5.0. 6.0. EDSR 12-13-1999 tyof _/
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TO: Economic Development Authority
I ' FROM: Paul T. Steinman, Director of Economic
Development
DATE: December 4, 1999
SUBJECT: Agenda Memo for November 8, 1999,
EDA Meeting
5. Selection of Marketing Consultant
The Marketing Committee is scheduled to meet prior to the EDA
meeting to conduct an interview with each of the two potential
marketing consultants and subsequently make a recommendation to
• the EDA. Two members have been added to the Marketing Committee
in addition to the five originally appointed by the EDA. The Marketing
Committee now consists of the following people:
• Jim Barthel, Elk River Machine
• Gary Santwire, Rivers Crossing, Inc.
• Chris Carlson, Sportech, Inc.
• Renee Sande, Elk River Area Chamber of Commerce
• Dr. David Flannery, School District #728
• Jim Simpson, Bank of Elk River
• Daryl Thompson, EDA/Council
Attached to this memo is the Marketing Committee agenda for their
Monday, December 13 meeting, and a letter that was sent to the
Marketing Committee on November 4, 1999.
After discussions with the individual Marketing Committee members,
it may be appropriate to allow more time for a recommendation from
the Marketing Committee on selection of a consultant. Should the
Marketing Committee not be able to make a recommendation
immediately following the interviews, then staff will propose that they
• meet again at a later date and bring forward a recommendation to the
EDA at its meeting on January 10, 2000.
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD &Phone: (612)441-7420 • Fax: (612)441-7425
EDA Agenda Memo
December 13, 1999,Meeting
Page 2
• Staff will provide a summary of the Marketing Committee meeting at
Monday's EDA meeting with the help of committee member Daryl
Thompson and President Pat Dwyer, who may sit in on the interview
sessions.
6. Update on Various Projects
Staff provides the following list as a basis for a verbal update to the
EDA. This will also be a good opportunity for the EDA to ask questions
and provide comments on these issues:
■ Micro Loans
■ West Business Park
■ East Business Park
■ McChesney Industrial Park
■ Business Incubator
The only action required is with regard to the micro loan discussion
wherein which staff recommends authorization to proceed with
negotiating a fixed interest rate on several outstanding micro loans.
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Economic Development Marketing Committee
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Agenda
Monday, December 13, 1999
Elk River City Hall
4-6 p.m.
4:00 Introductions
4:10 Outline Objectives of Marketing Committee -Paul Steinman
4:20 Questions and Comments from Marketing Committee
4:30 Interview-Anita Dukor, Dukor and Associates
5:00 Interview-Janna King, Economic Development Services
5:30 Discuss Proposals, Make Recommendation
1111 6:00 Adjourn
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November 24, 1999
Economic Development Marketing Committee:
Jim Barthel, Elk River Machine
Gary Santwire, Rivers Crossing, Inc.
Chris Carlson, Sportech, Inc.
Renee Sandee, Elk River Area Chamber of Commerce
Dr. David Flannery, School District No. 728
Jim Simpson, Bank of Elk River
Daryl Thompson, EDA/Council
Dear Committee:
Thank you for volunteering to provide your services to the Economic
• Development Authority by serving on the Marketing Committee. The purpose
of this letter is to provide information about the function of this committee and
to get the committee familiarized with its first major task.
Background
The Economic Development Authority has agreed to appoint you, along with
the six other individuals listed above to serve on a marketing committee. The
purpose of this marketing committee will be to work with a hired consultant to
develop an industrial marketing and sales plan for the city of Elk River. The
end product is to be a detailed, action-oriented marketing strategy which will
be implemented by economic development staff in order to obtain the final goal
of increasing the city's industrial base.
The first task of this committee will be to interview two selected consultants.
The selected consultant will work with the marketing committee over the next
approximately six-month period to lead the committee through the process of
development of a marketing plan. Regular monthly updates will be provided
by committee members to the full Economic Development Authority with the
final plan being presented in June or July, 2000. Proposals from the two
selected consultants are attached to this letter for your review. Staff proposes
to schedule the first meeting of the marketing committee which will include
interviewing the two consultants on December 13, 1999, 4 p.m. to 6 p.m.
13065 Orono Parkway •P.O.Box 490 • Elk River,MN 55330 • TDD &Phone: (612)441-7420 • Fax: (612)441-7425
• I realize it may be somewhat difficult for the marketing committee to come
together for the first time and be expected to interview and make a
recommendation of a consultant to the EDA. It is thereby important to note
that staff has prequalified both consultants and is competent in their
competence, knowledge, and ability to provide a high level of service to the
city/EDA/marketing committee. It will primarily be necessary for the
marketing committee to determine its level of comfort with a particular
consultant and secondarily to assess their skill level with regard to leading the
marketing committee and producing a quality project. The proposals from
both consultants vary greatly in their cost of service; however, either are
fundable through the EDA budget for the year 2000. Part of the interview
. process will be for the marketing committee to judge which of the consultants
has a price which most accurately reflects their proposed level of service, and
whether this consultant will be a good fit to work with the marketing
committee on this project.
Future Meetings
Staff anticipates the following meeting schedule:
• Monday, December 13, 1999 4-6 p.m.
- interview two consultants and make recommendation
• - take recommendation to the EDA that same night
• Monday, January 10, 2000 4-6 p.m.
- begin work with marketing consultant
• Monday, February 14, 2000 4-6 p.m.
• Monday, March 13, 2000 4-6 p.m.
• Monday, April 10, 2000 4-6 p.m.
• Monday, May 8, 2000 4-6 p.m.
Summary
In conclusion, the EDA will be depending quite heavily upon the marketing
committee for updates and recommendations as we proceed through to
completion of the marketing strategy. I plan to contact each of you by phone
prior to the first scheduled meeting of the marketing committee to answer any
questions or address issues you may have about the overall process.
•
• This letter will serve as your meeting notice for the first meeting of the
marketing committee scheduled for Monday, December 13, 1999 from 4-6 p.m.,
which will include two interviews with the interested consultants.
Please feel free to contact me with questions at 441-4905, or Marc Nevinski,
Assistant ED Director at 241-5526.
Sincerely,
jiez;);
Paul T. Steinman
Director of Economic Development
Attachments: Proposal from Janna King, Economic Development Services
Proposal from Anita Dukor, Dukor &Associates
cc: Economic Development Authority
• Marc Nevinski
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Duckor&Associates,Inc. h;,..• ••3141 Dean Court Phone 612.285-1033 Duckor&Associates
Suite 804 Fax 612.285-1044
Minneapolis,MN 55416 E mail DuckAGSD o aol.com
Paul T. Steinman
Director of Economic Development
City of Elk River
13065 Orono Parkway
P.O. Box 490
Elk River, MN 55330
November 8,1999
Dear Paul and Marc,
Subject: Proposal for the City of Elk River
Economic Development Strategic Marketing and Sales Plan
Duckor & Associates, Inc. is pleased to submit this proposal to develop an Economic
Development Strategic Marketing and Sales plan that builds a foundation for growth
for the City of Elk River. This proposal is organized in five parts:
•
• Benefits
) • Purpose, Approach, Scope of Work and Methodology
• Phases I-IV: Information Gathering& Analysis, Assessment, Market Strategy
Development and Strategic Marketing Planning with timetables
• Deliverable
• Professional Service Fee and General Provisions
Supporting information submitted with proposal includes Duckor&Associates, Inc.,
Proven Experience and Biography.
) The proposal is highly interactive with you, the elected officials, community and
business leaders and clients. The time schedules are dependent on your availability;
timely access to the City of Elk River elected officials, community and business
leaders, clients, and information.
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The City of Elk River will grow and prosper by this client driven, strategically
integrated, and actionable marketing and sales plan because it:
• Identifies client requirements and drivers
• Determines growth market segments
■ Develops strategies based on client requirements and City of Elk River's
features and benefits
• Aligns Marketing, Location Site Process, Promotion & Advertising Strategies,
ft and
• Identifies Challenges and Risks.
ftDuckor& Associates, Inc., is uniquely qualified to assist you in this important project
because of:
✓ Proven strategic and marketing planning in economic development at multi-
levels: city, region, state and private sector -
✓ Hands-on, practical working knowledge of economic development& business
✓ Proven visionary capabilities with practical tactics, and
✓ Collaboratively working with clients with high energy and enthusiasm.
I look forward to working with you and the City of Elk River on this exciting and
5 important assignment.
Best regards,
Anita S. Duckor
5 President
Enclosures (10)
cc: Marc Nevinski
Assistant Director of Economic Development
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...where city and country flow together
November 8, 1999
Duckor & Associates, Inc.
Offers
• Proven strategic and marketing planning in Economic Development
at multi-levels in both public/private sectors
• Hands-on, practical working knowledge of economic development
and business development
• Extensive training and working knowledge with process and
planning
ib Now • Proven visionary capabilities with practical tactics
♦ Collaboratively working with clients with high energy and
enthusiasm
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Client Driven, Strategically Integrated, Action Driven
Marketing and Sales Plan
Key Benefits
❖ Articulates a sustainable competitive advantage
❖ Targets potential market segments
❖ Enhances retention, expansion and new growth opportunities
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...where city and countryflow together
November 8, 1999
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❖ Builds and complements City of Elk River's 1998 Strategic Economic
Development Plan and the 1995 City of Elk River's Comprehensive
Plan
❖ Enhances understanding of clients and requirements
• Enhances Location Site Process strategy and tactics
❖ Provides a foundation for growth and increased tax base by building a
well-designed, long-term, consistent communication strategy including
an updated marketing materials plan
•
❖ Improves current and potential client satisfaction
•
• Provides a workable BluePrint with clients' measurements and monthly
reporting
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...Where city and country flow together
November 8, 1999
a
Purpose
To develop a strategic marketing and sales plan which
• Articulates a sustainable strategic competitive advantage
a • Describes features and benefits of the City of Elk River (the product)
• Enhances retention, expansion and new growth opportunities, and
• Outlines a comprehensive communication strategy including updating marketing
a materials' plan.
I
Approach and Scope of Work
Meeting your objectives requires a collaborative, integrated, and dedicated team
working toward a common purpose. An important feature of Duckor& Associates
1 III Inc. approach is the involvement of selected City of Elk River elected officials,
Economic Development Authority, Economic Development Staff, community and
business leaders (the Marketing Team), and potentially appropriate clients,
a throughout the process. This method ensures a dearer understanding of your
objectives and timely access to needed information, and also positions you to
implement the strategies developed. In other words, the strategic marketing and
sales plan is totally owned by you, the City of Elk River.
a City of Elk River Economic Development staff will •
1. Provide City of Elk River's information
2. Select Marketing Team
3. Select interviewees and schedule interviews
4. Help prepare with the consultant's direction the Assessment (Market Analysis,
Product Features and Benefits, Location Site Process), Market Strategy
Development and Strategic Marketing Planning sections
5. Arrange for meetings, provide meeting space and take meeting notes
6. Provide working space for consultant and administrative support, if needed
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Duckor&Associates or. •
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...Where city and country,flow together
November 8, 1999
Duckor &Associates, Inc. will provide project leadership and
1. The strategic marketing and sales process and plan format
2. Design interview questionnaire
3. Conduct interviews
4. Prepare for, lead and facilitate all meetings
5. Direct Economic Development Staff and Marketing Team members
6. Write the plan, and
7. Present the plan to the Economic Development Authority
Methodology
• Collection, analysis and assessment of current and pertinent City of Elk River's
information
{
• Interview select business and community leaders, elected officials and staff, and
clients
• Conduct planning/working sessions with Economic Development Staff and
Marketing Team
• Conduct on-going discussions with Economic Development staff, and
• Present findings and plan
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Duckor&Associates •
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...Where city and country flow together
November 8, 1999
a Information Gathering & Analysis—Phase I
Timeframe: TBD depending on Marketing Team's availability
a
a • Review City of Elk River's 1995 Comprehensive Plan, City of Elk River
Department of Economic Department's 1998 Annual Report and Strategic Plan
and any other pertinent work to date
a • Review Community Profile
1 • Review Business Retention& Expansion Survey Results
■ Review current location site package
•
• Review current location site process
a
• Review key competitors information, if available
• Review promotional and advertising materials: sales letters, brochures, trade
show exhibits, and print advertising
• Conduct 1 (two-hour) meeting with Marketing Team to:
• Develop team principles, clear roles and responsibilities and milestones
• Review current clients and identify potential clients
a
• Identify client requirements and key customer drivers from Marketing Team's
knowledge and understanding
a
• Identify the City of Elk River's strengths, weaknesses, opportunities and
a 40 challenges with Marketing Team.
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Duckor&Associates •
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...Where city and country flow together
November 8, 1999
Assessment—Phase II
Timeframe: TBD depending on interview schedule and Marketing Team's availability
)
• Conduct Market Analysis—Understand Markets and Clients
• Determine client requirements e.g. what are the drivers behind clients' stated
needs
) • Identify Targets & Clients
• Who makes the location site decision?
• Who influences the decision?
• Conduct Competitive Analysis •
• Collect and organize information on key competitors
• Develop a Statement of Purpose
• Develop a value proposition that articulates a sustainable strategic
competitive advantage
• Determine Success Measurements
• Develop client performance and satisfaction metrics
• Review City of Elk River (Product's) Features & Benefits and assess alignment
with client requirements
a
• Enhance Location Site Process
• Identify and assess requirements: System support, information, client
tracking and client profiles
a • Identify roles and responsibilities for staff
• Identify client contact points and ensure"Moments of Truth"
• Identify Challenges & Risks
• Identify dependencies or limitations
• Identify any Legal or Regulatory issues
• Develop contingency plan addressing the risks
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...Where city and countryflow together
a November 8, 1999
• Conduct select six interviews
• Conduct 1 (two-hour) meeting with Marketing Team to review the Assessment
work.
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Proposal for City of Elk River
Elk River...Where city and countryflow together
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Market Strategy Development—Phase III
) Timeframe: TBD depending on Market Team's availability
■ Develop Marketing Strategy, Objectives, Positioning
• Determine market positioning
) • Determine strategies, objectives, goals and tactics
• Develop measurement metrics
) • Review pricing strategy (e.g. Incentive Package)
) • Develop Sales Strategy
) • Determine lead generation approach: Direct, Mass, Website, economic
) development allies, alliances or?
)
• Develop client account planning process
)
) ■ Develop Promotion & Advertising Strategy to position and enhance the City's
) image
) • Medium Selection (e.g. direct mail, trade journals, business magazines,
trade shows)
• Message (e.g. Features and Benefits)
)
• Schedule & Frequency
)
) • Conduct 1 (two-hour)meeting with Marketing Team to review the Market
) • Strategy Development work.
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Duckor&Associates •
Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...Where city and country flow together
November 8, 1999
Strategic Marketing Planning Development—Phase IV
Timeframe: TBD depending on Marketing Team's availability
■ Draft plan
a
■ Design performance reporting process
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• Conduct 1 (two- hour)planning meeting with Marketing Team to
• Review plan
• Align and coordinate all aspects of plan
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■ Finalize plan
a • o Present Strategic Marketing and Sales Plan to the City of Elk
River's Economic Development Authority
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
Elk River...Where city and countryflow together
November 8, 1999
o Deliverable
Strategic Marketing and Sales Plan
•
1. Value Proposition—Sustainable Competitive Advantage
2. Three Year Objectives
a
1 3. Success Factor Measurements
a
• 4. Market Segmentation, Client Requirements and Drivers
1 5. City of Elk River's Product with Features & Benefits
1 6. Marketing Strategy, Objectives, Positioning and Tactics
7. Sales (Lead Generation) Strategy and Tactics
a
8. Location Site Process Strategy and Tactics
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9. Promotion& Advertising Strategy and Tactics
10.Challenges & Risks
a
11.Contingency Plan, if needed
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12.Operating Budget
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Duckor&Associates • •
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Economic Development Strategic Marketing&Sales Plan
Proposal for City of Elk River
110 Elk River...Where city and country flow together
November 8, 1999
Duckor & Associates, Inc.
Tax Identification #41-1932625
Total Professional Service Fee
$12,500
City of Elk River— Economic Development
Strategic Marketing and Sales Consulting Services
)
General Provisions
Payment Schedule
1/2 payment due upon initiation of project
• 1/2 payment due upon receipt of final plan
Invoices are payable upon receipt
Expenses for travel, lodging and related items will be billed in addition and shown
separately on Duckor& Associates, Inc. invoice.
1
Duckor& Associates, Inc. work will be a best effort and it is expected that the results
will meet the objectives sought. The recommendations and the written material we
provide will be our best judgment based on the information available to us. In any
event, Duckor&Associates, Inc. assumes no liability for this project.
This offer shall remain open for a period of 30 days from the date of letter, unless
extended in writing.
Acceptance
I appreciate the opportunity to work with you on this important assignment. Please
sign and return the endosed copy of this proposal to authorize the agreed to work.
Presented by
Accepted by
Duckor& Associates, Inc. City of Elk River
° By: Anita S. Duckor
By:
President Title
Date:
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Anita S. Duckor
Ms.Duckor brings over twenty years of business experience and
s a strong strategic management,product development,marketing and
=- sales management and process expertise.Her career is focused on
business and product development resulting in strategic advantages and
1110 building strong customer and community relationships.She's a decisive
strategic thinker focused on the customer and bottom-line results.
•
Career Highlights
Twenty years of increasing responsibilities in the energy and energy services industry.
Managed multi-million dollar annual budgets and various departments (Electric Delivery Marketing,
aEnergy Plus Services, Market Research, Community & Economic Development, Community Service
• Managers, Customer Service Planning and Competitive Analysis with Northern States Power Company,
and Energy Services Marketing and Sales, NORENCO Corp.). She held various positions in the
Dfollowing industries:telephone,insurance, real estate and restaurant. Developed a vast network and
resource referral system on a wide range of business development and community boards.
Proven strategic thinking and planning skills and business and product development efforts.
Authored and directed key growth plans for Northern States Power Company. Directed and
adeveloped strategic business unit plans and corporate wide community investment strategic plan.
Led and co-authored a business plan for the state's marketing organization,Advantage Minnesota.
Demonstrated results-driven marketing and sales capabilities. Co-led the Primergy Energy
Services Process Team (potential merger between Northern States Power Company and Wisconsin
Energy Corporation.) Co-authored the Energy Services Business Case including vision,business
objectives,marketing and sales organization and process design for a $4 billion company. Developed
aand managed successful business and product lines building brand loyalty and achieving business goals
for the $2 billion retail delivery business.
Developed and managed several sales departments and achieved annual sales goals.Established
communities as key accounts; co-authored the community account planning process and training.
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Demonstrated administrative and organizational skills. Successfully designed and built three key
marketing and sales departments and successfully merged and rightsized several departments.
Active as a business and community leader.Actively participates on a wide variety of business
I • development and community boards.Appointed by the Governor of Minnesota and the Mayor of
aSt. Paul and others to serve on a variety of commissions and boards.
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Anita S. Duckor
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Education
Bachelor of Science degree, with highest honors and distinction (Outstanding Graduate Award) in
Business Administration from San Diego State University. Graduate of the Minnesota Executive Program,
Curtis L. Carlson School of Management Executive Development Center; Public Utility Executive
Program, University of Michigan, School of Business Administration; and the Economic Development
aInstitute, University of Oklahoma (received the Howard Roepke Award, top award given for the thesis
• of most outstanding value to the Mid-America Area Development Profession). Instructed at the University
of Minnesota, Duluth, for the American Economic Development Council accredited program.
Listed in Who's Who of American Women,Who's Who of Emerging Leaders in America, and
International Who's Who of Professionals.
11 Memberships: American Experiment, Citizens League, Economic Development Association of Minnesota
Minnesota Chamber of Commerce.
Current board memberships
CommonBond Communities
Hubert H. Humphrey Institute of Public Affairs, University of Minnesota,
State & Local Policy Program Advisory Council
The Friends of the Minneapolis Public Library
Minnesota High Technology Association
Sanford Middle School, Site Council
Past board memberships
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Advantage Minnesota Inc., Economic Development Advisory Board
Community Reinvestment Fund, Inc.
Economic Partners for Southeastern Minnesota
Eloigne Corporation, a subsidiary of Northern States Power Company
Jungle Theatre
Melpomene Institute
Minnesota Film Board
) Milestone Growth Fund
Minnesota Industrial Development Association
Minnesota Project Innovation, Inc.
11 • Minnesota Real Estate Journal, Editorial Advisory Board
Minnesota Women's Network
) Metro East Development Partnership
) National Association of Energy Services Companies (NAESCO)
St. Paul Chamber of Commerce
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• Proven Results
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Strategy Formulation and Planning
Led strategic planning for several organizations:Community Reinvestment,Inc.,Metro East Development
Partnership,and Minnesota Film Board.
RESULTS: Board approved plans and respective organizations'achieved goals.
Directed and developed five-year strategic business plans over 8 years for Northern States Power(NSP)Customer
Service and Electric Marketing and Sales.
RESULTS: Achieved alignment between Customer Service and Marketing improved efficiency and drove retail
electric sales of$2 billion annually.
Sponsored,led and developed first corporate-wide community investment strategic plan for NSP.
RESULTS: Identified and aligned over$40 million investments and increased electiveness for community
programs and community relations.
Developed first comprehensive three-state Economic Development strategic plan for NSP.
RESULTS: Launched over 10 successful products and services including venture fund investments and
411 industrial park development.
Helped develop and launch 20 county Economic Development strategic marketing plan for Economic Partners for
Southeastern Minnesota.
RESULTS: Achieved a regional economic development plan and enhanced the coordination and working
relationships among members.
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Business and Product Development Initiatives
Led and co-authored business plan for Advantage Minnesota,the State of Minnesota marketing organization.
RESULTS:Established first public-private marketing organization for the State of Minnesota.
) Directed and developed an Affordable Housing Investment business plan for NSP,establishing Eloigne Corporation.
RESULTS: Achieved annual goals of affordable housing investments and earning an above average utility
rate of return.
) Authored NSP's first Energy Services business venture plan(NORENCO Corp.).
RESULTS: Identified a$65 million market,developed an energy service market niche,and achieved$28
million in sales.
Directed and sponsored the Outdoor Lighting business plan for NSP.
RESULTS: Identified a sizable attractive market;re-organized and aligned resources to achieve business
objectives and goals.
aDirected and developed Economic Development programs for NSP.
RESULTS:Achieved annually$5 million energy revenues,jobs created and private capital investment goals.
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Marketing and Sales
Established first retail Electric Delivery Marketing Department for NSP.
RESULTS: Improved customer satisfaction to protect the$1 billion delivery asset base;directed the
development and management of products and services for retention and growth.
Co-led Primergy Energy Services Process Team(proposed merger between NSP and Wisconsin Energy Corporation).
RESULTS: Developed and co-authored business case including vision,business objectives,marketing and sales
organization design and process design for the$4 billion company.
Directed NSP's Energy Plus Services product line.
RESULTS:Achieved$5 million annual sales.
Established communities as key accounts for NSP,co-authored the community account team plan,and process and
training.
RESULTS: Improved account-planning process and enhanced community relations with over 150 communities.
. Developed and managed the U.S.Department of Energy"Energy Services-Shared Savings Pilot Program."
RESULTS: Developed NSP'sjirst Energy Services Business Case.
Developed and managed demand side management and conservation marketing programs for all markets,induding
point of purchase and major media for San Diego Gas&Electric Company.
RESULTS:Achieved program goals and received advertising awardsfor winning campaigns.
Communications Planning and Strategy
Directed and developed communication plans including strategy,positioning,objectives,and medium for NSP's
Electric Delivery Marketing,Energy Plus Services and Community&Economic Development.
RESULTS: Enhanced customer satisfaction,achieved sales,improved customer relationships and received
awardsfor promotional campaigns.
Helped develop NSP brand and positioning as a founding member of the Brand Council for NSP Corporate.
RESULTS: Strengthened NSP brand and improved corporate identity.
Designed and implemented advertising and public relations strategy and plan for NORENCO Corp.
RESULTS:Achieved awareness in marketplace and helped achieve sales goals.
Helped design and develop St.Cloud Area Economic Development Partnership's marketing and sales plan and
promotional materials.
RESULTS: Achieved economic development goals.
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Non Profit Strategy and Design
Shaped policy for the Minnesota Sustainable Development Initiative as a member of the Minnesota Environmental
Board's Manufacturing Team.
RESULTS: Developed statewide study which shaped state sustainable development policy and enhanced
relationships between the manufacturing and environmental sectors.
Shaped and developed the City of St.Paul's"Citywide Economic Agenda",the strategic economic development
strategy.
RESULTS: Developed community-based plan which shaped the city's economic development efforts.
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Co-chaired Enterprise Development and shaped"Building our Future"Regional Strategies for Economic Opportunities
for the Minneapolis Chamber of Commerce.
RESULTS: Educated and created awareness of keyregional issues for the public,private and educational
entities.
0
Assisted with human resource policy and procedures for Community Reinvestment Fund,Inc.,Metro East
Development Partnership,Minnesota Project Innovation,and Minnesota Film Board.
RESULTS: Improved organization's e�ciencyand effectiveness.
0 Presented and moderated at several economic development policy forums i.e.(1)Innovations in Economic Development:
The Evolving Direction of Economic Development in the New Economy and(2)Economic Redevelopment of Brownfields—Its
Importance to the Region Economy.
RESULTS: Educated participants and continued to shape overall development policies.
Administrative and Organization
Recommended Compensation Policy for the State of Minnesota as member of the Minnesota Compensation Council.
RESULTS: Recommended a Compensation Policy re,reflecting market-based pricing recommendations.
Participated in the City of St.Paul's Re-engineering Initiative.
RESULTS: Achieved a highlyfocused,streamlined Planning and Economic Development Department.
Successfully merged three NSP departments:Community Development,Economic Development and Community
Service.
aRESULTS: Achieved greater efficiency,reduced costs and improved alignment of resources.
)
410
a
Economic
Development
Services
November 2, 1999
Paul Steinman
Director of Economic Development
City of Elk River
PO Box 490
Elk River, MN 55330
RE: City of Elk River Economic Development Marketing Plan
Dear Paul:
Thanks for the opportunity to visit with you and Marc Nevinski regarding the marketing
plan for Elk River. The community has established the critical foundations needed prior
to pursuing more aggressive marketing activities. Congratulations!
The marketing approach proposed for Elk River is grounded in market research and the
application of private sector marketing principles to economic development. In addition,
I can share with the committee economic development marketing successes and failures,
and important nuances of the greater Twin Cities market.
Thank you for this opportunity.
Sincerely,
Janna King, CED
3722 West 50th St., #204 Minneapolis, MN 55410
(612) 925-2013 Fax(612) 925-2942
email:jking@econdevelop.com
Proposal to Provide Consulting Services
City of Elk River— Economic Development Marketing Plan
BACKGROUND/PURPOSE
In the past several years, the City of Elk River established the critical foundation for
successful economic development. Industrial land is ready, economic development
financing tools, a capable staff and supportive local government are in place. Marketing
these assets is the next step. The community is establishing a committee to guide the
marketing effort.
Economic Development Services will work with the staff and committee to develop a
detailed economic development marketing plan, including timeline and budget estimates.
PROCESS
Market assessment: Economic Development Services will conduct a market assessment
as a first step in the process. The assessment includes the following components.
• Internal perceptions—Information will be gathered and summarized on current
industrial park tenants including their SIC code, community of origin, reasons for
locating in Elk River, and current perceptions of its strengths and weaknesses as an
industrial location.
• External perceptions—Telephone interviews will be conducted with 5 - 7
metropolitan site selection firms and industrial brokers to determine their perceptions
of Elk River and its primary competitors. Interviews will be conducted, if possible,
with organizations that considered Elk River and selected an alternate location.
• Competitive assessment—The strengths and weaknesses of 7-10 competitive
communities will be assessed to most effectively position Elk River. The data used
by industrial site location professionals will be employed to understand how the
market is likely to perceive Elk River.
• History of inquiries— A history of inquiries and prospect activity will be reviewed to
identify trends such as size of company, SIC code, communities of origin, and other
factors.
Strategy Development: The Marketing Committee will participate in developing the
marketing strategy in a series of 4—6 meetings. The following elements will be
included.
• Economic Development Marketing—Committee members will be provided with an
understanding of economic development marketing including key audiences,
decision-makers, key factors in site location decisions and marketing techniques (use
of brochures, advertising, direct mail, special events, electronic media, etc.).
• Elk River and its Competition- The market assessment of Elk River as a site location
will be presented to the committee for their review and discussion.
• Facilitated sessions—Committee members will participate in developing the
marketing strategy through facilitated discussions designed to identify key audiences,
geographic and sectoral targets, image, messages, marketing techniques(use of
1
}
brochures, advertising, direct mail, special events, electronic media, etc.), prospect
follow-up, relationship building, and closing.
• Economic Development Marketing Plan—Economic Development Services will
provide the committee and staff with several alternatives to marketing Elk River as an
industrial site location. A final plan will be prepared based on committee input.
DELIVERABLES
Economic Development Services will prepare an Economic Development Marketing
Strategy with recommendations for image, target audiences and key messages. The plan
will detail the following:
• the development of additional publications;
• the use of direct mail, electronic media, advertising and special events;
• the involvement of allies and existing industry; and
• techniques for prospect follow-up, relationship building and closing.
Recommendations on tracking the effectiveness of the marketing campaign and updating
the plan will be provided. The plan will include timelines, accountable parties and
budget estimates.
The plan will cover a 2-3 year timeframe. It is important to update the plan at the end of
the second year or beginning of the third, to identify changes in the market and assess the
effectiveness of marketing activity to date.
Economic Development Services will provide the city with a summary of the Market
Assessment that provides the foundation for the Strategy Development.
The proposed project cost includes three bound copies, one copy suitable for
photocopying and one electronic copy of the Economic Development Marketing Plan and
the Market Assessment.
TIMELINE
The following timeline is somewhat flexible, but represents a realistic pace for many
communities, recognizing the busy lives of volunteer committee members and the value
of advance mailings.
Market Assessment—4 weeks
Strategy development— 10 to 12 weeks
Final Plan preparation—2 weeks
I understand that you plan to start committee activity after the holidays. I would be
available to begin the market assessment in December 1999 or early 2000, depending on
your goal for project completion.
COST
Total project cost will be $6,000, including expenses.
2
Economic Development Services
Economic Development Services provides its clients with strategic and operational
guidance in the economic development process. Relying principally on the
expertise of Janna King, a Certified Economic Developer with over twenty years
? of experience in the profession, the organization draws on the expertise of other
professionals as needed. Economic Development Services brings a high level of
expertise and energy to every project, enabling its clients to achieve their goals.
Areas of competence include:
• strategic planning for community/regional economic development
• research and strategy development-including data analysis, surveys,
interviews, focus groups and facilitated strategy sessions
• effective economic development marketing
• economic development policy, including financing and incentives
• transportation/economic development issues
• workforce development
• industrial park market analysis
• tourism development
• non-profit administration, planning and budget development
Janna King, CED
Janna is the owner of Economic Development Services. She has over twenty
years of experience in economic development—fourteen years in a leadership role
in communities in Minnesota and Texas and six as a consultant. Working at the
community level, she was involved with projects creating over 3000 jobs and $50
million in capital investment.
Janna received the Economic Development Financing Certification from the
National Development Council and is 1 of 800 professionals in the country
designated as a Certified Economic Developer by the American Economic
Development Council. She has served on the board of the Minnesota Industrial
Development Association; as founding president of a statewide SBA 504
company in Austin, Texas, and was an active participant in the Texas Marketing
Team. In 1997, she co-founded TC Web, a consortium of key economic
development web sites,to make Twin Cities economic development web sites
more accessible to site location decision-makers.
Janna graduated magna cum laude from Gustavus Adolphus College, and pursued
graduate coursework in Urban Studies at Mankato State University. She currently
serves on the Economics and Management Advisory Council at Gustavus.
3
'. Economic Development Marketing Qualifications
Janna King has taken marketing courses and attended several nationally recognized
1economic development marketing seminars, but believes that experiencing success and
failure is the greatest teacher.
Under Janna's leadership, the Midland Texas Chamber of Commerce was recognized for
gn
• its successful marketing efforts. California was a geographic target of the Chamber;
within three years the community was recognized in the Wall Street Journal for its
attraction of California firms. The American Economic Development Council
recognized the quality of the Chamber's marketing materials. The general economic
development brochure received one of three"Best of Show" awards, from a field of over
800 entries; a customized proposal received a"Best of Class" award.
While King has work experience and clients in other parts of the country, she understands
the nuances of the Minnesota marketplace well. For ten years, she worked in the St.
Cloud-Little Falls area and has consulted primarily in the Twin Cities and adjacent
communities for the past six years. This experience provides her with practical insights
into the market dynamics affecting Elk River.
Selected Client List
Northern States Power, Minneapolis and St. Cloud, MN
City of Becker, Minnesota
Sherburne County, MN
City of West St. Paul
Jordan Economic Development Authority, Minnesota
Northco Corporation/Red Wing Port Authority
Cambridge Development Corporation
Central Minnesota Initiative Foundation
Metropolitan Light Rail Transit Joint Powers
Board—Access to Jobs study
City of Roseville, Minnesota
Central MN Development Corporation( SBA 504 company) Coon Rapids, MN
Hoisington, Koegler Group, Inc. —City of New Brighton and City of Ramsey
Saint Paul Chamber of Commerce, Saint Paul, MN
Cottage Grove Economic Development Authority, Cottage Grove,MN
BRW, Inc., Minnehaha Corridor Development Strategy
Dakota County Economic Development Partnership
Ticknor and Associates—Harrison County, Indiana and Franklin, Wisconsin
4
Ak ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
TO: Economic Development Authority
FROM: Marc Nevinski,Assistant Director of
Economic Development
DATE: December 13, 1999
SUBJECT: Micro Loan Fund Interest Rates
Issue
Staff is proposing that the eight outstanding micro loans with variable
interest rates be renegotiated with fixed rates.
Background
Revisions to the Micro Loan fund policies earlier this year included_a
.
provision establishing a sub prime, fixed rate of interest for each loan.
However, prior to the policy revisions, loans were negotiated with variable
interest rates and adjusted every six months. Subsequently, the city's
Finance Department spends a considerable amount of time managing these
variable rate micro loans.
Presently, the Micro Loan Fund has eight outstanding variable rate loans.
• Beaudry Convenience 8.00% • LeFebvre Leasing 8.25%
• Carpe Kairos 8.25% Second Generation
• Galli Equipment 6.00% Properties 8.25%
• Galli Real Estate 6.00% • Water Laboratories 7.75%
• Indy Lube 7.75%
Recommendation
Staff recommends that the EDA authorize the renegotiation of a fixed rate of
interest for the above Micro Loans at their respective rates listed above.
Attachments
• Summary of Micro Loans through November 30, 1999
• Micro Loan Fund Balance Sheet
•
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
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MICRO LOANS
• Current Current 11/30/99
Loan Loan Interest Term Monthly Principal
Borrower Date Amount Rate (Months) Payment Outstanding Current
AIltool (1) 6/1/89 $200,000 9.00% 120 $2,533.52 $0.00
Beaudry Convenience * 12/28/93 850,000 8.00% 120 $610.35 $25,862.74 Y
Carpe Kairos * 8/10/95 $50,000 8.25% 180 $485.52 $41,440.80 V
David Decker 8/5/98 $50,000 8.50% 60 $433.91 $49,004.91 Y
Designing Women * 2/18/93 $21,500 7.75% 180 $32.82 $0.00
Elk River Automall * 11/24/94 $50,000 7.75% 180 $474.83 $0.00
Galli Equipment * 12/29/95 $32,500 6.00% 180 $474.78 $16,784.77 Y
Galli Real Estate • 12/28/95 $17,500 6.00% 180 $147.67 $14,472.00 Y
Indy Lube * 10/28/93 $24,700 7.75% 180 $233.68 $18,129.65 V
Ink Wizards 8/4/98 $50,000 8.50% 60 $433.91 $48,830.71 Y
Internet 5 1/30/96 $37,500 8.75% 60 $773.90 $10,988.34 Y
LaRose Enterprises 3/29/94 $25,000 6.00% 84 $365.21 $7,013.75 N
LeFebvre Leasing * 5/8/97 $50,000 8.25% 60 $998.49 $26,984.08 Y
Northstar Die Casting 1/29/98 $50,000 8.50% 60 $1,025.83 $43,457.11 N
• Olde Main Eatery 10/15/97 850,000 8.50% 180 $492.37 $46,722.34 N
Pomeroy Tool 7/1/92 $25,000 6.50% 180 8217.78 $15,480.38 Y
Pro Tech Engineering 11/30/99 850,000 7.25% 36 $456.43 $50,000.00
R&D Sales * 12/8/93 $17,500 7.75% 180 $36.26 $0.00
Roma Tool (2) 7/1/91 $500,000 1.00% 240 $2,643.25 $362,668.02 Y
Second Generation Properties * 11/23/92 $50,000 7.75% 240 $408.09 $40,190.22 V
Sport Tech 11/2/98 $45,000 8.50% 36 $390.52 $43,972.49 Y
Water Laboratories, Inc. * 5/5/94 $15,000 7.75% 180 $142.29 $11,360.04 Y
TOTAL MICRO LOANS $1,211,200 $11,220.43 $746,488.09
DTED LOAN
Tescom* (3) 4/22/94 8250,000 4.50% 120 $2,590.98 $126,874.26 Y
TOTAL LOANS $1,461,200 $13,811.41 $873,362.35
(1)The City retains the first$100,000 of principal plus interest. The remainder is payable
to the State.
(2)The terms of this loan were renegotiated in 1991;the renegotiated terms are as listed.
Monthly payments increase to $2,643.25 on January 1, 1997. The City retains the first
$100,000 of principal plus interest. The remainder is payable to the State.
• (3) The City retains all principal and interest payments from this DTED Block Grant.
The payments are credited to the DTED Micro Loan Fund for use
under the guidelines of the DTED Block Grant program.
Microlns.xlw
*Variable Interest Rate. 12/9/99
BALANCE SHEET
NOVEMBER 30, 1999 Date: 12/09/99
Time: 11:10am
MN CITY OF ELK RIVER Page: 1
11/30/99 Balance
Fu Type: SR SPECIAL REVENUE
Fund: 240 MICRO LOAN FUND
Assets
CURRENT ASSETS e,
1010 Cash 362,30955 AAs of NOV Un, 1911
1012 Fair Value-Investments .00
1190 Notes Receivable 951,970.68+ — A-C6' OF t7r�,,1c`1S
CURRENT ASSETS 1,318,321.23
Total Assets 1,318,321.23
Liabilities
CURRENT LIABILITIES
2080 Due to Other Governments 400,677.71
2220 Deferred Revenue 551,292.97
CURRENT LIABILITIES 951,970.68
Total Liabilities 951,970.68
Reserves/Balances
FUND EQUITY
2400 Fund Balance 326,968.33
2600 Change In Fund Balance 39,382.22
• FUND EQUITY 366,350.55
Total Reserves/Balances 366,350.55
Total Liabilities & Balances 1,318,321.23