6.5 EDSR 01-17-2017Request for Action
ToItem Number
Economic Development Authority6.5
Agenda Section Meeting DatePrepared by
General BusinessJanuary 17, 2017Amanda Othoudt, EDD
Item Description
Reviewed by
Reports of Officers and Subcommittees and Staff Cal Portner, City Administrator
End-of-year Report
Reviewed by
Action Requested
N/A
Background/Discussion
Per EDA Bylaws, it is suggested that the Economic Development Authorit
officers and subcommittees.
An end-of-year staff report will also be provided. The Annual End-of-Year Report lists all projects
completed and ongoing.
Financial Impact
N/A
Attachments
2016 Annual End-of-year Report
Economic Development
Year-end Activity Summary 2016
Directors Message
Why Elk River?
The City of Elk River continues to make great strides in building an
Elk River has developed and grown a
enviable business climate and a great community. While job growt
reputation as the light industrial hub of the
business and wage growth remain robust, we continue to push to h
Northwest metro.
levels. After all, it is often stated that there is no finish line in Economic
Development!
Businesses have taken notice of our skilled
workforce, efficient transportation access,
Last year, the Economic Development Authority approved the 2015
pro-business climate, and area schools that
Economic Development Strategic Plan. This plan outlines our path for
actively collaborate with local companies to
development, advancing work in our identified clusters in a trac
meet their workforce needs.
metric driven format. The plan also continues to stress the importance of
diversifying the citys economy.
Elk River is dedicated to development and
you can count on us to work hard for you
In 2016 we experienced a boost in our local economy! We saw 73 n
by:
single family housing starts, 2 new townhomes, and 51 single family
remodels generating $524,749 in permit revenues. In addition, four new
Assisting existing businesses with their
commercial/industrial buildings were built, 41 commercial remode
expansion and growth needs
completed and one industrial remodel was started totaling $155,660 in
Assisting companies with relocation to
permit revenue.
Elk River
We also made 22 Business Retention and Expansion visits this year!
Maintaining a how do we get this done
BR&E visits help us gauge the strength of our business climate, help us
culture, shared by elected leaders and
improve our services and identify opportunities to support and g
city staff
local businesses.
Seeking creative combinations of city and
Private investment and reinvestment increased dramatically year with $3
state financing tools
million in public investment resulting in over $34.2 million in private
capital investment accounting for more than 34 acres of new
In 2016, the Elk River Economic
development resulting in the creation of 204 new jobs.
Development Authority in collaboration
with the Housing and Redevelopment
Looking ahead, we continue to receive numerous inquiries from
Authority launched a newly designed
companies wanting to expand, relocate, or start new. We are looking
website that is mobile friendly, and full of
forward to targeting and assisting specific business types to strengthen
up-to-date information including resources
and diversify our tax base.
for businesses, available sites and
Amanda Othoudt, EDFP
properties, housing resources, community
profile and information specific to our four
Economic Development Director
targeted industries: Manufacturing, Data
aothoudt@ElkRiverMN.gov
Centers, Energy and Medical Device.
13065 Orono Parkway
Elk River, MN 55330
763.635.1042 * www.ElkRiver.MN.gov
Working to Grow Our Local Economy
Business owners consider many factors when deciding where to loc
find Elk River attractive is its Midwestern work ethic, focus on alternative energy, and public/private sect
economic development partners eager to assist getting projects off the ground. Elk River EDA is prou
of those partners.
Economic Development Authority continues to assist in local
business growth since it was established in 1987.
Project Tracking Report 2015 -2016
Project YearCompanyAcreage Retained Jobs to Total City Private Capital
DevelopedExisting be IncentiveInvestment
Jobscreated
2015-16 GATR 14.80 063 $ 546,814.00 $ 13,249,495.00
2015-16 Sportech 14.19 20472 $ 1,288,590.00 $ 9,896,330.00
2015-16 Morrell 4.08 1058 $ 321,609.00 $ 2,380,545.00
2016 Patriot Converting0.00 022 $ 200,000.00 $ 3,981,340.00
2016 Die Concepts, Inc. 0.00 012 $ 260,200.00 $ 926,000.00
2016 Apex Embroidery1.40 025 $ 285,167.00 $ 1,750,968.00
2016 Heritage Millwork 0.00 05 $ 100,000.00 $ 2,045,900.00
Total 34.47 343207 $ 3,002,380.00 $ 34,230,578.00
Summary of Business Retention and Expansion Visits
The City of Elk River and its EDA Commissioners have a long understood the importance of
conducting Business Retention and Expansion (BR&E) visits. These visits help build relationships
between elected officials, city staff, the EDA and manufacturing businesses. Numerous studies have
shown that as many as 80 percent of new jobs are created by existing etherefore it is
imperative to maintain a positive relationship with current empl-flowing
stream of information between the local government and local businesses. In the past, meetings
have ranged from formal surveys to informal meetings and tours oMany local business
owners and development staff have found the informal visits to be the most beneficial.
Participating companies included companies associated with machiaerospace &
defense department, trucking, well drilling and geo thermal heating, steel work and metal fabrication,
data centers, nursing homes, and auto service centers.
Staff conducts an internal survey during site visits which often includes a facility tour to gain a better
understanding of each companys products or services. Information and feedback collected from
these visits is recorded into Salesforce, a state-wide database. The purpose of the survey is to assist
fulfillment of the city goal to retain and grow existing businesses and industry in
Aggregate Report of Business Retention and Expansion Visits
Our goal is to complete two, tothreevisits per month in a variety of business sectors, focusing prim
local manufacturers. In 2016, we completed 22BR&E visits, just shy of our goal of 24 total BRE visits due to
scheduling conflicts over the holidays.The aggregate report below is based on the raw data collected through
Salesforce. This aggregate report highlights responses fromkey questions asked during our visits.
Primary Business Sector
Total
02468101214
Transportation/WarehousingRetail Trade
Professional/Scientific/Technical ServicesOther
Non ProfitNo response
Manufacturing - Food/CandyManufacturing
InformationArts/Entertainment/Recreation
Type of Facility
R&D; Office-operation (non HQ)
Office-operation (non HQ)
Manufacturing; R&D; Sales Office; Office-&
Manufacturing; R&D; Office-operation (non HQ)
Manufacturing
Total
Headquarters; Manufacturing
Headquarters
Branch; Franchise
Branch
0246810121416
Business Retention and Expansion Visits
BRE visits help demonstrate community support for local firms and may assist in solving immediate business
concerns.
Has the company
Employees at this Facility
ownership changed?
100%
80%
60%
11%
Stayed the same
No
40%
Increased
Yes
20%
89%
0%
Total
Expect Number of Or Is Change Imminent?
Employees to:
15
22%
10
No
Be relatively stable
Yes
Increase
5
78%
stable
0
Total
Do you plan to Hire in the
Over the past year,
next
company sales have
2-5 years?
been
Been relatively
stable
18%
No
Increased
44%
4%
48%
Yes
Not identified
56%
30%
stable
Come and grow with us!
Facility Owned vs. Leased
Population
25
City of Elk River: 23,346
20
15
Demographics
Total
10
Median Age: 35.7
5
Homeownership: 80%
0
LeasedOwned
Median Household Income: $74,772
Median Home Value: $206,300
Does this company have a
Top Industries and Employment
succession plan?
Healthcare - 4,489
Retail Trade - 3,225
30
Manufacturing - 3,157
20
Educational Services - 2,323
Total
10
Accommodation/Food - 1,878
0
Construction - 1,771
Yes
Public Administration - 1,566
Transportation & Warehouse - 999
Administrative Support - 972
Has the Company Introduced
New Products?
Unemployment rate
County -3.4%
Minnesota -3.8%
U.S. - 4.6%
Yes
41%
No
59%