Chart 4 Neutral • 12 • Competitive Assessment After collecting and reviewing information on the competition, six current key competitors were identified, Anoka-Ramsey, Rogers-Hassen Township, Big Lake, Becker, Monticello and Albertville. Andover,Dayton and Otsego were identified as potential competitors in the future. Please note Appendix B for the Competitive Assessment and Appendix C for the revised and updated SWOT Analysis. Key Account Relationship and Lead Generation Strategy To establish the City of Elk River as the place to site a light-manufacturing firm with economic development key influencers, leaders and providers. Action • Establish and implement an outreach strategy to position the City of Elk River as the light-manufacturing hub for the northwest metro region. (2001) • Identify top 10 key accounts • Assign top 10 key accounts to city staff • Identify purpose and goals for key accounts • • Meet with key accounts quarterly and have monthly contacts by telephone, e-mail or written communication • Keep track of account interactions by project management software • Meet monthly with City Administrator to discuss key accounts • Add new key accounts annually • Establish and maintain key account relationships to help: • Inform the key influencers that the City is "Open For Business" • Promote the benefits of siting a business in Elk River, and • Enhance the city's credibility that it is a player in the economic development field. • 13 • The key account relationships are the following state organizations, regional and local economic development organizations, state and local trade associations, key developers and brokers, location site consultants, and financial institutions. Chart 7 Key Account List Economic Development Manufacturing&Trade Key Developers& Location Site Accounting&Financial Organizations Associations Brokers Consultants& Institutions Construction • Advantage • Manufacturers • Opus—Craig • Corporate Real • Ernst&Young Minnesota Alliance Patterson Estate,Inc.— Bruce Maus • KPMG Peat • Department of • Minnesota • Ryan Companies Marwick Trade and Technology,Inc. —Tim McShane • Kraus-Anderson Economic Construction • Norwest Venture Development • Minnesota Project • John Lavander Company Capital Innovation,Inc. Caliber Development • Mortenson • Minnesota • Minnesota Project Investment Outreach • Told Network Corp. Development— Bob Cunningham • First National Bank of Elk River • Nelson Tietz& Hoye—Russ • The Bank of Elk Nelson River • Keewaydin— Peter Kitchack ■ CB Richard Ellis —Chuck Caturia or Kurt Knoeff • Grubb&Ellis- Ron Sholder • Cushman& Wakefield—Mark Evenson • John C.Weicht& Associates—John Weicht • Rivers Crossing— Gary Santwire • Riverside Companies—Rick Foster • Amcon—Jim Winkles • 14 Pricing Positioning • To offer land acquisition incentives including a financial package that reflects a good- value and competitively priced product. Action • Revise Tax Increment Financing Policy and Application, Micro Loan Fund Policies and Application, and Tax Rebate Financing Policy and Application forms to be consistent with new communication design and format (2000) • Hire Economic Development financial consultant to negotiate and package significant and highly critical and selective projects (As appropriate) Communication Strategy To increase awareness by light-manufacturing firms in the Twin Cities and St. Cloud of the value and benefits of the City of Elk River's industrial site offerings. Action • A communication strategy needs to be developed and launched to ensure key messages, language and terms are used consistently through-out all communication materials and mediums including proposals,brochures, direct mail, Web site, advertisements, and other promotional materials. Coordinate with City of Elk River's overall Communication strategy and plan. (2000-01) • A core tag line like "The light industrial hub in the northwest metro" should be used in all written materials. To help position the City, the same core messages to be used consistently, for example the City of Elk River's Economic Department : • Helps you confidentially with your siting needs • Provides timely information for all parties, and • Provides a seamless siting process. (2000) • Select at least three colors in a chosen color palette to be used in all materials. Select one type of font for all written materials for consistency and branding. (2000) • Continue to use the "Elk"image. S 15 Promotion &Advertising Strategy 1111 To promote that the City is "Open For Business" and to generate leads for the East and West business parks. Action • Use several advertising mediums: • Revise web site (2000) • Develop and place advertisements in key trade journals (2001-2002-2003) • Plan and conduct Events • Ground breaking and openings of new businesses (As needed) • Identify co-sponsors for promotion and advertising efforts. See Chart 8 for potential partner list. (2000) Chart 8 Potential Promotion and Advertising Partner List Brokers/Developers Telecom&Utilities Financial Others • Suburban • Great River Energy • First National Bank • Elk River Area Northwest Builders of Elk River Chamber of • • Connexus Energy Commerce • John C.Weicht& • The Bank of Elk Associates—John • Municipal Utilities River Weicht • US West • Rivers Crossing— Gary Santwire • Northstar Access • Riverside • Reliant Energy Companies—Rick Minnegasco Foster S 16 Chart 9 • Advertising Placement and Schedule 2001 2002 2003 Frequency& Reach Precision Machinery March March March 1/z page two color May/June May/June May/June $495/insert(8x) July,August July,August July,August Circulation:6,500 job September September September shops in Midwest Nov/Dec Nov/Dec Nov/Dec Business& Industry January January January 1/z page two color Magazine April April April $1027/insert(6x) June June June Circulation:14,000 in August August August upper Midwest October October October December December December Twin Cities Business 6(x) 6(x) 6(x) 'h page two color Monthly 17 $2,120/inserts(6x) Circulation:32,874 in Twin Cities • • Public Relations Strategy To create awareness that the City of Elk River is a business-friendly community for light manufacturing firms. Action • Develop a public relations strategy to create an awareness of the City of Elk River and to support long-term indirect selling of the business parks. (2002) • Hire a public relations writer to develop at least three different themes: • Highlighting economic development • Highlighting successful local businesses and, • History and future of Elk River as it relates to business. (2002) Strategic Partnership Strategy To support long-term Economic Development in the area, strategic partnerships are critical to the overall success of the plan. Chart 10 • Strategic Partners Strategic Partnership City of Elk River and Brokers/ Education/ Strategy Government Developers Business Network Improve attractiveness E.Hwy ✓ 10&Central Business District Promote a coordinated Hwy ✓ Hwy 10 Improvement 10 corridor plan Committee,MNDoT Promote Commuter Rail ✓ Northstar Corridor Development Authority Promote all levels of housing ✓ ✓ Provide Training&Education ✓ See Chart 4 Provide technology support ✓ See Chart 4 Provide business and financial ✓ ✓ See Chart 4 resources Assist in Workforce ✓ See Chart 4 Development • 18 • Challenges and Risks Economic Environment It can be expected that the region will have slow-to-moderate business growth. Thus, the plan needs to build 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 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. Competition In the short term, Anoka-Ramsey is the most serious competitor of the Highway 10 corridor, which includes the cities of Elk River, Big Lake, and Becker. The competitive I-94 corridor includes the Cities of Rogers, Albertville and Monticello, of which 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. S 19 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 understand ❑ The need to maximize the asset value of these parks ❑ The timing of the build-out, and ❑ The 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. Success Measurements To determine the success of the plan, the following management tracking report will be implemented: • The City of Elk River's Economic Development Department will report annually on: • The number of clients assisted and sited • The number of"good to excellent"ratings from clients, and • The amount of private capital investment that the city helped stimulate. Budget Please note Appendix E for estimated annual budgets for 2000, 2001, and 2002. • 20 • APPENDIX A Strategic Industrial Marketing Plan City of Elk River Location Site Process Sub-Processes and Primary Responsible Party 1. Industrial Marketing Management (Economic Development) 2. Project Account Management (Economic Development) 3. Site Visit (Economic Development) 4. Proposal Development (Economic Development/Developer) 5. Financial Package Approval (Finance Department/Economic Development Authority/City Council) 6. Site Approval (Site Plan Review Committee/Planning Commission) 7. Building Inspection Approval (Building Department) 8. On-Going Client Relationship (Economic Development) Benefits ✓ Clear roles and responsibilities of process participants ,/ Enhanced understanding of clients needs and requirements • .7 Enhanced effectiveness and efficiency ✓ Improved results Inputs • Competitive Analysis • Industrial Marketing Plan &Advertising and Promotional Campaigns • New Prospect/Lead o Call from client,broker, or developer o Call from Department of Trade and Economic Development Department, Advantage MN, or other economic development organization o Call from advertising campaign or promotion • Existing business need or issue • 1 • Location Site Sub-Processes 1. Industrial Marketing Management • Determine sales channels o Mass sales: Web site, Direct mail, Trade Show o Individual sales: Face-to-face sales call, Strategic Alliances,Letter, Trade Show • Identify and select key networks • Manage Industrial Marketing 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 • 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) • 2 • • 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, etcetera 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) 4. Proposal Development • Develop proposal with following sections: • Site options and information o Facility Type: Warehouse/Distribution,Manufacturing, Research and Development o Land use regulations, zoning codes, building codes, land use plans • Infrastructure Utility Services o Access to advanced telecommunications systems with sufficient network capacity o Adequate solid and hazardous waste disposal facilities o Adequate water and sewer capacity o Reliable, quality electric service (dual source) o Competitive, stable electric power rates o Competitive, stable gas rates • Availability of Skilled Workers o #s, skilled and semi-skilled, administrative, professional, technical and management • Business Assistance o Sources for capital investment or operating funds o Need for export/international business assistance programs • o Need for technology transfer, production processes improvements and operations 3 • Housing Information o Options, Availability o Brokers and agents' list • Education Information o K-12 Options o 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 o If approves, signs contracts and documents o 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 o If approves, signs contracts and documents o If disapproves, staff submits letter to client with explanation • 6. Site Approval • Planning Department o 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 o 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 o If client's plans require special zoning process, assist client through process and submit plan to Planning Commission and City Council for approval. 7. Building Inspection Approval • Building Department o 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 • 4 • •ee 8. On-going Client Relationship • Celebrate the new business with a press conference/ground breaking/grand opening • Conduct annual site visits to "check-in" oProposal Follow-up with issues and concerns Outputs • • Siting a new business • Updated client records/data base • Understanding of client specific requirements and market intelligence • Economic Development Report to EDA 5 0 ƒ> ƒK {ƒ a) ° � � o= <± \ § \ \ 0 cn \ � --q:CD \ � CD co J I 9 2 m / o 0 0 Em Em >o ®/{ ®/\ ®{§ ®{§ ƒ\ E= o g= o E= o E= o = =g } =77 =g } =g } 5, \� CD 7 CD , t -1 -r -I V I I $ +a ƒ/ 5/\ 1 . ƒ[Q /{\ }co Ef \ �/E -0o # / // f , Ilk p+k < 0 2 -0e-0 /\Q \2® A * 2� / \ 0o,0 \m \ \/7 {\ff ` m e m 6C CD _ + 0 Ilr V _ / 2 W\/\ )CD 0I 0I _ ��E t* 7 /k/E E9 ) I Iƒ 7a§ /«\ R NI § ® mE gco ; { �F2 \ $ E ( $ /$ f 2 , ƒ22 � \ et1-4 /�5 1- O - � -. V Z\ a f o 1/F \-13/� til 2. - - $S;q / /Gc� m0 � £ ° § c mm - }/\} — � (Z----- ..rg | _ . 7 S • i , I¥ m o0 27 [/m , 0 . { m §#2$ . ovG _ {*em Kyo $ \/ c kt./ k� � 1111 °t> E\ //� � 0Ec 2225/yof 7E° 0 \\oE/ t 2a) sw<0 _ c It1 t A } § <2 /co : APPENDIX B City of Elk River • Strategic Industrial Marketing Plan 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 Richfield 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 • • 1 A N v� 5 a bA U 7 ,y OASr) as c y id E °3 v • op 00 ° g g �3'S �°v Z 4 4 04'1= U a ,--i d= v 0 ^ — ^ c1D cn�j cn F vl U 0 w .o 00 -1- 00 N N M V•1 Co -,t co .�-i vl Oo o i N N o p R N M°N N (-1 c-.., WI ON sso e6- R 0cNuva O i � CCW° Z 0WbE 04 o aK o - W - W - W o � .- 014 zzu = an d 3 z , x,-, q U Z C/) cn cn x cn ., C. 0 N E C N N 0 0 4 0 0 G A 00 00 3 3 U ai U Q x . ..0 v) 0CID E4 4 • E..< 4 a�a � A z a >-, zWw(5ac w O • x d ›Ww N I4 7,4 .ttaZ rw � • R Og C G U. t< L[� gWV " yQ U �aa H xR E' ct E" 3.2 E- 3 .1 a 3 E. 3 . l. ✓ M U /. N N M 7 M fag o Vi co b0 . 00 . w y. 7d� H w'7� �� N CO b • •4.d O N 0 .4 b bko �as a ab S 69 a 3 � N :aa 3 a 0 co • U Q El ▪ 'b N U C vii c Q r 00 74 � � w. Nc � •N� u o 0 0 r7 0 R 4 O ' R L 4 .-1 .Ci O 4 >' C fl' 4 y u 44,1 u-col y' co ac.k b0 . C ►a V L W a .a a H as m on ai en cl e0 C c0 0 E.-. •,_ Fa 0 F. y O = .. 44 L. L .O U .b CLE \6 00 � ,6 V'; .b V .b CL 00 h N 00 Cr; N mFv8 c5, unFmV >, >L,b� a, a,b\° N R 'C7 00 V o0 N m vn 00 00 N .fl N M h o0 N M v1 Q o f N N c N m O, N N OA 3 w co N M a\ N G\ Cl M O\ ,i W 2 e * C7 Sb� 0 7.0 H I--' y 011 — ❑ > L .. on-- ❑ ❑ > 0 cC W w ? C c0 W W . v ..3 , 0 u y u 'O Ct L' y ,❑ y C w U O z [w U X V) CO • VI 4 w C ❑ C C W 'x ..5 :5 � C x v U 0 U •L. ''q 7 0 ❑ C ❑ V ¢ �o 3 C U Q x x x v' x x o OU. F ci)W ° Z �- qW rWq W >' >" >' a v g • O N w C. O % CO o ❑ .e coC� u � >' E- ." F• .. T., z' y . M N O fag U � y Y. En gi:1 go a e0 .L � .y - og 2,2 a 3 F 3 a R .fl :, R.b :+ C oo N 'R C r...z '� C.= r, N (0 caa „ �a ., CO i0 4‘7,' w a c. a \Jbaa - 69 II 11 • y745+ 0 = q U c4 2 0 U a + % 0 ƒ •) O / 0 0 u u V) •) CC .§ 4 \ ƒ c!..., o / § 7 /• ) 2 ƒ d 0 ° o § 0 ] u ' o \ / \ p \ & a t \ / / / / ® - - U / 0 ) . u 0 •c• oi ) { ƒ K § / C 9 a ° § O m E 0 / 2 0 a• « a •§ u 6) U a ) O § % •. •§• § § .2 u o a • u ƒ \ § / Cn § \ u / § E § § , w \ U U \ U / w &D U O O 0 O / rn 4:1u / $ 0 0 = Q ƒ ƒ 5 / / 0 § / * = w o O E• ƒ c ,..$-. \ 2 \ . § a •± Q q o _ 5 2 ° 8 -0 § / 0 0 0 Is. eel \ k - CC e ƒ < « 2 \ U q 3 $ / / APPENDIX C • SWOT Analysis Revised for Strategic Industrial Marketing Plan Strengths o Close proximity between St. Cloud and the Metro area o Access to three major transportation corridors (Hwy 169, Hwy 101 to 94, and Hwy 10), and main line railroad with spur access o Available fair market industrial land o Available: Two Business Parks—approximately 200 developable acres/city owns 20% o Established business incubator o Potential labor pool within Elk River—converting city's commuter pool to jobs within the City o Labor pool within a 20 mile radius of Elk River(Becker, Clear Lake, Milaca, Princeton) o A distinct Downtown o Major retail hub for Cub Foods, Target, Wal-Mart, Home Depot, Menard's • o Full range of city services o Committed progressive leadership o Accessible, well-managed city government o Available Sewer and Water services including growth capacity o Close proximity to construction materials (sand and gravel) o Good K-12 school system o Working relationship between business and Education (Education to Employment Progression Partnership) o Established community that continues to grow o Stop for"Up North" (Strength for retail); Closer proximity to "Up North" for residents vs. the Metro area o Large park system: Youth Athletic Complex, ball/soccer fields, neighborhood parks, • trails, and full range of Youth Activities e.g. Boys and Girls Club A BluePrint For Your Success 1 ...Today and Tomorrow Weaknesses • o Train movement e.g. 55 trains per day o Lack of public transportation e.g. buses or cabs o Lack of a market presence or clear identity for the city o Lack of funding for K-12 school facilities and staffing o Lack of technical skills training especially with Anoka Hennepin Technical School closing o Low labor availability statewide o Industrial base with no major industrial anchor, e.g. Medtronic's in Fridley o No community center or large meeting facilities o Challenging vehicle movement within the city o Completion of 101 Highway Bridge construction project (2001-2002) • o Lack of spec building space S A BluePrint For Your Success 2 ...Today and Tomorrow Opportunities o To position and expand the Energy City designation o To obtain the MN Sports Federation sports complex (7 acres) ❑ To add different levels of restaurants o To develop a downtown riverfront, e.g. river walk o To attract current commuter labor force to work in the city o To attract reverse commuter labor force o Attract commuter rail to the city o Develop more open public spaces e.g. public parks and golf courses o Enhance relationships with key state/regional/local economic development associations e.g. Minnesota High Tech Association, Minnesota Technology Inc. and North Metro Mayors Association o Develop industrial marketing programs targeted at key location site decision makers • Threats o Competing incentive packages from other states, counties and cities ❑ Managing growth in the School District IS 728 o Lack of air strip o No entry level housing available o Lack of spec space o Unattractive power lines in downtown and river area o Wild and Scenic River Ordinance limits development and redevelopment efforts i A BluePrint For Your Success 3 ...Today and Tomorrow • APPENDIX D City of Elk River Strategic Industrial Marketing Plan Schedule 2000-2002 S S 1 lseq N MEE • „41,,,,,,„,,„,,,„,,„,. , MEI 7 7 'I C M 7 MR N N 7 7 IME 1-1 7 7 7 7 NEE M 7 RoM Ila aA N C N 7 7 7 r..s IEEE rg 61 0,„„„ 7 C� EMI 7 7 7 7 Vp " � NN • N Vi N pm - Lr -0 "0 Nil ..fir :~ - >L Wy N C= v) 6. a) cCC , am " U tA crl o 4 W cc L'D bA 8 - a) '- " i `= o A, c1 at En .,-4 0 i46,,-- g) 0 "� N = cd N REEeto= O s.'A O � G) • G , N 9 U cd r = al a4.PO x Wo ° ° oc7j Wpq o4 o a) a^a 0 1.9©11 a) j :G4 44 Q ,� Uv) fib ' d.� a'"/r ri cn 0 y 7 1111 ' ' 7711111 77 perni jN .. Ai*, Olt oM 7e., CM 77 atiSCM 77 .._.„C' , N N N 7 N 7 7 ("1 7 7 PlltglPi $ EIRMI 7 77 77 it§2111111ft kis �% M lli /� M M ziliiikiiir p p 1 rte: 0 O 3110 1,10000.4:i,1::1:. N N N N N N 7 7 7 7 / ., F, w 774- . 77 „,.,.,.,:,:,.,,.....:,,c , opy,,/,A,51: ,..1 Nelliiii tigiA 7 7 7 77 11121 7 7 y j follim.i it q: O 7 7 77 7 O 7 tit/ en 77PAVIMO 777 400,4i fr) 7 , Aril 8 N N ., N 0 «, N N N II h o e /'` i t 114! i i �•-� �--� ?a Vit# 11.001 %At ��It 0 1:4 ailiag 1.) o ��� Ct as N .° o c4 0 cd U cd wN A. 0 til I.94.04 to uittilli O N VD a i, ° �° a avV1 o .� AI Q ~ b•A O mor , 0N .U OE ^� O ,, N U N 3 .UNN 'C N CO m H W* O N U ,4 > t +x Q cm-, u d Q rn W • .41 0 'r::,,,,::ft:::ki m• '';):..:',,zk 77 N M i--,,,, /i O M 7 7 7 N N , N N 7 7 ............. 77 foizE,f5gpipp j M -`'c4 M 7 7 7 mizeiv 4::::4 *RAO vi4,7.41 O 'IllN N ", N N L„ 7 7 ' � r-1 �--I cpm i -',f,7477.4":".4411 j S O M 7 M E � 7 77 77 7 7 O ' C 'i N • / N N �s= E �--1 "' w k o ct4 ',5,ttr4,,,...;,,,,..,„4,f: YT ,.r ... a, an IZi! �; U ` c`cti v v y °3 ,., •`• cd 1 •0 "ct CC= i ) ; S/ cd O +. CID ' ' .= cu Q+ _0' a N Q'd —N O O ..(1). - U U aAU C a) y p ccn p n 01.13d O ? cd U } O › cd r �;_ (14 ^" U athi4 ! JRa )a) uuIH!1!I :•,:J14,-- ; 1.0 • • i J N N M O; O N ,31 N N --- ars, N iJ/ ,--1 IArl 401 W d. 44107,74. 33 -' N N �j/ N N f r rl m M � M 0 0 O J ' N .A N N � tt O N cz ,. o 3 x off. a) CU a) o '- o U at - a ,�o o0.~ � � o et0 ,' 1. /i , N czt ° 9, \,• a x O 0 >E ,8 •4 O = z 0. -Tj cn .�'', :" r-, N V u 4 4) t,9 ! 0 0 • W Z ° o;,,,,-- -,--. -tc — 0 -to is: '' c3 .L, i -8 0 cp., . 0 P4 • c fp • •., ° A` a Q 0 ° a an a) U ¢, oma, . 0 � ° a) a.�j �. � a, a ¢, o on o aD o 0 0 o a) o 0 • ''''41;k4-';1;,:g Sod i�. ° Q+ N v a Q a a -0 • v7 „ as a 4 ,_, ct • APPENDIX E City of Elk River Strategic Industrial Marketing Plan Estimated Budget 2000-2002 S S N • N :'' N N bA w Pb i %;,. c ,,r, oo 'd 'ci 0 Pt o o M Rai 1 1 1 I:Q o yY o p • ~ N u N o w at C1 o 0 E N b C!1 W U a a CI CZ C 0 a .. rn "•W o.1= 5 Tom g N W •cc/) LI cd N o rQ. ,- Q k u) '. .^, ;4 W cl) O w N c - 1 U U O 0 0 Pii- = d 0 N N .. 0% 1 W 3 0 f N C E - PG 9 p4 O w c cnN E o cd .Ec4 cn d = - 76 = u, N it tg).. N a c.N U U' 2` ti UN +� TS "" cd .5c6-c6 c) 'o -5 O W w, ` 'C3 O 85 V] 0 4--' ; cd PQ p '^ 0 a- — cd o • t : flfl N -oE UQI j ,- > li O M ,55• '1,!;,!1..0i.‘ 505 C:N N N m. got O O M N &Kim 1666 O N OVD N moo N ow CIO Nita N M b4 b . I rim O Rei N Ikr) 4-1° 111 i C i • N F- H 671 n. p 1157 O aQ '3 '.. 91. or wH mos fAE cvs 1 101 0 out cip cll ~ • O bit ,L N ogoo U c, on a to 44.6 EgRP, o . a) E 0 C •zz 111110 E u 8 fitt 5° g0 cu amo icrj o -c) ° vsn, a 0 lo sue Lo cz O Ca Q. U Q ri Q R� U E� H —� [—� w a M 0 '::,:'•iiii;.' 101-4 N N C i i I idig C i , N Z il k Oy N N e- W Set il lei -ft O ' O I I • litraN 6, i g tit iiiiit 3„i .Cc O 'C r. a;. t W "O cC n L j i Ii ui 4I • >> O O ,-1 U V1'' ,- O i ›, 2 bA UU , p c,9 ,s�Tp = d c U:i. o 2 Q8' o": = ,,, ao u , w> :0),,A _...,1 Uou p ,n , ' Vti) UO rp p� U 0 el) a a 30 .cd 0 oo>, UNa U ' f_.x � � . � � ,,,,, • - - ,. , __ N7,_ _ _ N , ,O ,_ © tn 'y N Nb?- ,,,, W N iii e-1O N x' Y O O p ' O I 1 I I I O I • '% In N Hbs H -t •11 o -, ..O c. O .w., 0 N ril E 46 A 0-1 0 c4 4! 8 - 'd ^N E mE E N O O e. 8 O cd ^� 0 0 ,�, p O 73 cd cl pr V 0 . ¢+ � (ID bio c� O + ,-L. , "I:' c� cr. 5 '4) c9 r) , '6 0 g P, ��. '.t -0 --'t,c, O� a) O i O 1'., 0 Q711 0 c1 00 c-?-; •(4, 8 -=.,_. 8 8 E 8 ia' gi 0 7,1 O rx C/5 `4 v) V1 C% U A ra• U -0 O• cn 2FINICIEN4 , ,,„,„. tx 4— c, N O f N 111110?"',AO N .15 ONlel (2 O ' M comigni s linno r 99 99899. 1.1:1190//ate ,yrj 1 .s r - i l F/ ft ft, d- lispirgitil iher W` PaaMP OoI Q • _, N H la et/, , 3 y lititilO O '6 A U cd _ N ',',,f) x O " Q" a O vl 4 Z O N U O � ,0 V N ft :1r O3 N U 0 71 , 01. i—' C 11111111144� U `� O O 4O cd t,0 N > O O N v 0 W:J.,,Mili 0 › ,..0 2 .c-A DIH.-.- pq Qaa Q , A aQ as UI . ' *..,, .