6.3 EDSR 05-16-2016 tt of lk Request for Action
River
To Item Number
Economic Development Authority 6.3
Agenda Section Meeting Date Prepared by
General Business May 16,2016 Colleen Eddy, Economic Development Specialist
Item Description Reviewed by
IEDC Award Submission Amanda Othoudt,EDD
Reviewed by
Cal Portner, City Administrator
Action Requested
Item presented for information.
Background/Discussion
Each year,the International Economic Development Council (IEDC) solicits entries for their Excellence
in Economic Development Awards.This year, the City of Elk River is submitting an application under
the Public-Private Partnership category and which highlights the latest expansion of Sportech Inc.
The IEDC is a non-profit, non-partisan membership organization serving economic developers. With
more than 4,500 members, IEDC is the largest organization of its kind.
The Public-Private Partnership award recognizes outstanding and innovative development projects that
have significantly enhanced the economic revitalizations of distressed communities, states, or regions.
The extent of which public and private sector participants have formed a true partnership or joint venture
in planning, developing and financing the project.
The Sportech Inc. project incorporated public financing at the local, county, state as well as workforce
training grants as part of their expansion project. It was also a driving force behind additional
development projects in the area.
The IEDC will announce the award winners at the 2016 IEDC Annual Conference in Cleveland, Ohio on
September 25-28, 2016.
Financial Impact
The entry fee is $110 which could be funded from the Advertising/Marketing budget.
Attachments
• Award Entry Form
t® NEREI Ill
NATURE
L.� J 2016 IEDC EXCELLENCE IN ECONOMIC DEVELOPMENT AWARDS
PAYMENT FORM
�cuNOn„c n�v,tnrn„�r
X.:OUNt H ,/�
NAME: L //zr-
TITLE:/0/10/17/c.- L'L?4Ol•v�
//Af r
ORGANIZATION: C i
ADDRESS 1: J 30r s-
Orb ri D P a TELEPHONE: /7‘.3, 4,35: 105/
ADDRESS 2: / FAX:
CITY/STATE/ZIP: E l P„,J Mc) MA/5 30 EMAIL: /60./ 14„ triyJ, qDl/
I.General Purpose Print
Brochure 13.Multi-Year ED
2.Special Purpose Print Brochure 14.Business Retention&Expansion-Single Event
3.General Purpose Print 15.Business Retention&Expansion-Program of 3 Years
Promotion or More
4.Video/Multimedia Promotion _ 16.Entrepreneurship
5.Annual Report 17.Neighborhood Development
6.Paid Ad Campaign 18.Human Capital Program
7.Newsletter/Newspaper 19.Sustainable&Green Development
8.Magazine 20.Real Estate Redevelopment&Reuse
9.Special Event 21.Public-Private Partnerships
10.General Purpose Website 22.Partnerships with Educational Institutions
11.Special Purpose Website 23.Regionalism&Cross-Border Collaboration
12.New Media
,41iiimunity_population Size* Total:
<25K 25-200K ❑200-500K ❑>500K
*If projects from different population groups are submitted,please check all and explain on the back of this form.
Entrants Dates Entry Fees Total Entries Submitted: ,lea.
Early IEDC Members Feb 12-April 8 ❑ $110.00 / @$ Jf
Early Non Members Feb 12-April 8 $190.00 of)
Regular Members April 9-May 13 $165.00 Total Fees Enclosed: $ P/4.
Regular Non Members April 9-May 13 ❑ $210.00
Entrants in Population Feb 12-May 13 g $110.00
Size <25,000
PAYMENT METHOD
Payment must be received with applications.Nominations will not be considered until payment is rendered.Fee is in U.S.
dollars.Please note that Entry Fees are non-refundable.
O Check/Money Order# payable to IEDC is enclosed.
Charge Credit Card:
❑VISA ❑ MASTERCARD ❑ AMEX
Credit Card Number:
Name on Ci ` I//. , fe Exp.Date: �.
/ K i Date:
*INCLUDE ONE COPY OF THIS PAGE WITH YOUR APPLICATION(S).
5
`i i� 2016 IEDC EXCELLENCE IN ECONOMIC DEVELOPMENT AWARDS
,-,!-Al-- ENTRY FORM
I I ONI)MI(Or VIIOPMI NI
COONC.II
PLEASE COMPLETE THIS FORM FOR EACH ENTRY.Include 5 hard copies and supplemental information with your
submission.
ORGANIZATION: -1 Q 7' f.! 1r
CONTACT NAME: ex I EMAIL: ead G (/ /kllm',7ov
PROJECT/PROGRAM NAME: ) , r / C, f [ c�
ENTRY CATEGORY: �� (jl j� '� � 1, (ldt
POPULATION CATEGORY: <25K ❑ 25K-200K ❑ 200K-500K ❑ >500K
DATE PROJECT BEGAN: O I DATE OF COMPLETION(if applicable): #0/01$
PROJECT BUDGET:
Enter website URL for categories 10& 11:
ENTRY CATEGORY:
❑Promotional Award Categories 1-9—See Sheet A(page 10)
❑Internet and New Media Categories 10-12—See Sheet B(page 11)
Program Award Categories 13-20—See Sheet C(page 12-13)
0„
Partnership Award Categories 21-23—See Sheet D(page 14)
PROJECT DESCRIPTION:
This section is intended to provide an overview of the project.Please keep answers to each question under 1,200
characters(including spaces).Note:You may expand on this information in a separate profile of no more than 3
pages,double-spaced.
1. Please provide a brief description of the project. If it is part of a larger project or campaign,please briefly
give an overview of the larger campaign as well.
*INCLUDE PAGES 6-9 WITH YOUR APPLICATION(5 COPIES).
6
City of Elk River Project
1. Please provide a brief description of the project.If it is part of a larger project or
campaign,please briefly give an overview of the larger campaign as well.
Sportech,Inc.is a locally-owned company originating in a family garage in 1994 that has grown into
one of the city's largest employers.They are an innovation-driven plastics thermoformer specializing
in the design,development,and production of products for the recreational and utility product
industry.
The company has experienced rapid growth over the past 18 years moving from the garage to a
10,000sf facility in 1998,adding a brand new 87,000sf facility in 2008,and added an additional
55,000sf facility in 2012. In 2014,Sportech added a state-of-the-art innovation center to their largest
facility intended to enhance creativity and promote collaboration within their new product
development group.Sportech was in need of a new 105,000sf facility to support growth and an
additional 72 full time employees by the end of 2017.Sportech purchased a 14-acre site in the city-
owned Natures Edge Business Park in 2015.
The project utilized several sources of public financing for the purchase and development including
the Minnesota Department of Employment and Economic Development,Sherburne County,the
City of Elk River,and Anoka-Ramsey Community College.
2. What is the goal or purpose of this project?
Sportech is an Original Equipment Manufacturer for snowmobile,utility vehicle,and recreational
vehicle manufacturers. The market for products is very competitive and incredibly fast and their
products and innovation are in high demand.
As an Elk River native,Mr.Carlson was loyal to the city however his company's growth made
Sportech a very attractive target for neighboring communities with similar goals to add tax base,
high-paying,local jobs,and a company recognized as a good corporate citizen.
Keeping Sportech in Elk River was an important goal as it was not only a prize local company,their
growth and their market future,as demonstrated by their rapid growth and corporate innovation,are
expected to continue to add jobs and to the community tax base.
3. What is the impact of the project?How effective has it been in furthering economic
development in your community?Identify any tangible and/or intangible results and
value added.
The city utilized Property Tax Abatement to assist with the construction of the new facility.The
$1,288,589 tax abatement was supported by the city and county which attracted$8,407,740 in private
investment and added over$216,000 of taxable value.
The Sportech project is also a driver for additional development projects in the area.The new facility
is located near a new transit-oriented housing development and adjacent to the Northstar Commuter
Train facility. Supply chain efficiencies are also anticipated resulting in the relocation of suppliers to
Elk River to meet Sportech's raw material demands. Further,Carlson Motorsports is in the process
of expanding ERX,their snowmobile,truck,and off-road vehicle course to include race team facility
rentals and national events.
6
City of Elk River Project
Sportech seeks to hire local high school graduates,partnering with educational institutions to match
students with employment opportunities.They created an internship program in 2013 hiring their
first mechanical engineering intern that year. Sportech targets 3-5 universities each year,and attends
various engineering and career expos to attract top talent.
4. Is this project replicable or transferable?Can it be adapted for use in other communities?
What lessons have been learned?
Sportech incorporated public financing at the local,county,state,and workforce training grants as
part of their project.Other communities offer various funding resources and incentives. Depending
on each state and unit of government,there could potentially be a combination of funding compiled
into the implementation of a similar or a more customized type of project.
The single greatest lesson concerning the project was developing clear lines of communication and
the strong relationships between the city,county,and the Sportech team.The importance of
Business Retention and Expansion visits are extremely critical to future expansion planning,and in
determining long term visions and goals of local businesses.
The Sportech project aided in building essential partnerships with various entities,who all worked
together in order to keep an innovative business in Elk River. Sportech has been a long standing,
community-oriented business.This project specifically emphasizes the value of building strong and
sustainable communities through innovative strategies,tools and techniques to assist in the retention
of a local and committed company.
5. Who are the participants in this project?What roles did they take in
planning/implementation?Who is affected?
• The City of Elk River and Sherburne County supported the project through public financing
in the form of property tax abatement.
• Minnesota Department of Employment and Economic Development(DEED) awarded a
Minnesota Job Skills Partnership grant totaling$300,000 to implement job training
programs.
• Minnesota Department of Employment and Economic Development(DEED) awarded
Sportech with a$175,000 grant through the Anoka-Ramsey Community College to provide
specialized training in company cultural development,train-the-trainer,cross training,
coaching and mentoring,EPICOR,Thermo Plastics&Resins and continuous improvement
• Decklan Group,Sportech's Consultant,coordinated all aspects of the application process
and materials.
• Elk River Area Chamber of Commerce coordinated photo and community opportunities,
ground breaking activities,ribbon cutting ceremonies and an open house event.
6. In what ways is this project innovative or creative?
Mr. Carlson also owns and operates ERX Motor Park,an all-season motorsports facility located in
Elk River featuring winter season full-service grassroots and regional snocross racing events and
training on its massive,professionally-constructed and maintained snocross track,which is nationally
7
City of Elk River Project
recognized. Summer season now includes local and national off-road vehicle events. Sportech's
customers are able to test prototypes at ERX before the parts are in production.
Anoka Ramsey Community College in conjunction with Sportech,created customized courses to
improve workforce development including Company Culture Development and Integration,Cross-
Training,Coaching&Mentoring,EPICOR Systems,Thermoforming,Thermo Plastics&Resins,
Continuous Improvement,Train-the-Trainer,and Preparing Emerging Leaders. Sportech provides
training space with access to production areas,tools,and equipment.Training ensures long-term
viability to respond to industry changes and challenges.Newly developed training modules at Anoka
Ramsey Community College will be beneficial to other companies in the region.
7. Are there any other relevant details not covered above or specific to your category?
Mr. Carlson gives back locally through annual participation in Minnesota Manufacturer's Week,
providing tours to the public,speaking at schools,local chamber events about the importance of
manufacturing and workforce in our state.Mr. Carlson's emphasis his company culture by hiring
people with upstanding morals and values. Sportech recently partnered with Feed My Starving
Children to put on a MobilePack event earlier this year where 100,000 meals were packed in over an
eight-hour period by Elk River community members,area small businesses,churches and students.
Profile must include:project name;location;the developer;the firm;complete information of
the prime contact,the chief executive officer and chief elected official of the city.
Sportech,Inc.Project
10752 168th Circle NW
Elk River,MN 55330
CEO—Chris Carlson
Sportech,Inc.
763.712.3965
ccarlson @sportechinc.com
City of Elk River
Mayor of the city of Elk River—John Dietz
John.Dietz@ElkRiverMN.gov
R.J.Ryan Construction Inc.
1100 Mendota Heights Road
Mendota Heights,MN 55120
651.681.0200
8
City o E River
Sportech Inc. Project
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Mr. Carlson, CEO and Owner of Sportech, along with local dignitaries from
the State of Minnesota, and Anoka Ramsey Technical College celebrating the
success of Sportech Inc. receiving $300,000 in MJSP Grant money to help
improve our local and Minnesota workforce.
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The new Sportech Inc. facility is taking shape — early 2015.
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Exciting new products are being thermos-formed inside the new facility.
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` ?4 ' `''.` ' • ' The new Sportech Inc. facility
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�� It V ,'1 ``:1. ' « !' opened to the public on April
` 29th during a ribbon cutting
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