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2.0 EDSR 07-18-2016 Request for Action To Item Number Economic Development Authority 2.0 Agenda Section Meeting Date Prepared by N/AJuly 18, 2016Amanda Othoudt, EDD Item Description Reviewed by 2017 EDA Budget & Budget Goals Cal Portner, City Administrator Reviewed by Action Requested Information presented for discussion only. Action is to be taken at the August 15, 2016, EDA meeting. Background/Discussion As part of the budget process, a budget workshop is advisable to allow for informal discussions regarding the goals and objectives, major projects, and other items influencing the EDA budget. Staff prepared a draft budget to address several of the goals outlined in the strategic plan, downtown plan, the city’s vision worksheet, and through recent EDA discussion. In order to meet the requirements of the EDA Bylaws, the EDA must approve the budget at their August 15, 2016, regular meeting and make recommendation to the City Council at the September 5, 2016, regular meeting. As drafted, the proposed expenditures are $294,500. Major initiatives include participation in the Positively Minnesota Marketing Partnership program events, increased exposure through advertising and publication and the addition of wetland bank credits which will be a shared initiative between the EDA and the Environmental divisions. The EDA levy options are as follows: 1)0.0138% - Balanced rate generates $285,500 in revenue and wouldn’t add or draw against reserves. 2)0.01813% Previous/Maximum rate generates $374,947 in revenue and would add additional revenue into reserves. All levy options are applied against the Estimate Market Value obtained from Sherburne County of $2,068,104,300. In addition to the tax levy, we also calculate interest income of $5,500 and $3,500 transfer from the HRA for supplies and shared costs. Financial Impact None Attachments  EDA 2017 Budget Goals  2017-2020 EDA/HRA Strategic Plan  EDA Budget Worksheet Division Performance Measures & Goals for 2017 Division:Economic Development Completed by:Amanda Othoudt, EDD Date:June 1, 2016 Performance Measure 2015 Actual2016 Estimated2017 Projected Conduct BR&E Visits132424 Obtain positive publicity via at least 3 outside agencies each year344 Personally connect with developers to tour available properties to entise development of available properties456 Promote new applications for the Revolving Loan Fund Programs and track the the percentage of applications processed to the total numbers of leads received. 6 Applications Processed6 Applications Projected6 Applications Projected Related Vision Statement Division Goal Goal/Objective Comments Contact and Network directly with Real-City Vision Statement: Opportunities & EDA Strategic Recruiting: Attend targeted industry (Data Centers, Estate developers, and target industry Strategic Plan: Business DevelopmentManufacturing, Energy, Medical Device Technology) trade shows, leverage Grow and maintain an inventory of Establish a wetland bank to facilitate new private and public properties available development where wetlands impede for future developmentgrowth; shared responsibility with EDA/Planning/Environmental Maintain financial incentives to enhance Maximize and Leverage DEED moneis, economic developmentInitiative Foundation, Sherburne County Revolving Loan Fund and other financial tools and incentives. Celebrate and grow our existing Conduct Business, Retention and Conduct BR&E Visits and gauge the interest of starting a manufacturing businessesExpansion visits to local businessescohort group on a quarterly basis. Market the city of Elk River as a Contact & Network with Key Stakeholders in Strategic Recruiting: Attend targeted industry (Data Centers, destinationthe Targeted Industries including Real Manufacturing, Energy, Medical Device Technology) trade shows, leverage Estate Brokers/Agents. opportunities with local companies as often as possible by participating in 2016-2020 EDA/HRA Strategic Plan BUSINESS DEVELOPMENT Attract new businesses and support existing businesses to increase the city’s industrial tax base, commercial tax base and employment base. INDUSTRIAL STRATEGIES Promote available sites, encourage business retention and expansion to grow existing  light industrial base with business recruitment/attraction techniques Diversify economic base to include professional services, corporate campuses, energy-  related companies, and technology businesses Review existing programs, resources, and services and recommend improvements to  increase competitive advantage and support goals Explore creative economic development collaborations  Utilize Energy City and its tools to recruit new and assist existing businesses  COMMERCIAL STRATEGIES Promote available sites, encourage business retention and expansion to grow existing  commercial base with business recruitment/attraction techniques Diversify economic base to include a wide variety of retail and service industries, as well  as additional fine dining opportunities Review existing programs, resources, and services and recommend improvements to  increase competitive advantage and support goals Explore creative economic development collaborations  Enhance commercial district through business recruitment and activities  ACTION STEPS  Complete minimum of one BRE visit a month with participation from EDA/HRA and Council members (manufacturers and top employers) and distribute Business Finance Toolkit, Available Sites, Community Profile, Energy City Brochure, Business Recycling Toolkit and other pertinent information.  Promote available sites through exhibits at various expos (minimum 2x/yr.) st  Utilize 171 FAST implementation plan to create a marketing piece for Nature’s Edge Business Center and an annual redevelopment action plan to monitor progress of implementation  Partner with ERMU to identify applicable rebates for available city-owned property 1  Promote applicable incentives through direct mailings (minimum 3x/yr.)  Promote Elk River to the restaurant industry through website (www.elkrivermn.gov/restaurants), direct mailings, Constant Contact email blasts and other marketing venues  Partner with Elk River Area Chamber of Commerce to coordinate Chamber goals with economic development goals through various implementation tasks  Utilizing economic development publications make contact with businesses looking to expand, relocate, etc.  Review Micro Loan Program and recommend improvements to increase competitive advantage and support goals  Partner with ECC and ERMU to explore a joint incentive to attract energy-related technology businesses  Partner with local schools and manufacturers to hold quarterly meetings to encourage students to explore a career in manufacturing through plant tours, youth apprenticeship programs, energy city tours and programs, and job shadowing  Update a powerful website for the Elk River Economic Development Department and the Housing and Redevelopment Authority. Provide analytic reports on a quarterly basis.  Demonstrate support for existing manufacturers and raise awareness regarding their impact on the community through various promotional activities and tours during Minnesota Manufacturers Week  Identify target industries (e.g. craft brewery, manufacturing and medical device, etc.) and create specific marketing pieces to identify advantages and programs to assist in business recruitment  Host quarterly Manufacturers’ Connection events with local manufacturers to promote financial incentives, resources and relevant topics to promote business retention and appreciation  Produce an energy conservation best-practices brochure to provide to businesses  Coordinate with Energy City to plan and market energy city events e.g. Energy City Business of the Year  Partner with Energy City and the Streets Department and continue to promote proper disposal of Fats, Oils and Grease through videos, flyers, emails, social media, and other media  Host and Promote a quarterly business rountable event with local business leaders and community stakeholders.  Partner with the Elk River Area Chamber of Commerce to hold annual event to promote economic development resources and incentives (Juice Up Your Morning, Chamber luncheon, Money Breakfast, etc.)  Continued contact and relationship development with Twin City commercial real estate brokers/developers 2 REHABILITATION AND REDEVELOPMENT Undertake strategies that facilitate rehabilitation and redevelopment of aging commercial, industrial and residential areas to ensure private reinvestment and sustainability. COMMERICAL/INDUSTRIAL STRATEGIES Maintain a listing of available commercial /industrial sites  Promote available sites through various marketing initiatives  Identify and examine potential areas for revitalization  Review existing programs, resources, and services and recommend improvements to  increase our competitive advantage and support goals Enhance downtown commercial district through business recruitment and people-  generating activities Develop and implement a blighted properties program for both commercial and  residential properties ACTION STEPS  Identify target areas for the blighted properties program  Partner with downtown business association and civic groups to promote existing and explore new downtown activities (i.e. BNI, Chamber Connections, etc.).  Partner with Elk River Area Arts Alliance to explore funding concepts for an arts center within the downtown study area  Create and distribute a survey to businesses to identify recommended improvements to existing programs, resources and services, in addition to identifying preferred methods of communication to improve Elk River business climate  Identify current property owners’ and businesses’ interest in redevelopment efforts both north st and south of HWY 10 and in 171 Focused Area Study area  Create a redevelopment policy regarding capitalizing the HRA development fund and identify parameters for purchasing parcels  Create and distribute comprehensive business directory to promote downtown Elk River  Update short videos promoting available sites and applicable initiatives to distribute through social media outlets, constant contact and website 3 RESIDENTIAL STRATEGIES Maintain listing of vacant/foreclosed properties  Address housing gaps with Comprehensive Housing Market Study recommendations  Proactively review neighborhoods annually to ensure all home are properly maintained  through the code enforcement process Seek and promote available programs to improve existing housing stock and incentivize  homeownership through CMHP Provide educational opportunities regarding foreclosure prevention and housing  assistance programs by developing brochures/pamphlets ACTION STEPS  Distribute MN Home Ownership Center foreclosure prevention, Energy City conservation brochure, and Elk River Housing Toolkit information to local lenders, realtors, churches, non- profits, builders, etc. (minimum 4x/yr.)  Partner with applicable non-profits (MNHOC, Tri-CAP, etc.) to hold educational events to promote foreclosure prevention and housing programs (minimum 2x/yr.)  Continue to partner with the CMHP housing organization to fund and support a selective housing removal and rebuilding program  Host an annual Realtors’ Day to educate realtors about the programs, processes and amenities offered by the city 4 COMMUNITY BRAND Utilize community brand strategies to effect necessary changes to strengthen and enhance community image STRATEGIES Continue to implement and enhance marketing plan that reflects the Powered by  Nature brand, identifies desired target market(s), and complements other local efforts to promote the community internally and externally Maintain existing and build new community support for the Powered by Nature brand  Establish benchmarks for performance measurement  ACTION STEPS  Distribute window clings and larger windows signs of the logo  Promote the brand, engage residents, and distribute materials at expos (3x per year) and at events such as Realtors’ Day, Leadership Elk River, and Manufacturers Connection  Create profiles on first-tier business owners in Salesforce – a tracking software used to record information on local businesses and visits   Benchmark the impact of the Powered by Nature brand with data from Google Analytics and a search engine optimization analysis.  Promote Public Art Installation and research opportunities to expand public art within the city. 5 TRANSPORTATION Advocate and support proactive planning for improvements to the local and area transportation system in a way that will support existing businesses and complement new economic growth. STRATEGIES Advocate regional and local transportation improvements  Encourage transportation improvements as part of redevelopment/development  opportunities Support efforts to leverage local funds with state/federal resources  ACTION STEPS (submitted by City Engineer)  Increase contact with legislators for state highway transportation improvements  Complete low cost/high benefit enhancements to improve traffic flow through the existing street intersections  Advocate for the continued use and expansion of Northstar commuter rail service. st  Continue implementation of transportation improvements as detailed in the 171 Focused Area Study  Assure all proposed development improvements are consistent with our local and regional transportation plans.  Leverage State and Federal investment for mobility improvements to TH 169 and TH 10 with the already spent local dollars for the planning of improvements to these sections.  Evaluate all available grant opportunities to determine if the local matching amounts are a cost effective and feasible solution to support our objectives and strategies.  Promote the Quiet Zone, Northstar Commuter Train and Bike paths. 6 2017 - 2018 BUDGET DETAIL SHEET Dept:Economic Development Authority Acct.2016 BUDGET2017 BUDGET2018 BUDGET 20142015 Explanation/Detail of Supplies or Services No.DetailTotalDetailTotalDetailTotal ActualActual PERSONAL SERVICES 4101Regular Pay58,53469,31984,15089,750 4103Part-time Pay17,41313,57912,60012,600 4104PERA4,1295,4066,6007,250 4105FICA4,7974,6346,0006,350 4107Medicare1,1221,1361,4001,500 4108Insurance7,4638,62010,85011,600 4109Workers Comp287278400450 4110Re-employment Comp377 TOTAL PERSONAL SERVICES94,122102,972122,000129,500 SUPPLIES Office Supplies4,7563,690 42017,1004,6004,600 Office supplies 2,7002,7002,700 Computer - Amanda1,500 Computer Software/Licensing (MNCAR, Sketchup, etc.)2,9001,9001,900 Fuels & Lubes11184 42122,1002,1002,100 Unleaded gas2,1002,1002,100 TOTAL SUPPLIES4,7673,8749,2006,7006,700 OTHER SERVICES & CHARGES Legal Fees9,187388 430415,00011,00011,000 Misc.15,00011,00011,000 Other Professional Services28,99917,000 43195,000 Update Powered by Nature brochures500 Powered by Nature sponsorships2,500 Powered by Nature promotional items2,000 Telephone357911 43217001,3501,350 iPad data plan Colleen - $30/month700375375 Cell Phone reimb. (Colleen $30/month375375 Cell Phone w/hotspot reimb. (Amanda $50/month)600600 Postage326250 43222,0001,1001,100 Marketing mailings2,0001,1001,100 Conferences/Schools8,42414,729 433121,70011,15011,150 EDAM3,5003,5003,500 Annual IEDC Conference2,500 NDC/IEDC Training & Travel4,500 Hamline Econ Dev. Certificate2,200 LMC850 Chamber Events900500500 MREJ600600600 MNCAR150150150 CMMA500500500 MN Banker's Assoc.750 Leadership Elk River400 SLUC300300300 Springsted300400400 Ehlers200200200 Site Selector Conference1,7002,5002,500 Site Selector Conference Travel1,3501,5001,500 Misc. training1,0001,0001,000 Advertising/Marketing62,25578,109 434972,85080,60080,600 Community Profiles8001,5001,500 7/15/2016 Dept:Economic Development Authority Acct.2016 BUDGET2017 BUDGET2018 BUDGET 20142015 Explanation/Detail of Supplies or Services No.DetailTotalDetailTotalDetailTotal ActualActual Advertising (Production & Publication)18,30020,00020,000 Direct Mailings 3,0001,5001,500 Business Retention & Expansion Visits800800800 Promo items9,00010,00010,000 Special events5,0005,0005,000 Sponsorships - City/EDA8,00010,00010,000 EDA owned property 1,500 Zoom Prospector Application for Website2,5001,9001,900 Trade Shows & Lead Generation/Travel15,00019,95019,950 DEED Shovel Ready Certification3,250 EDA/HRA Shared Website5,7005,7005,700 Promotion & Awards250250 Powered by Nature3,0003,000 Holiday Card Marketing1,0001,000 Publishing357149 4359500350350 Public notices, etc500350350 Insurance45 4361200200200 Insurance200200200 Dues/Subscriptions1,6062,575 44333,7004,7504,750 EDAM 450450450 Chamber450480480 Constant Contact300300300 CMMA250250250 MNCAR400300300 IEDC 800820820 Misc.300300300 Finance and Commerce500300300 Rotary250250250 MN Marketing Partnership700700 MAEDC300300 MPLS/ST Paul Business Journal300300 Miscellaneous216,81411,882 44403,00013,00013,000 Initiative Foundation3,0003,0003,000 Wetland Credit Bank10,00010,000 TOTAL OTHER SERVICES & CHARGES328,325126,038124,650123,500123,500 TRANSFERS OUT 34,80034,80034,800 Transfers 568,000 4720 General Fund31,90032,000 472134,80034,80034,800 TOTAL ECONOMIC DEVELOPMENT AUTHORITY1,027,114264,884290,650294,500165,000 7/15/2016