5.0. EDSR 12-09-1996 ITEM 5.
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MEMORANDUM
TO: Economic Development Authority
%CROM: Paul T. Steinman, Director of Economic
Development
DATE: December 5, 1996
SUBJECT: Strategic Planning
I. PURPOSE OF MEMO
The purpose of this memo is twofold:
• Identify possible worksession dates/times for discussion of strategic
planning issues; and,
• • Outline specific objectives of that worksession.
II. OVERVIEW
The Strategic Planning Task Force recently held a meeting to outline
an action plan for each of the following four primary economic
development issues identified:
• Industrial base
• Business retention/growth
• East Highway 10 development/redevelopment
• Downtown redevelopment
After initial discussions by this Task Force of a potential action plan
for the industrial base issue, it appeared the Strategic Planning Task
Force may not be the most appropriate group to undertake this
activity. It was suggested by members of the Task Force that the
action planning for the industrial base issue be completed by the EDA,
given their more comprehensive understanding of this issue.
After the EDA's completion of action planning on the industrial base
issue, the Strategic Planning Task Force will reconvene for its possible
13065 OronoParkway •-P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
Strategic Planning Memo
December 5, 1996
Page 2
• After the EDA's completion of action planning on the industrial base
issue, the Strategic Planning Task Force will reconvene for its possible
final meeting on February 5 to pull all the various parts of the
strategic plan together and coordinate the finished product.
III. PRIMARY ISSUES TO CONSIDER
At this time the EDA has the following primary issues to consider:
0 What are the specific objectives to be accomplished at this
worksession?
Staff will provide background at this worksession regarding the
discussions which have taken place to date by the Strategic
Planning Task Force. Staff will outline for the EDA the reasons
why industrial base has been selected as the number one economic
development priority, in addition to the Task Force's vision of
addressing the issue and achieving the goal of significantly
increasing the city's industrial base. Strategic Planning Facilitator
Jim Brimeyer will also be present at this worksession.
• The industrial base issue breaks down into three distinct categories:
a.) West industrial
b.) East industrial
c.) Other (north)
The first primary objective at this worksession will be to
identify specific action items related to the West industrial
category (Business Park property). As staff proceeds with
implementation of the action steps over the next 3-6 months, the
EDA will be asked to make recommendations to the Council to
possibly provide a funding source in order to accomplish the various
action steps as outlined.
Staff provides the following sample action steps for West industrial:
1. Modify zoning, if necessary, to accommodate industrial
growth.
2. Negotiate a purchase price with landowners in the
Business Park area (which landowners, joint development
agreement with some, purchase agreement withothers??).
3. Estimate the costs of providing improvements to the
Business Park area (phasing, shared costs, etc.).
Strategic Planning Memo
December 5, 1996
Page 3
•
4. Complete a financial analysis including projections for
sale, development, and return on investment.
5. EDA to make recommendations to the City Council for
funding participation.
6. Acquire property, negotiate joint development agreements,
establish marketing plan, etc.
The EDA's second primary objective at the worksession will be
to identify areas east of 169 that are within the urban service
boundary, which could be zoned to accommodate industrial
growth. This objective will require a bit more analysis, and
planning/engineering staff will be available at the worksession to help
address this issue. The Strategic Planning Task Force is anticipating
that the EDA will produce a map of the area East of 169 which would
be taken through the process of rezoning, if necessary, to accommodate
industrial growth. It should be noted that the Task Force's vision is
that we should have a minimum 300 acres of industrial (Business Park
included) zoned land within the urban service boundary, some of which
is available immediately for development (west area - Business Park)
and other land which will be available in the near future (east area)
and more available in the distant future (north gravel pits).
The EDA's third primary objective at the worksession is to
outline an action plan for "other" areas of the city, likely the
gravel pits on 169, for future industrial growth opportunities.
This step should be fairly simple due to the length of time prior to
those areas being viable for development. Steps which could be taken
at this time include land use/zoning modifications.
Action steps related to non-urban industrial sites will be discussed at a
later date under the East Highway 10 development/redevelopment
issue.
IV. CONCLUSION
The discussion by the Task Force which ensued regarding the
industrial base issue was that if the industrial base of Elk River is to
grow significantly, it would be necessary for the city to aggressively
implement action steps to accomplish this activity. This aggressive
approach included discussions of possible city investment for the
purchase, improvement, and marketing of industrial property. There
certainly are less aggressive alternatives to this issue which the EDA
can discuss. These alternatives may include entering into joint
Strategic Planning Memo
December 5, 1996
Page 4
•
marketing/development agreements with property owners rather than
purchasing property. It is the feeling of the Task Force that the EDA
has the best knowledge base and expertise to determine which is the
appropriate alternative.
At a future date, the EDA may also be charged with the responsibility
of completing action planning for the major issues of Business
Retention/growth and East Highway 10 development/redevelopment.
It is also likely and appropriate that the HRA will undertake action
planning for the downtown Redevelopment issue.
s:\eda\meetings\stping.doc
• ECONOMIC DEVELOPMENT MISSION STATEMENT
ELK RIVER
"A historic river community serving as a regional center with a favorable location
near the Twin Cities metropolitan area"
Our mission is to actively participate in economic development by utilizing
available resources to leverage viable and healthy investments in our community.
Such investments will create livable wage job opportunities as a result of a stable
and growing business and industrial base. We will persist in providing quality
services, maintaining a favorable tax rate, supplying full-cycle housing options for
our residents, and aggressively fostering an environment that results in substantial
growth of our local economy.
•
•