6.1 EDSR 08-15-2016 City of
ilk � Request for Action
River
To Item Number
Economic Development Authority 6.1
Agenda Section Meeting Date Prepared by
General Business August 15,2016 Amanda Othoudt,EDD
Item Description Reviewed by
2017 EDA Budget and Resolution Establishing Cal Portner, City Administrator
EDA Levy Reviewed by
Action Requested
1. Review and approve the 2017 EDA Budget as presented.
2. Approve,by motion, the attached resolution establishing the EDA Tax Levy for collection in
year 2017.
Following the EDA's action, the City Council must approve and certify the EDA levy to Sherburne
County by September 5,2016.
Background/Discussion
The Economic Development Division consists of two separate budgets:
• Economic Development Authority
• Housing&Redevelopment Authority
At the July ig,2016,Special Budget Workshop,the EDA reviewed the performance measures/goals and
budget for 2017.
Revenues
The budget proposes maintaining the general operating levy at 0.01813% of estimated market value,
which is the state cap.
Revenues estimated from the EDA tax levy are based on an estimated market value of$2,068,104,300 per
the Sherburne County Assessor,generating$374,947. 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.
Expenditures
The proposed 2016 budget was developed with the goals and action steps outlined in the 2017-2020
EDA Strategic Plan, the Mississippi Connections Downtown Plan, city vision and goals,and the
Branding Implementarion Plan.
Major initiatives from these documents include:
• Contact and Network directly with real estate developers,and target industry decision makers.
• Grow and maintain an inventory of private and public properties available for future
development.
• Establish a wetland bank to facilitate new development where wetlands impede growth.
[ OVIEREI riATURE
• Maximize and leverage state,regional and local financial incentives to enhance economic
development.
• Continue to participate in the Department of Employment and Economic Development's
Positively Minnesota Marketing program.
• Celebrate and grow our existing businesses by conducting 24 BR&E visits in 2017.
• Market the city of Elk River as a destination.
Major Changes
Direction from the budget workshop included the following changes:
Office Supplies
Office Supplies were decreased by$2,500 in 2017 due to the purchase of a new office computer and
computer software in 2016.
Legal Fees
Legal fees were decreased by$4,000 for this budget cycle.
Other Professional Services
The Powered by Nature branding plan has been successfully established and$3,000 has been
incorporated into advertising and marketing in 2017. A separate line item for Powered by Nature
brochures and promotional items is no longer needed,resulting in a deduction of$2,000.
Telephone
Cell phone reimbursements were added for 2017. Overall, this is an increase in the overall line item by
$650.
Conferences and Schools
Adjustments were made resulting in a decrease of$10,550 over last year, eliminating National
Development Council (NDC) training and travel, Hamline Economic Development Certificate and
League of MN Cities trainings for 2017. Staff realized cost savings related to travel in 2016 by attending
trainings held in Minneapolis.Attendance at the International Economic Development Council (IEDC)
conference will be budgeted for every other year.Additions were made to this line item to include
increased conference registration and travel to the annual Site Selector Guild Conference.
Advertising and Marketing
Additions to Advertising and Marketing in 2017 include advertising production and publication for global
and national publications,resulting in an increase of$1,700 over the previous year. A decrease of$1,500
was accounted for in 2017 for direct mailings,which is a direct result of efficiencies made internally by
sending email blasts to the local business community. An increase of$1,000 for the purchase of
promotional items, an increase of$2,000 for new sponsorships, a reduction of$600 for the Zoom
Prospector application on the website, and an increase of$4,950 for attending Trade Shows related to
marketing the four targeted industries. Additional line items include Promotion and Awards,Powered by
Nature and Holiday Card marketing,resulting in an additional$4,250 budgeted for 2017. The net increase
in Advertising and Marketing efforts over the previous year is $7,750 or 10.6 percent.
Publishing
A slight adjustment was made to publishing to decrease this line item by$150 over the previous year for
notice publication for public hearings.
Dues and Subscriptions
An increase of$1,050 was made to this line item to include an additional membership within our
department for the Positively MN Marketing Partnership,memberships to MPLSI St. Paul Business Journal,
and MAEDC.
Any unspent funds remaining at the end of the year stay in the EDA fund for future economic
development purposes/projects. If a non-budget item comes up in 2017,we can use the fund balance and
make a budget amendment.
Financial Impact
The 2016 expenditure budget is $294,500.
Attachments
• Resolution
• Proposed 2017 Budget Detail Spreadsheet
• July 18,2016, EDA Budget Workshop Packet
jil'4 ...,
City of
Elk ...........
River
........„
Resolution 16-03
A Resolution of the City of Elk River Economic Development Authority,
Establishing the Tax Levy for the Elk River Economic Development
Authority for the City of Elk River, Minnesota
WHEREAS, Minnesota Statutes X469.107, subd. 1, authorizes the Economic
Development Authority to levy an amount not to exceed .01813 percent of the estimated
market value within the city to be used for economic development purposes;and,
WHEREAS, the Elk River Economic Development Authority will adopt and approve its
budget and will forward such to the City of Elk River pursuant to Minnesota Statutes
X469.100, subd. 2.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Elk River,Minnesota, that it hereby requests the City Council of the
City of Elk River to levy a tax in the amount of.01813 percent of the taxable market value in
the city for the year 2017 for the benefit of the Authority to be used for Economic
Development Authority purposes as provided by the statute.
Passed and adopted this 15`''day of August,2016.
Dan Tveite, EDA President
ATTEST:
Amanda Othoudt, EDA Executive Director
IIThREI e r
1NATUIRE
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
433121,70011,15013,950
EDAM3,5003,5003,500
Annual IEDC Conference2,5002,800
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
8/12/2016
Dept:Economic Development Authority
Acct.2016 BUDGET2017 BUDGET2018 BUDGET
20142015
Explanation/Detail of Supplies or Services
No.DetailTotalDetailTotalDetailTotal
ActualActual
Community Profiles8001,5001,500
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 & CHARGES328,325126,038124,650123,500126,300
TRANSFERS OUT
34,80034,80034,800
Transfers 568,000
4720
General Fund31,90032,000
472134,80034,80034,800
TOTAL ECONOMIC DEVELOPMENT AUTHORITY1,027,114264,884290,650294,500167,800
8/12/2016
Division Performance Measures &Goals for 2017
Division: Economic Development
Completed by: Amanda Othoudt, EDD
Date: June 1,2016
Performance Measure 2015 Actual 2016 Estimated 2017 Projected
Conduct BR&E Visits 13 24 24
Obtain positive publicity via at least 3
outside agencies each year 3 4 4
Personally connect with developers to
tour available properties to entise
development of available properties 4 5 6
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 Processed 6 Applications Projected 6 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,Manufacturing,
Estate developers,and target industry Strategic Plan:Business Development Energy,Medical Device Technology)trade shows,leverage opportunities
decision makers with local companies as often as possible by participating in the trade
shows that they attend.Identify key decision makers,provide FAM tours of
city,coordinate development meetings with City/County/State.Partner with
Positively MN,Sherburne County and ERMU.Promote Available properties
on MNCAR and MN Prospector.Attend Annual Site Selector Guild
Conference.
Grow and maintain an inventory of Establish a wetland bank to facilitate new
private and public properties available development where wetlands impede
for future development growth;shared responsibility with
EDA/Planninq/Environmental
Maintain financial incentives to enhance Maximize and Leverage DEED moneis,
economic development Initiative Foundation,Sherburne County
Revolving Loan Fund and other financial
tools and incentives.
Celebrate and grow our existing Conduct Business,Retention and Expansion Conduct BR&E Visits and gauge the interest of starting a manufacturing
businesses visits to local businesses cohort 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,Manufacturing,
destination the Targeted Industries including Real Estate Energy,Medical Device Technology)trade shows,leverage opportunities
Brokers/Agents. with local companies as often as possible by participating in the trade
shows that they attend.Identify key decision makers,provide FAM tours of
city,coordinate development meetings with City/County/State.Partner with
Positively MN,Sherburne County and ERMU.Promote Available properties
on MNCAR and MN Prospector.Attend Annual Site Selector Guild
Conference.
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.)
• Utilize 171St 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
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• Promote applicable incentives through direct mailings(minimum 3x/yr.)
• Promote Elk River to the restaurant industry through website
(www.elkriverm n.gov/resta urants), 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
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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
and south of HWY 10 and in 171st 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
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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
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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
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• 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.
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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.
• Continue implementation of transportation improvements as detailed in the 171st 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.
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