6.3 EDSR 12-19-2016Request for Action
To
IItem Number
Economic Development Authority
6.3
Agenda Section
Meeting Date
Prepared by
General Business
December 19, 2016
Amanda Othoudt, EDD
Item Description
Reviewed by
Director's Report
Cal Portner, City Administrator
Reviewed by
Action Requested
Information presented for discussion only in effort to keep the EDA updated development activity.
Background/Discussion
BUSINESS VISITS
22 Business visits have been completed to date. Staff met with Brad Peterson from The Shop Tire and
Service Center along with Chris Leeseberg, Larry Toth, and CM Olsen. The Shop employs 4 FT
technicians and 2 FT Office Staff. They are planning an expansion to their facility in 2017-18.
Staff also attended a BR&E Visit with Danyell Wendland and Hendrick Johnson at ABRA Autobody &
Glass and toured their facility. They employ 22 people at their Elk River location and also own branches
in Princeton and Waite Park. They cited concerns regarding closing off Line Avenue feeling it will
negatively impact their business due to reduced traffic. They were glad to hear that the USPS site will be
developed and that the developer plans to grade and clear-cut the trees on the site which they hope will
improve their visibility at 181St Avenue.
Two more retention visits are scheduled. Please RSVP to Colleen and let her know if you are able to
attend.
Energy City Solutions
Morrell Trucking
MISCELLANEOUS
National Development Council Economic Development Finance Training
I have successfully completed all four classes! I am now a designated Economic Development Finance
Professional (EDFP).
Revolving Loan Fund Balance Reports
At the request of members, a copy of the Revolving Loan Fund report is attached.
Project Tracking Report
At the request of the members, a copy of the project tracking report is attached. This report highlights
projects completed in 2016 and have received a form of public financing. The total amount of city
PO/ERE I Ir
incentives of approximately $3M resulted in roughly $34.2M of private capital investment in the City of
Elk River.
MN Marketing Partners 4" Quarter Report
Staff attended the 4" Quarter MN Marketing Partnership meeting. The marketing partnership provided a
synopsis of the overall economy, workforce, the status of the state incentive programs and current
projects in the pipeline. The partnership also highlighted marketing initiatives, completed trade shows
and events. Staff was able to attend a number of the tradeshows in partnership with DEED and
Sherburne County this past year. The attached presentation highlights the city's involvement in some of
the more recent trade shows.
Comprehensive Economic Development Strategy (CEDS)
Sherburne County has partnered with Central Minnesota Jobs and Training, the Federal EDA, Xcel
Energy and the Initiative Foundation to create a Comprehensive Economic Development Strategy
(CEDS) for the 7W District. The partnership also includes Benton, Stearns and Wright Counties and will
greatly increase our chances of receiving future Federal EDA project dollars. A CEDS is designed to
bring together the public and private sectors in the creation of an economic roadmap to diversify and
strengthen regional economies and includes four cornerstones under which community conversations
will occur. They are:
Human Capital
Economic Competitiveness
Community Resources
Foundational Assets
You are invited to attend a community conversation to discuss the first issue, Human Capital on Monday
January 9th from 1:30 p.m. to 3 p.m. at the Sherburne County History Center in Becker.
The conversation will focus on the local labor force, educational attainment and workforce development.
The meeting will facilitated by Central Minnesota Jobs and Training's new Economic Development
Coordinator, Jennifer Russell. The findings and goals from our conversation will then be included in our
regional CEDS plan. Projects that are included as part of the CEDS document have historically had
much greater odds of receiving implementation funding through the Federal EDA.
Financial Impact
None
Attachments
■ Revolving Loan Fund Balance Report, December 14, 2016
■ Project Tracking Report, December 14, 2016
■ MN Marketing Partners 4th Quarter Meeting Presentation
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MICRO LOANS
Current
Current
11/29/16
Loan
Loan
Interest
Term
Mont hl
Principal
Borrower
Date
Amount
Rate
Months
Payment
Outstanding
Current
Blue Egg Bakery
4/25/2013
$74,500
2.00%
120
$685.50
$0.00
Y
Die Concepts
6/3/2016
$185,200
2.00%
60
$936.90
$1809749.45
Y
Ethanol Technology
8/25/2008
$749000
3.00%
60
$716.03
$669729.66
N
Patriot Convertin
5/5/2016
$2009000
3.00%
60
$39593.74
$1749949.10
Y
Preferred Powder
10/1/2013
$100,000
3.00%
60
$967.61
$709734.86
Y
Promo Products
1/13/2011
$309000
3.00%
60
$167.03
$229935.24
Y
Ralphies
9/10/2013
$749999
3.00%
120
$724.20
$529029.93
Y
TOTAL MICRO LOANS
$568,128.24
Micro Loan Fund 240
Distinctive Iron
3/3/2015
$1269000
2.03%
60
$874.72
$1119864.79
Y
Scott Morrell LLC
8/6/2015
$200,000
2.00%
60
$1,011.77
1889265.87
Y
$3009130.66
DEED Jobs Incentive Loan Fund 242
Fund Cash Balances 12/14/16:
Micro Loan Fund - 240
$6789248.94
State DEED Jobs Incentive - 242 $119,616.93
Federal DEED
$0
MINNESOTA MARKETING PARTNERSHIP
FOURTH QUARTER MEETING
DECEMBER 8TH, 2016
BLOOMINGTON, MN
The overall Minnesota economy remains healthy:
• Nonfarm Employment: 2.89 million (10/2016)
— Strongest Sectors: Food, Technology, Logistics, Manufacturing
• Unemployment rate: 4.0 percent (10/16) — slightly up over
past 6 months
— In October, 12 percent of unemployed Minnesotans have been
without a job for 27 or more weeks, down from 14.7% in June
— Approximately 100,000 total open positions, seemingly
unchanged in past 12 months.
— USA has a 4.9% UE rate (10/16), steady from June
• 69% labor participation rate (slightly down from June;
seventh highest in the nation (62.8% in the nation)
EMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
httDS:
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services/d islocated-worker/reports
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
54 entities (EDOs. Public, Private, etc.)
R 65 registered for this event
Welcome to our new Partners (Connexus Energy, City
of Duluth, Dunham Associates) and our guests
Available balance as of 12/6/16: ^'$7,600
Q4 meeting will cost: $3,950, leaving $3,650
Recall, last year at this time, we had $18, yes, $18
dollars....
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Economic Development "Toolbox:"
Minnesota Job Creation Fund - JCF is fully subscribed as of
now. $0 available, however....
Minnesota Investment Fund — $4.9M in appropriated funds;
$5.1M in RLF —total of -'$10M until June 30tH
JTIP - $450,000 available until June 30th
MJSP: $2.8M remaining for current fiscal year
BDPI: $0 available, however...
GMEP: $26M available and unused ... non -transferable
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Economic Development "Toolbox:"
Minnesota Job Creation Fund - JCF to receive
$6.5M on July 1, 2017 (FY18)
Minnesota Investment Fund — to receive $11M
on July 1, 2017 (FY18)
FY18-19 funding (above) is per year ($13m for JCF over the
biennium and $22m for MIF)
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
- 1 application at the moment, waiting on 11 to
come in.... (JCF & MIF)
88p ojecis actively being worked by -1_ll
Mfg., HQ, Data Centers, Food Processin
Device, Logistics/Distribution, Tech
18 awarded firms since July 1St, 2016
MIF
5 awards valued at $3.36 million
Leveraging 516 jobs (new/retained)
JCF
15 awards valued at $4.31 million
Leveraging 939 jobs
ECONOMIC DEVELOPMENT
mimmeSOTA
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YMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
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26 projects (new/refurbished) from 2012 -now
$2.01.13illion in Capital Investment (spent/planned)
DEED &Partners working with multiple projects in
metro and Greater MN with potential for over
$450M capital investment
2.47M sf of space (between approved projects and
those with applications into DEED)
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
DEED working on 35+ mfg. projects
Industries include, but not limited to;
Food/food ingredients
Electronics/semi-conductors/sensors
Chemicals/fuels
Metal fabrication
Medical device
Packaging
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
DEED working on 8 new projects, since Sept.
Industries include, but not limited to;
E -Commerce
General Merchandise (retail)
Perishable/grocery
Mfg. parts distribution
Over 4 million sf (in opportunity) and over 500
jobs
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
UNIVERSITY OF MINNESOTA
MINNESOTA TECHNICAL ASSISTANCE PROGRAM
Ms. LAURA BABCOCK
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MINNESOTA WORKFORCE/TALENT LANDSCAPE
COMMENTARY AND PERSPECTIVE - DR. STEVE HINE
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
MINNeSOTA
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2007 2008 2009 2010 2011 2012 2013
2014 2015 2016
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
70,000
60,000
50,000
40,000
30,000
20,000
Annual Average
Gain of 40,000
Additional
Workers
Annual Average
Gain of <12,000
More Recently
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EMPLOYMENT AND
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MINNeSOTA
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■ Total Labor Force
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11,317
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203035
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workers between now and 2030;
87,900 of them 65 or older
15,449
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203040
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MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
2,940,000
2,930,000
2,920,000
2,910,000
2,900,000
2,890,000
2,880,000
2,870,000
2,860,000
2,850,000
2,840,000
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fewer prime
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MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
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■ Labor Force 65+
■ Total Labor Force
4,172
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4 11,323
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203035
Cumulative increase of 9,500
workers between now and 2030;
67,600 of them 65 or older
14,522
11,717
203040 2040-2045
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
60%
50%
40%
30%
20%
31.0%
0% -
White alone
0.0%
51.6%
Asian and HawaiianTwo or More Races
37.3%
10.3%
-qr
Minority Total
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
TOTAL POPULATION
Under 18 years
18 to 34 years
35 to 64 years
65 years and over
EMPLOYMENT STATUS
Population 16 years and over
Civilian labor force
Employed
Unemployed
Not in labor force
Change from 2013 to 2015
White alone or in Black or African American
combination with one or alone or in combination with
more other races one or more other races
26,769
25,743
(4,236)
7,520
(3,332)
5,623
(7,539)
9,899
46,631
3,075
29,817
19,867
17,017
18,330
46,664
26,395
(25,822)
(8,065)
8,975
1,537
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Change from 2013 to 2015
US born Foreign born
Total Population 16 and over 28,266 46,047
Civilian Labor Force 17,941 35,600
Employed 50,427 39,452
Unemployed (32,486) (3,852)
Not in labor force 10,325 10,447
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
80%
70%
60%
50%
40%
Labor Force Participation Rates of MN
Cultural Groups
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MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Increase Labor Force Participation of Existing Residents
Older Workers; Flexibility, Financial Incentives, Adjust
Responsibilities
Youth; Opportunities, Engagement, Mentoring
Persons of Color; Identify and Remove Barriers
Long Term Unemployed; Use `em or lose `em
People with Disabilities
Former Convicts
Attract Workers From Outside the State
Intra- and Inter -state Migration; Reach Out
Immigration from Abroad; Welcoming Environment?
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
0 Maintain Full Employment
Increase Productivity, Wages, Technology
up Train and Educate Workers for .lobs Available
Align Offerings, Incumbent Workers, Youth Counseling
Remove Frequent Impediments to Work
Transportation, Child Care, Sick leave
Improve Worker Mobility
Housing Markets, Portable Health Care, labor Exchange
Systems
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
EMPLOYMENTAND
ECONOMIC DEVELOPMENT
MINN@50TA
u Minnesota Eco. Dev. Magazine (version 2.0) update
Q4 2016 Tradeshow/Conference -Recap
y Q1 2017 (Jan -March) planned tradeshow/event
schedule (DEED/ MN Marketing Partners)
"Thriving in the North" quarterly newsletter — site
selectors update
Small Business Development marketing
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
"Minnesota —Thriving
in the North" v.2
10,000 copies printed
Printed in October,
distributed from
December - March
Distribution channels
Version 3. 0? Do you
want to do it?
*MINNESOTA*
FOCUS ON BUSINESS
TOP-NOTCH TALENT
DEVELOPMENT ANDTRADE
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MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
IMTS — Chicago,
er 12111-17111, 2016 ✓
MD&M — Minneapolis, September 21St -22nd, 2016 ✓
IEDC — Cleveland, September 25th -28th, 2016 ✓
Ryder Cup — Chaska, September 27th- October 2nd, 2016 ✓
World Dairy Expo — Madison, October 4th- 8th, 2016 ✓
IAMC (Fall) — Indianapolis, October 8th —12th, 2016 ✓
CoreNet Global — Philadelphia, October 16th —18th, 2016 ✓
IMN- Data Center West, Santa Rosa, October 17th —19th, 2016 ✓
National Assoc. of Foreign Trade Zones — Los Angeles, October 16th -19th, 2016 ✓
Advamed - Minneapolis, October 17th —19th, 2016 ✓
Economix — Atlanta, November 1st -2nd, 2016 ✓
MEDICA — Dusseldorf, November 14th -17th, 2016 ✓
CapRate Data Center Summit — Phoenix, November 9th —10th, 2016 ✓
Fabtech — Las Vegas, November 16th -18th, 2016 ✓
WinED event- Savannah, November 30th, 2016 ✓
OFII Event (FDI) — Washington DC, November 30th, 2016 ✓
Area Development Consultants Forum - Miami, Dec. 1st -2nd, 2016 ✓
g th_ 6 the 2016 ✓` EMPLOYMENT AND
MAEDC — Chica o December 4 ECONOMIC DEVELOPMENT
mimmeSOTA
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Is one of the world's largest industrial manufacturing
and technology shows of the year featuring more
than 2,400 exhibitors
150,000 registered attendees
DEED and partners met with over 50 firms
DEED staff working on follow-up with domestic and
international contacts �
Event is every two years
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
4
n
Attended with partners: Great River Energy/Benco, Elk
River & Xcel Energy
About 150 attendees /fewer than
& North Carolina also had booths
10 exhibitors, Kansas City
Xcel Energy moderated a panel on what companies look for
in site selection
A C -level heavy event, great opportunities to have
conversation with decision -makers
Several interactions, examples: conversation with major
enterprise executive, CEO of data center focused real estate
firms; best -practices exchange with North
Carolina/Catawba County
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Attended with partners: Dakota Electric, Elk River & Xcel
Energy
About 150 attendees / fewer than 15 exhibitors =
excellent exposure to all attendees
Dakota Electric was a panelist on "Innovations in Energy
Delivery"
A heavily "Pro -Phoenix" event, but a
showcase Minnesota's simpler/more
and business climate
nice opportunity to
inclusive incentives
Several interactions, examples: Data Points is interested in
attending events in/possibly investing in Minnesota,
Check in with existing operations — invited to speak at
!! 11 •
Silicon Desert conference in the SpringEMPLOYMENT AND
ECONOMIC DEVELOPMENT
1w immeSOTA
40,000+ attendees
Over 5,000 exhibitors
DEED partnered with Medical Alley, Mayo, and
Greater MSP
Team met with 50+ firms at the event (multiple leads
on projects)
Met with Minnesota firms as well
Follow-up on about 20 conversations at this time
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
0
it
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100+ attendees
25 site consultants
DEED and Elk River attended
DEED sponsored. Met with 15 consultants —several
new contacts
Potential to invite several to Minnesota next summer
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Successfully partnered with multiple organizations (some
present in the MMP)
Hosted over 50 existing industry and prospect guests
® Several leads on new projects and expansions
Thank you all for your support and coordination!
EMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
JPMorgan Chase Healthcare Conference —January Stn -13th,
San Francisco, CA
Data Center & Utilities Conference —January 24th -25th,
Atlanta, GA
Shared Services and Outsourcing Network - March 7-10,
Orlando, FL
Site Selectors Guild Conference — March 13th -15th, Tucson, AZ
More to come....
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Will be sent to 326 site selectors
Added 5 new contacts this quarter (E&Y, GLS, SSG, Mohr
Partners, Baker Tilly)
• Highlighted project awards
Highlighted Bemidji (community)
Highlighted Minnesota Power
Highlighted the Minnesota Investment Fund
Highlighting data center sector
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Q1 newsletter to focus on the following:
Project Awards
Community highlight (Albert Lea)
Community highlight (Mankato)
Healthcare IT sector in Minnesota
New shovel ready certifications (if applicable)
EMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
$80,000 effort (focused on messaging to minority owned
businesses) to inform about services from DEED
SBDC services
DEED business programs (MIF, JCF, JTIP, etc.)
Funds to support do not conflict with other marketing efforts
Project Underway in targeted areas of Minneapolis/St. Paul.
Will be expanded to strategic locations across Minnesota in
coming months
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
DEED has carved out funding from marketing budget to have
new booth/tradeshow accommodations designed and built
a We are also looking at a more versatile set-up that will
accommodate different "skins", so it is more flexible and can
be more easily tailored for each event/show
New pop -ups as well...
Status—still in process of getting samples and bids
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
Shane Delaney — new DEED Communications Director
NatalieSiderius — new Southeast Business Development Rep
Brad Simenson — promoted to oversight of loan programs
Kathleen Motzenbecker departed DEED (Dec. 1St )., joining
Minnesota Medical Alley. No replacement named yet.
MEMPLOYMENT AND
ECONOMIC DEVELOPMENT
mimmeSOTA
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