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6.0. EDSR 10-09-2000 Item 6. ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MEMORANDUM TO: Economic Development Authority FROM: Cathy Mehelich, Director of Economic Development DATE: October 9, 2000 SUBJECT: Development Project Updates Staff will provide a verbal update on several development projects that are underway, including the Ripplinger/Norha project, SoftPAC project, upcoming joint HRA and City Council meeting, and also a possible development for the Holt & Jackson site. • Staff has received a request by the River City Snow Riders Club to acquire a permit to build a snowmobile trail along the railroad & wetland area of the EDA's old Brown property in the East Business Park. Staff is working with planning and engineering departments for review of the proposal. • 13065 Orono Parkway • P. O. Box 490 • Elk River,MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment Minnesota Manufacturer' s Week MINNESOTA MANUFACTURER'S WEEK Aggregate Industries ri7 Elk River Block PlantTour ".� c0000j 40, RSVP by October 13,2000 Marc Nevinski ) • Phone: 763-241-5526 Fax: 763-441-7425 Email:mnevinski@ci.elk-river.mn.us In recognition of manufacturing's role in the Minnesota and Elk River Economies, you are invited to tour the Aggregate Industries Elk River Block Plant on Tuesday, October 17, 2000 Directions from Elk River 9:30-11:30 AM Take Hwy 169 North to County Road 33. Turn Refreshments will be served west onto CR 33. RSVP by contacting Marc Nevinski at 763-241-5526 no later than Aggregate Industries • will be on your right. Friday, October 13, 2000. Space is limited. Meet in the lobby. 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ON,:a.,,..,.;: .. ,saea .,., COMPANY SMALLPRINT The Entr Twin Cities bush ByMark ReillyVERTICAL PUBLISHING ed onto Web-site templates. founded consulting between Plymouth Staff reporter "They use the same system • HELPS PUBLICATIONS As three Elk River entre- theyalready use;they just send preneurs plan big things for EXPAND ONLINE us an extra copy," Held said. their new online publishingDIANnwnrreRs He estimated that Vertical ; company, .they're thinking Publishing's services would ,� small as in small print runs ' '''''',,.,',!.Q1044.:. + , cost about $40,000 a year — ,,;z. Their new venture, called less than the cost of an adds- Vertical Publishing Inc., offers u , tional technology employee, print-media outlets an easy way ;t he noted. to convert their content into • The firm was founded by Web sites. The firm, which ,E " ,t Held and two colleagues in the Wit rat , launched operations a few �' °, ,, U r a� Duluth offices of Advanstar weeks ago, is targeting small a}; 1 , '- Communications Inc., a medical device and publications — obscure trade r"�r • a '-##i' . d Cleveland-based trade journal t t d fi a J Wetterstrom fo ..ma at*,g, a journals,chamber of commerce � �#I,�w # '.144';'''‘,.',7. , � ,z � publisher. The trio felt there Associates—in IS newsletters and other periods t4, W }!`� , " was a market in assisting small- '',01 mall- enue of$54 millior • cals that because of their size � � ` P scale publishers,so they struck fast-growing �ivatr �$Y� dad,<�� " p ti "*k,t out on their own.None of them headquarters to N can't afford to run a Web opera- �� � *^4: 4tr tion in-house. �'''.4,t, � ` . "t was a software developer, so # c The company, founded in „„4.14.,'.,.x , � , they partnered with MMP, a f''Ilet.3U�s rl " British firm that had developed January,. recently signed its ��l�a.�r, , ., first customer, BBN $" Littoralis to serve much the He may not hav Publishing Inc. of same market in Europe. Noah will have a vi, Minneapolis. BBN, whichThey also sought backing organized for doze publishes the monthly ,, .„-,t-;,'; and counseling from Gateway The National Er Minnesota Business, also pro- ,. Affiance II,an Elk River-based 50 firms(half from duces magazines for several "h incubator affiliated with potential investors, chamber of commerce groups. investor Harlan Jacobs. The Startup CEOs offer, David Held, co-founder of r, firm is now working on raising firms and attended 1 di . Vertical Publishing, said the $2 million in financing. Inc.and Minnetonk firm is in talks with about 20 David Held said his firm is in talks with 20 _ Held estimated there are The NetSuds H other potential clients. The small to mid-sized publishers who want to perhaps 35,000 print maga- Tuesday at the U.5 develop a strong Internet presence but prospects represent a variety ofdon't have the resources. zines in Vertical Publishing's ture tours of Visi.c industries,but share some sim- target niche of business publi- more information ilar characteristics: They're all software let BBN establish a search- cations —representing a poten small and mid-sized publishers who able archive — an increasingly tial market value of more than $1 + want to develop sophisticated essential feature for media sites — billion based on Vertical's annual Internet units but don't have the and move its other publications software fees. But other players are �, V. resources. online. "It's a far superior site now eyeing the small-publisher field as il "They're generally seeing online than what we had,"McNiff said. well: R.R. Donnelley & Sons, Chicago,has alreadylaunched its E- a ° 'tai "'v'de" d° competition from two sides; from The advantage of Vertical g ° Americabut some l larger print competitors as well as Publishing's system, Held said, is Publish service, though Held said .,„,,,,„'.4..„.. ..-t from new Web-based startups," that it requires little extra effort by .that venture is primarily targeting '; r, i i'4, Held said. "We offer them a way toconsumer publications. " " the publication.When a ma azine is 0 move quickly into the Web arena." ready to be printed, editors typically McNiff said BBN had consid- Caucasian " BBN had already maintained a deliver an electronic file of the edi- ered using E-Publish before decid- Web site for Minnesota Business, tion to their printer,which then prints '"''''Atriitair4iiiii146a ing Vertical Publishing's package but grouppublisher Peter McNiff was more flexible."They're smaller, " Hispanic American the. file. Vertical Publishing uses �,� said its content was limited to a licensed software, called Littoralis, but they give you the feeling that " mn�;p„ " `this month, last month' kind of that instead converts that file into they're ambitious and will get things All households thing"Using the Vertical Publishing Web documents, which can be post- done." ■ • c� E� °mm >',� ' and �0 +7 '. 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G..Q g ara ) - •�y U m �i w .,.. ,a 6'u c" �';. �' �0 3 5lw "L' . .1 ,1:0 u c._ 3 g Vcoh a3g- 8''4 ' T] j8o °,° W 6'nU=,,cE...°ccsaei �ma m ` a. •.. 0 0 0 • October 6, 2000 Dear Marc and Cathy, This informal update may be useful for your report to the Elk River EDA. As you know, whenever we find an entrepreneur we describe to the entrepreneur the different communities that are clients of Genesis Business Centers,Ltd. We let the entrepreneurs know about the features and benefits of each program. The entrepreneur then makes a decision to look seriously at one or several of the communities. Sometimes they find Elk River to be an attractive situation as was the case in the last six months with Integrated Power Solutions and Vertical Publishing. The Elk River location tends to have specific geographical strengths and weaknesses with a given entrepreneur depending on his/her own personal or family or other orientation to geography. Today, there are no immediate additional prospects to enter the incubator program in Elk River. That could change in a day or a week or a month or longer. It's hard to plan or predict when one will come along and then when Elk River will be attractive or not. There is much that Genesis does and has done to enhance the deal flow of attractive candidates for all of our client communities. Recently, Genesis paid over$14,000 for a full page advertisement in the Star Tribune. In the article we highlighted our involvement • with the City of Elk River by inserting the logo and the photo of the incubator sign. We will provide you with a sizeable number of reprints; please advise your needs. We also highlighted our relationship with the ASCCF/ACEDP and our role in helping to establish the Anoka County Model as well as our other present and former clients. We believe that this advertisement (which has been reprinted for long term circulation) will significantly raise the visibility of Genesis and more importantly our client communities. We are taking other steps to help bring quality high tech jobs to Elk River. We continue to work with Mark Bendett of Northstar Photonics and indirectly with ADC Telecommunications. We are striving to help both of these companies to establish operations and high wage jobs in Elk River. Recently, an initiative that we helped to focus; identified a significant potential at St. Cloud State University to educate talented candidates for employment on Northstar Photonics. Further, Mark is working with Genesis to help launch a photonics corridor in the Elk River area along Hwy 10 up to St. Cloud. We are working to attract more entrepreneurs in this burgeoning field. Later this month, in a somewhat related matter, Genesis is bringing Mr. Anders Nordstrom, the head of the Finnish incubator association, to Minnesota. We will meet with the Elk River EDA, the ASCCF, ACEDP, Northstar Photonics and other groups for the purpose of mutually acquainting the parties with the high tech companies and centers of excellence that exist in Finland and here in the twin cities. The goal is to establish . 'sister city'relationships between technology centers and companies in Finland with technology centers and companies here in Minnesota. As a Genesis client community, ID Elk River will be highlighted to Mr. Nordstrom. In summary, we continue to work diligently to put Elk River's best foot forward whenever an exciting incubator prospect may exist. Over the long term we are confident of great results from our program and our collaboration. Regards Harlan PS I am traveling with Mark Jenson of Integrated Power Solutions to Finland and Sweden on 15 October. We hope to return with a written contract for an investment of$5 million from a group of investors from Finland and Sweden. This bodes well for the long- term success of the company and its prospects for creating a substantial number of high wage jobs in Elk River. • •