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7.0. EDSR 09-08-1997 ITEM #7 o py • ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MEMORANDUM TO: Economic Development Authority 2r.." ___FROM: Paul T. Steinman, Director of Economic Development DATE: December 31, 1996 SUBJECT: Strategic Planning I. PURPOSE OF MEMO The purpose of this memo is to describe the process and activities which will be undertaken at the EDA meeting on January 6th regarding the industrial base action plan for strategic planning. II. OVERVIEW The Strategic Planning Task Force, at its last meeting, attempted to undertake the process of action planning on the first of four prioritized strategic issues - Industrial Base. After some discussion by the Task Force, it was determined that it would be appropriate for the EDA to step into the strategic planning process and complete an action plan for the industrial base issue. Such action plan, as directed by the Task Force, is to include the following key component: • expand the number of acres of land zoned I1/12 or Business Park to approximately 300. It may be necessary for the EDA to hold one more meeting in January in order to complete its action planning tasks. The HRA will be undertaking the process of action planning on the Downtown Redevelopment strategic issue at its meeting on January 27th. The Task Force will then be meeting on February 5th to pull the final pieces of the strategic plan together. • Staff will have available at this meeting the estimates for construction of improvements in the western business park area. It is not P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment Strategic Plan Memo December 31, 1996 Page 2 anticipated however, that a great deal of discussion will occur regarding the cost implications of the potential purchase of business park properties. As staff has indicated, the purpose of this meeting is to map out specific areas where industrial opportunities can occur, and proceed with action planning which will likely include rezoning and other processes in order to accommodate industrial development in these areas. Other implementation steps will include negotiation of joint development and marketing agreements, and a financial analysis of business park property including cost to purchase, improve, etc. This information will then be brought back before the EDA and City Council to be used to address the question of whether to pursue the purchase of property in the business park area. III. PRIMARY ISSUES TO CONSIDER The EDA has the following primary issues to consider for discussion at this time: • What are the criteria to be used to identify appropriate industrial sites? The criteria which staff has used to identify options for industrial sites include the following: - utility availability - present (0-1 year) and future (1-5 years) - current zoning/land use - surrounding land uses — market potential - transportation/access - topography — soil conditions (i.e. wetlands) For the purposes of this exercise, ownership of these possible industrial sites was not considered to be an appropriate criteria. • What are the industrial sites which staff has identified? Staff has included in your packet a zoning map with the identified Urban Service Boundary (USB) and proposed 410 transportation corridor connecting County Road 13, 12, and Highway 10. (If not attached to this memo, copies will be Strategic Plan Memo December 31, 1996 Page 3 made available for viewingat the meeting.) This mapalso g identifies eight specific areas within the USB which may be zoned appropriately to allow industrial development. These areas are identified in orange on the enclosed zoning map. The proposed transportation corridor connecting County Roads 13, 12, and Highway 10, is integral to creating industrial opportunities in areas 3, 5, 6, and 7. In total,the eight areas identified as potential industrial opportunities equal approximately 440 acres. Obviously, all these areas are not immediately available for development. However, areas 1, 2, and 4 could be made available as soon as rezoning would occur. Those areas which are dependent upon the transportation corridor being constructed may not be available with utilities until the next one to five years. Two major factors affecting construction of the transportation corridor include the timing of the housing development on the Waddy Schultz property, and also the commercial development of the Earl Hohlen property. If these two projects were to begin within the next year, it feasible the transportation corridor could be constructed up to approximately %2 mile south of County Road 12, allowing areas 5 and 6 to be available for development. • What is the recommended phasing approach? Planning and Economic Development staff have discussed a phasing concept which includes the following: - Phase I (0-5 years) - current west business park property including Areas 1, 2, & 4 and industrially zoned areas outside the USB at intersection of Highway 10 and Edison Street - Phase II (3-7 years) - Areas 3, 5, & 6 - Phase III (7-10 years) -Areas 7 & 8 - Phase IV (15-25 years)- industrially zoned gravel mining area • Strategic Plan Memo December 31, 1996 Page 4 • • What is a breakdown of the I1/12 and.BP zoned properties? Current: Zoning Inside USB Outside USB I1 698 acres 150 acres I2 132 acres 484 acres BP 233 acres 0 acres Total 1,064 acres 634 acres Of that which is currently zoned I1 and lies within the USB B approximately 250 acres is owned by Cargill. Future (possible) within the USB, as indicated on the attached zoning map: Area 1 65 acres Area 2 16 acres Area 3 33 acres • Area 4 8 acres Area 5 25 acres Area 6 18 acres Area 7 85 acres Area 8 190 teres Total 440 acres Excluding the mining excavation areas on north 169, the following I1/12, or BP zoned properties are currently vacant or in transition and available for industrial development with some qualifications: • 2 acres Elk River Industrial Park - immediately available • 100 acres Business Park - west - immediately available or within a reasonable time period for a large industrial user • 15 acres Industrial Hardfacing Area - no services available • 20 acres Rail 10 Industrial Park - no services available • 50 acres Business Park - east - no services available Strategic Plan Memo December 31, 1996 Page 5 • 130 acres Southeast wa Hi h10 (Edison Highway Street/Highway 10) - no services planned Of the approximately 317 total vacant/transitional acres, only about 100 are available immediately or at least improvements have been physically planned and are capable of serving the area (Business Park - west) within a reasonable time period. N. CONCLUSION In conclusion, it is important to note that the attached zoning map which identifies possible industrial opportunities is for discussion only at this time. Recommendations from the EDA will go to the Strategic Planning Task Force and be included as part of the overall strategic plan which will, in its final form, be presented to the City Council. Upon acceptance by the City Council, implementation will begin which will, in this case, likely involve a number of zoning changes to accommodate the industrial opportunities as discussed. If Councilmembers on the EDA are not in favor of supporting certain zoning changes as initiated by the EDA and Task Force, then those issues should be brought out at this time for further discussion. V. ATTACHMENTS • Zoning map indicating options for industrial property and urban service boundary s:\eda\documents\memotemp 0 1) 4 5 o 1 (14400) ZEBULON (' I n ,` ,. w ,, —,- (14300) YANKTON 0\ R : ��•.0 • ��It e W , ���� •s " XERXES s / Cr !) 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(13100) ELGIN O \ P4 01,*V� i 6g A 1 5 ' , � DENVER , ,Y � x (13000) CONCORD \� s+wy aarm g m - BOSTON • L mal3av ' Q/(yN (12900) ,� ��� of %•.'",' I 1�^�II'!l► P fit. WM. ,... ... ALBANY f_ ��.`tI'k :' `edLil1�I' F' �4 (12800) zuM8RO E. o . _. ,.. .+��+ �..�•4 ()1,0 �• YORK V 1, :` � �ev1 (12700) XENIA ` , `�'r �, g �3i 4' �`. 11 WATSON I w "�N"f''. dila k � '�. .r. (12600) �o .: T, Q VERNON 0 .�M� ` � wpAR� •TES 411 9 (12500) UPLAND : r�'�a2L 7t. Fr.. nPTON e'•'AN ' i,. O. (12400) �L� , SEYMOUR � ; r 4111 Z _ n c N • (12300) RUSH �`' 1 f,1 `' . �. ZQUINN .` I /1! '•.. (12200) �� _ I�Mtp '�III'111 0 PROCTOR Iaaaf �� ' (12100) .� -- /' /•' .. , . . / , \--------'4-..• il Mom ',, - q 1 , mi .. - Ilk. " . ' - - 431'AVII i Al'"11 ti'lji,:,' A 1 Atii .•,- 7. 01 01 , -- 4'44 ro -!..! — ,' ,t, . r.i.:4 _ i !, 1 ..• , , -' '!, A -N. • ' ' ••• kiwe...-$ , .1,-6,11 , 1 It ...11-... kil/41111111 ' ,. 1 • . ii141,4N1 1 Aillidl%\ ..._, . .. 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'e: � ai :'t1ks,, 1;i y, h ' r f <.a ' ` s? • City of Elk River Artr 34212E,7 Economic Development Strategic Plan • Adopted by City Council action on May 19, 1997 Major Issues and Goals • Industrial Base • Attract new businesses to increase the city's industrial base • Business Retention and Growth • • Retain and grow the city's existing business/industry • East Hwy. 10 Development/Redevelopment • Redevelop the East Hwy. 10 corridor • Downtown Redevelopment • Attract reinvestment in the Elk River Central Business District S Priority # 1 Industrial Base • Attract new businesses to increase the city's industrial base •► Phase I - West Elk River Business Park ✓ Modify zoning north of County Road 30 in the West Business Park from R1C to BP ✓ Update/maintain an inventory of property owners in the West Business Park ✓ Outline the parameters of a "Joint Development Agreement" for • West Business Park property owners which will address assessment issues, land prices, and cooperative marketing of properties to encourage development of those properties ✓ Negotiate land prices in the West Business Park and research funding options for potential city purchase ✓ City Council and EDA to determine whether to proceed with a Joint Development Agreement or city purchase of property - show financial options ✓ Enter into a Joint Development Agreement or complete acquisition of the subject properties ✓ Complete conceptual platting of properties for use as a marketing tool ✓ Modify current marketing and advertising program to include additional properties ✓ Market the properties to industrial users • S Industrial Base - Continued Afrftrn * Phase II - Industrial areas east along the newly proposed transportation corridor and County Roads 12/13, east Highway 10, north Highway 169, and other parcels ✓ Accept a concept proposal for a new transportation corridor between County Roads 12 and 13 proceeding south to connect with Highway 10 ✓ Identify appropriate industrial sites along this new transportation corridor / Identify appropriate industrial sites in other areas lying within the . Urban Service Boundary / Identify appropriate industrial sites lying outside the Urban Service Boundary along east Highway 10 / Undertake rezoning of these industrial sites ✓ Establish a timetable for construction of the proposed transportation corridor and other public improvements in this area ✓ Complete an inventory of property owners within the newly identified industrial areas ✓ Outline the parameters of a "Joint Development Agreement" with these property owners which will address assessment issues, land prices, and cooperative marketing of properties to encourage industrial development ✓ Negotiate land prices and research funding options for potential city purchase ✓ City Council and EDA to determine whether to proceed with a Joint Development Agreement or city purchase of properties ✓ Complete conceptual platting of properties for use as a marketing tool ✓ Modify current marketing and advertising program to include these • newly identified industrial areas ✓ Market the properties to industrial users • Industrial Base - Continued •► Phase III - Other Industrial Areas - Gravel Mining Site ✓ Identify appropriate industrial sites/areas currently being mined ✓ Modify underlying land use if determined appropriate in anticipation of future rezoning to Industrial or Business Park ✓ Work with property owners to establish a timetable for availability of these industrial sites ✓ Work with property owners to encourage consistent and planned availability of these industrial sites over the next 7-15 year period • • • Industrial Base - Continued E ♦ Programs and Incentives ✓ Support the use of Tax Increment Financing (TIF) as a tool to retain and attract industrial businesses ✓ Modify the TIF policy to allow maximum flexibility and to guide the city's appropriate use of this tool ✓ Support Sherburne County's effort to establish a revolving loan fund, and other resources, for economic development ✓ Encourage Elk River Municipal Utilities to establish a dedicated revolving loan fund for economic development and to provide a • competitive incentive electric rate for qualified industrial businesses ✓ Modify the Micro Loan policy to allow maximum flexibility for use as an incentive to encourage industrial business growth ✓ Research opportunities for using the Internet to identify industrial prospects ✓ Update the community profile and demographic information annually ✓ Maintain an inventory of available buildings for manufacturing and other industrial users ✓ Plan and coordinate a marketing event for industrial realtors and brokers, developers, and prospects ✓ Establish a policy to guide the use of the city's development fund in a manner which will support the growth of the city's industrial and business base ✓ Work with local banks to establish a cooperative public/private economic development financing program •