Loading...
6.2 EDSR 03-20-2017Request for Action To Item Number Economic Development Author* 6.2 Agenda Section Meeting Date Prepared by General Business March 20, 2017 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 3 BR&E visits have been completed this year. More retention visits are in the scheduling process, watch for the emails, and please RSVP and let us know if you are able to attend. Coborn's BRU CM Olsen, HRA Chair Toth, Commissioner Burandt, and staff met with Store Director Anthony Fridgen and Asst. Store Director Devin Garrett. Coborn's have been in Elk River for over 20 years and employs roughly 105 people, 27 FT and 70 -75 PT. Anthony indicated their relationship with the city has been great and have no complaints. We provided info on the EDA Energy Efficiency Microloan program and energy rebate opportunities through ERMU which they may have an interest. Amanda put Anthony in touch with Tom Sagstetter to discuss the rebate programs in more detail. Solors Optional Axis BRU Amanda, Chris, Debbi Rydberg and Chair Toth met with Dave and Colleen Solors, owners of Solors Optional Axis. Located near Spectrum Schools, they provide precision CNC machining services, specialty machining, job shopping services, and specialize in prototype development. They work with wood, soft metals, and plastics and employ 5 FT and 3 PT paying average hourly wages of $15-$20. They lease their 10,000 sf space which is sufficient. They are looking into energy efficiency improvements. They mentioned concerns with the lack of CenturyLink's broadband connectivity in the Industrial Park. Amanda followed up with her contact at CentryLink to discuss this issue. Serrano Brothers Catering BRU Staff met with Mike, Marco and Dotty who are in the process of building a new restaurant and banquet hall near the Sherburne County Government Center. They employ 3 FT and 4 PT. They expect to hire 30 employees upon completion of their new facility which will break ground this spring with a 6 -month buildout. They propose a family -friendly atmosphere with locally sourced meats and vegetables. I anticipate they will seek financial assistance for Sewer Access and Water Access Charge. Our policy was adopted in 2012 to minimize the impact SAC/WAC to new restaurants by allowing for a tax assessment payment schedule for charges. Many restaurants fail frequently for many reasons. Once a building has 4A UR SAC/WAC capacity, the intent is to maximize the use. Spreading out the costs enable second and third ventures to have a chance at success. Diamond Lake Tool — Canceled their January BR&E Visit. We are in the process of rescheduling. Stay Tuned! NEW PROJECTS Redevelopment TIF Project — Patrick Briggs Mr. Briggs submitted an application for Redevelopment TIF multi -family housing project on the former Saxon and Elk River Lodge site. Provided that we receive all of the required documents, the application will be reviewed at the March 28, 2017, FC meeting. Housing TIF Project - Patrick Briggs Mr. Briggs submitted a Housing TIF application for a 40 -unit, housing project located on Jackson St. requesting $500,000 over 15 years. The application was sent to our attorney and financial advisor for review. Provided that we receive all of the required documents, the application will be reviewed at the March 28, 2017 FC meeting. Beaudry Expansion Project Staff met with Annie Deckert, Ken Beaudry, and Jay Albright to discuss a potential redevelopment project across from his current convenience store on Proctor/CRL Mr. Beaudry is looking to redevelop four residential properties, and build an approximately 7,040 sf facility to operate a light maintenance facility for his existing fleet. Engineering staff would like to see ROW for a dedicated SB Proctor turn lane onto WB TH10, a moved ingress/egress from the existing plant to expedite rail quiet zones, and shared ponding to maximize other parcels in the area for redevelopment. MISCELLANEOUS Revolving Loan Fund Balance Reports At the request of members, a copy of the Revolving Loan Fund report is attached. MN Marketing Partnership First Quarter Meeting The meeting included a synopsis of the overall economy, workforce, the status of the state incentive programs and current projects in the pipeline. The guest speaker was Janet Ady, CEO of Ady Advantage, a consulting firm specializing in site selection and economic development marketing. She presented information about reverse site selection strategies for our region, addressed implementing various workforce related initiatives in response to attracting talent to the region and reviewed the site selection process and best practices in preparing Requests for Information. Her presentation is attached. Quarterly Sherburne County partnership meeting The quarterly meeting brings the county's economic development professionals together for networking and education. The three topics presented during the meeting consisted of an update on the Comprehensive Economic Development Strategy (CEDS) through the Central Minnesota Jobs and Training Center, Affordable Housing Review facilitated by Brad Tabke the past Mayor of Shakopee, and the Minnesota Housing Finance Agency. The MHFA is a great resource for homeowners to help offset closing costs, down payment assistance and rehabilitation loans. More information on the programs available through MHFA will be added to the HRA website. Community Economic Development Strategy (CEDS) Meeting Amanda attended the Sherburne County Economic Competiveness meeting. 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 includes Benton, Stearns and Wright Counties and will greatly increase our chances of receiving future Federal EDA project dollars. The conversation focused on regional economic development strategies and goals. The meeting was facilitated by Central Minnesota Jobs and Training's Economic Development Coordinator, Jennifer Russell. Below are some goals that were identified as a result of the meeting: 1. Promoting youth apprenticeship programs 2. Create a Regional Marketing Strategy 3. Create a Regional Revolving Loan Fund 4. Foster Business Succession Planning 5. Leverage Greater St. Cloud Development Corporation and Greater MSP 6. Leverage Private Sector and Promote Public Sector Grant Opportunities for Broadband Development throughout the region The strategies and goals from our conversation will 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. Two more meetings will occur over the next few months and will cover the following topics: The meetings are open to the public. 1. Community Resources 2. Foundational Assets Site Selector Guild Conference Amanda attended the 6th Annual Site Selector Guild Conference in Tucson. The guild comprises of 44 of the most prominent Site Selectors from around the world. Elk River was able to take advantage of the Gold Sponsorship in partnership with DEED, APEX, City of Fairmount, City of Becker, Great River Energy, Xcel Energy and WSB. Sherburne County contributes to half of our cost to attending the conference. The Gold Sponsorship allowed our group to have a private, 2.5 hour lunch with 14 Guild Members. This gave our group an opportunity to highlight each of our communities and/or organizations. This meeting was highly effective and gave the guild members an opportunity to ask questions about each of our communities. Guild Member Jason Hickey was involved in facilitating and developing one of the data centers in Elk River. He spoke of the ease of working with the city on the project. Three of the fourteen Guild members in attendance were from Germany, England, and Canada. The number of conference attendees is limited to 350. Being part of a larger delegation allows us to participate in the conference and take advantage of the opportunities that a sponsorship of this level has. EDA City Beautification Committee Meeting The first meeting of the EDA City Beautification Committee was held this week. The City Beautification Committee serves to recognize business owners, whom have made an effort to clean, repair, improve, and enhance the overall aesthetics of their property to maintain the beauty of their neighborhood. The Committee is tasked to select an applicant during the Months of May through October that has made substantial improvements to the exterior of their building and/or landscape in the past year. The committee will select a second applicant whom shows effort to consistently maintain their property in an attractive well -kept manner. Saff will be promoting the program and encouraging the submittal of new applications through the chamber, word of mouth, social media and our website. Sherburne County EDA meeting Colleen gave an update on the Promotion and Marketing of Sherburne's County data center site to the Sherburne County EDA in January. The city partners with the county on promoting their 33 -acre site. The county has contributed funds over the last two years, which has enabled staff to leverage our marketing and advertising dollars to attend date center focused trade shows and conferences. The presentation was well received and we look forward to continuing our partnership into 2017. Initiative Foundation Appreciation Letter The EDA Budgeted $3,000 in 2017 to support the work the Initiative Foundation (IF) does for our community and the region. The IF financially supports the Regional CEDS plan and provides market rate business loans and matching grants to obtain certifications for businesses, among many other community initiatives. They have been a great partner. Financial Impact None Attachments ■ Revolving Loan Fund Balance Report, March 16, 2017 ■ Presentation by Janet Ady ■ Meeting Minutes from the Quad County EDA, Human Capital and Economic Competitiveness meetings held in January and February. ■ Initiative Foundation Appreciation Letter ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MICRO LOANS Patriot Converting Preferred Powder Promo Products Ralphies TOTAL MICRO LOANS Distinctive Iron Scott Morrell LLC 5/5/2016 $200,000 3.00% 10/1/2013 $100,000 3.00% 1/13/2011 $30,000 3.00% 9/10/2013 $74,999 3.00% 3/3/2015 $126,000 2.03% 8/6/2015 $200,000 2.00% Fund Cash Balances 3/16/17/17: Micro Loan Fund - 240 $608,205.04 State DEED Jobs Incentive - 242 $125,645.53 Federal DEED $0 60 $3,593.74 $165,456.93 y 60 $967.61 $68,357.06 y 60 $167.03 $12,516.98 y 120 $724.20 $50,243.09 y $640,066.00 Micro Loan Fund 240 60 $874.72 $109,804.24 y 60 $1,011.77 186,168.40 y $295,972.64 DEED Jobs Incentive Loan Fund 242 Current Current 3/16/17 Loan Loan Interest Term Monthly Principal Borrower Date Amount Rate (Months) Payment Outstanding Current Die Concepts 6/3/2016 $185,200 2.00% 60 $936.90 $178,839.47 y Ethanol Technology 8/25/2008 $74,000 3.00% 60 $716.03 $66,729.66 N Heritage Millwork 12/22/2016 $100,000 3.00% 60 $965.61 $97,922.81 y Patriot Converting Preferred Powder Promo Products Ralphies TOTAL MICRO LOANS Distinctive Iron Scott Morrell LLC 5/5/2016 $200,000 3.00% 10/1/2013 $100,000 3.00% 1/13/2011 $30,000 3.00% 9/10/2013 $74,999 3.00% 3/3/2015 $126,000 2.03% 8/6/2015 $200,000 2.00% Fund Cash Balances 3/16/17/17: Micro Loan Fund - 240 $608,205.04 State DEED Jobs Incentive - 242 $125,645.53 Federal DEED $0 60 $3,593.74 $165,456.93 y 60 $967.61 $68,357.06 y 60 $167.03 $12,516.98 y 120 $724.20 $50,243.09 y $640,066.00 Micro Loan Fund 240 60 $874.72 $109,804.24 y 60 $1,011.77 186,168.40 y $295,972.64 DEED Jobs Incentive Loan Fund 242 State of Minnesota Department of Employment and Economic Development (DEED) Addressing Talent Issues in Economic Development wt u i ch 2, 2017 •AAdvantage Janet Ady President and CEO TODAY'S AGENDA ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com Today's Agenda • Introductions o A Little Bit About Us o A Little Bit About You • The Main Course AGENDA TOPIC DELIVERABLE The Site Selection Process How to position your community or region, whether you are rural, metro, or in-between Economic Development How to address the megatrends of risk aversion, Megatrends increased regionalism, and increased competition for ED projects A Framework for Looking at Success factors and how to approach your Talent Issues specific talent issues ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison, WI 53703 1 608.663.9218 1 AdyAdvantage.com 3 A LITTLE BIT ABOUT US ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com The Ady Advantage Ecosystem Understand what makes business competitive &amigo Businesses Economic Development Organizations Understand a region's and community's economic assets ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 0 Our Sweet Spot Site -�-� Selector's ..,� Perspective row Marketer's J7,Advantagp Perspective t1. 9 W' Ady Advantage Services for EDOs: Making It Practical ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com Consulting What is the market potential for a large industrial park in our area? How do we market an industrial property that will be vacated? How can we zero in on the prospects that will be the best fit for our area? Branding Research How can we improve RFP success? How can we ensure that we will have the talent we need for economic growth? Ady Advantage Services for EDOs How can we communicate our competitive advantages through a compelling brand? How can we best differentiate our area from all the others competing for investment and jobs? How can we ensure our messaging will resonate with site selectors and others? How can we improve the odds of achieving our growth goals? Marketing Communications What do we have to do to create a great ED website? How do we market our community/region/ state to site selectors and others? What would be the best use of our marketing resources to reach our goals? Consulting What is the market potential for a large industrial park in our area? How do we market an industrial property that will be vacated? How can we zero in on the prospects that will be the best fit for our area? Branding Research How can we improve RFP success? How can we ensure that we will have the talent we need for economi growth? How can we improve the odds of Ady Advanta6 Services for EDO� How can we communicate our competitive advantages through a compelling brand? How can we best differentiate our area from all the others competing for investment and jobs? achieving our growth goals? Marketing ions What do we have to do to cre at ED site? How do we market our communis state to site selectors an( How can we ensure our messaging will resonate What would be the best use of our ma with site selectors and others? resources to reach our -)n/ s? A LITTLE BIT ABOUT YOU ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 10 Presentation Impact Survey Feedback WHAT IS THE POPULATION OF THE JURISDICTION YOUR ORGANIZATION SERVES? Less than 5,000 � 6% 5,000 - 9,999 d 6% 10,000 - 24,999 25,000 - 49,999 � 12% 29% 50,000 - 99,999 12% About 40% of respondents are in 100,000 - 249,999 18% communities of less than 25,000. 250,000 or more 18% 0 10 20 30 ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison, WI 53703 1 608.663.9218 1 AdyAdvantage.com M 11 Presentation Impact Survey Feedback WHICH OF THE FOLLOWING REPRESENTS YOUR JURISDICTION? City/Town/Village County Multiple County Region State Other (please specify) Ell 6% 10 12% 12% 20 423% 47% Most of you (477) are from a city, town, or village. Other responses included a utility service area. 30 ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison, WI 53703 1 608.663.9218 1 AdyAdvantage.com 50 12 Presentation Impact Survey Feedback WHICH OF THE FOLLOWING BEST DESCRIBES YOUR ORGANIZATION? Privately funded (100%) d 6% Primarily (80-99%) privately - funded Mostly (55-80%) privately -6%0 funded -0 About evenly split between0%0 privately- and publicly -funded Mostly (55-80%) publicly -funded d0%© Primarily (80-99%) publicly - funded Publicly -funded (100%) 0 10 12% 18% Most of you (777) are all or primarily publicly - funded. \1 59% 20 30 40 50 60 70 ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison, WI 53703 1 608.663.9218 1 AdyAdvantage.com 13 Presentation Impact Survey Feedback WHAT ARE THE BIGGEST ECONOMIC DEVELOPMENT OPPORTUNITIES FACING YOUR COMMUNITY/REGION? OPPORTUNITIES Agribusiness zl_.� Community support We have smaller companies that continue to have the opportunity to grow, but we need some incentives in greater MN that encourage them to continue to invest here. Access to markets Strong workforce training Available sites and buildings with access to a large amount of power. J The diversity of the economic base in MN allows for a multitude of opportunities across industrial sectors such as medical device, food and ag, glass, packaging, aerospace, technology (data centers and software), natural resource extraction/use (timber and mining), healthcare IT, and a multitude of manufacturing subsectors. ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison, WI 53703 1 608.663.9218 1 AdyAdvantage.com 14 Presentation Impact Survey Feedback F WHAT ARE THE BIGGEST ECONOMIC DEVELOPMENT CHALLENGES FACING YOUR COMMUNITY/REGION? CHALLENGES Workforce Available land and housing I Lack of coordination between city and county agencies Continued investment in transportation, inconsistent funding of state economic development incentive programs. Long-term talent shortages, underemployment of minority populations, viability of rural communities where talent shortages are amplified, due to aging populations. Further, the reality that as OEM's or other large branch plant operations struggle with talent availability and quality-- the supply chain supporting if also suffers and in some cases more so... Workforce, but understanding what the workforce challenges for skills are 5 to 10 years from now from a hard skills perspective and not just what those position descriptions look like right now. How can we assist with automation potential with higher skill jobs but maybe not as many people. ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison, WI 53703 1 608.663.9218 1 AdyAdvantage.com 15 Presentation Impact Survey Feedback HAS YOUR ORGANIZATION IMPLEMENTED, OR IS IT IN THE PROCESS OF IMPLEMENTING, ANY NEW TALENT RECRUITMENT AND RETENTION STRATEGI ES? Yes [—Nearly half of you c working on talent. M I don't know AN M6% 47% 47% 0 10 20 30 40 s0 ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 16 Presentation Impact Survey Feedback HOW MUCH EMPHASIS DOES YOUR ORGANIZATION PLACE ON THE FOLLOWING ACTIVITIES? (PLEASE ANSWER IN PERCENTAGES TOTALING 100%) Business Retention and Expansion Business Recruitment Business Start-up 0 10 20 30 40 50 60 ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 17 THE SITE SELECTION PROCESS ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 18 The Site Selection Process Fatal Flaws Analysis Initial County/State/ Metro Screening r Finalist Communities Q Finalist Location ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 19 Exercise What factors would a business owner consider if looking to relocate or expand his/her business? 0 ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com Pie, Categories of Location Criteria • Operating costs • Operating conditions • Quality of life • Unique physical infrastructure ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 21 Drivers of Location Decisions ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com pal) Reverse Site Selection • What companies, industries, and people would place the greatest value on your particular mix of economic assets? ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 23 Reverse Site Selection ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 24 What Are the Major Industry Sectors? • Identify companies, industries, and people that would place the greatest value on your particular mix of economic assets Manufacturing R&D/Technology l N w 0-• Office/HQ/Data Center Warehousing/Distribution ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com PV MEGATRENDS OF ECONOMIC DEVELOPMENT ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com IRT- Megatrend #l: Desire to Avoid Risk DRIVERS Avoidance of surprises Competitiveness of the economic development field Accelerated project timelines IMPLICATIONS Increasing levels of interest in long-standing location criteria, such as: • Certified sites programs • People availability/productivity, etc. • Fiscal position and stability of regulatory/policy platforms • The long-term cost and availability of water, electricity, and natural gas Factors considered include many beyond traditional criteria, such as: • External capacity of the region • Internal capacity of EDOs Megatrend #2: Increasing Regionalism DRIVERS IMPLICATIONS Availability of data Better reflection of labor pools than either state or local jurisdictions r Close enough to know the local operating environment, yet distant enough to be able to offer a single point of contact Some searches now start at the regional level • Have to wave flag for whole state • LEDOs need to treat the region, state, and national ED organizations as "customers" FA[ways think in terms of the pooled assets regions afford local groups Work very hard to make sure stakeholders are on board - dissonance on this can break a deal The locals will always be at the table at the end of the day Megatrend #2: Increasing Regionalism AS I SEE IT I THE VALUE OF A STRONG ECONOMIC DEVELOPMENT ECOSYSTEM © AdyAdvantage Visit AdyAdvantage.com to learn more. LOCAL EDO REGIONAL EDO STATE EDO KEY ROLES 0 Readiness, of product 0 Capacity building of 0 Capacity building of • Business -friendly LEDOs LEDOs development process 0 Regional tools (Sites 0 Statewide business • Education and and Buildings database, climate, including tax alignment of local labor information, BRE policy and incentives stakeholders software, etc.) • Awareness and • Local knowledge 0 Coordination of EDOs perception of ease of • Identification of clear 0 Alignment of local doing business in the points of difference stakeholders to one state within the context of another 0 Statewide data the bigger region 0 Regional assets and 0 Statewide tools (site • Local incentives business case certification, etc.) • Target industries © AdyAdvantage Visit AdyAdvantage.com to learn more. Megatrend #3: Increased Competition for ED Projects DRIVERS The maturation of the economic development field Increased sophistication of relocating/expanding companies, especially as incentives have proliferated A limited pool of relocating and expanding companies L r IMPLICATIONS Increased emphasis on Business Retention and Expansion (BRE) • Your BRE is your best defense again competing regions' business recruitment programs • How you treat your current businesses is the best indicator of how you'll treat my client Synchronization among stakeholders and local, regional, state players Knowing your value proposition is key Branding to communicate your value proposition sets you apart Community image and reputation matter More high-profile, direct -by -company searches Summary MEGATREND IMPLICATION Minimizing risk Be more ready and aligned Increasing regionalism Play well with others (strong regional ecosystems) Increasing competitiveness Know who you are and what projects are the best fit (differentiate) A FRAMEWORK FOR ADDRESSING TALENT ISSUES ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com KYa An Exercise 1. What is your single most pressing talent issue in your community or region? Be specific. Examples: Our region is losing a disproportionate number of 18 -24 -year-olds. Our largest six employers currently have openings for 70 CNC machinists. We attract 3,500 students each year to attend local colleges and universities, and 80% of these are from outside our area, but 95% of graduates each year leave upon graduation. We would like to attract entrepreneurs because data shows we have fewer start-ups per capita than other communities. ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 33 Three Fundamental Types of Talent Strategies Talent Retention Talent Attraction ruining today Talent Development ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison, WI 53703 1 608.663.9218 1 AdyAdvantage.com 34 An Exercise 1. What is your single most pressing talent issue in your community or region? Be specific. 2. What has been the most successful talent program that you are aware of? What talent issue did it address and how? ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 31 ED Talent Strategy Setting 1. Conduct an honest assessment of your region's assets, including those related to talent. 2. Set your vision forth e region's future. 3. Identify gaps between your current and desired state, including talent. These are your "talent issues." 4. Develop talent strategies tailored to your region's assets and goals. ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com Ki: Lessons Learned • Articulate the specific talent issue. rem o Five Whys exercise o Make sure to include employer input o Not just where the issue is now, but trends so that your solution can "skate to where the puck will be" • Bite off one issue at a time to make it manageable and to get some wins underyour belt to build momentum. • Beware talent recruitment mandates that do not build first on talent retention and talent development. • Beware talent initiatives that are knee-jerk reactions to an issue that are not grounded in strategy: e.g., the "recruitment website." • Talent strategies need to align with the organization's overall strategies. They cannot be looked at in isolation. ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 37 Talent Retention and Development Strategies TainingToday • Keeping people once they do come to your community o Programs to integrate college students into the community, so they are more likely to stay in the community after graduation o Formal programs to integrate newly relocated people into the social and business networks o YP orientations (900 people in Lincoln!) o "Match" -type survey to integrate people into the community • Help existing workers enhance their skills and career opportunities o Helping residents just short of degrees earn their papers o On-the-job training and employer -led initiatives ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 38 Talent Retention and Development Strategies ai TQ`n` T°dQy • Engaging people earlier; educating kids (and their parents) about career opportunities o Career programs targeting secondary school kids o Academies and other school -to -career programs o Expanding STEM learning into PK -12 public schools o Reality 101 to educate high schoolers on positions o Bratwurst grill competitions o City kids learning about agricultural careers o Using the German apprenticeship approach in the US o Boy Scouts program -for boys and girls -to learn about career opportunities in manufacturing while addressing an insurance liability barrier ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 39 "itTalent Retention and Development Strategies TainingToday • Engaging people in local businesses o Programs to convert retiring baby boomers' businesses into ESOPs to prevent their closure and increase remaining employees' commitment to the business and the area • Engaging people later o Programs to keep baby boomers engaged in the workforce even after they "retire" ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 40 Talent Retention and Development Strategies • Getting the right people trained on the right things o Classes on soft skills and G M P o Educator internships to connect them with needed skills o Aligning workforce development systems with businesses' needs Twining Today o Having unions, colleges and universities help train people for expected jobs • Strategies that incent desired behaviors o Dangling incentives in front of existing workers, such as employee stock, double overtime pay and quarterly bonuses o Raising wages o Employers pay for training, offers on-site classes, and built a training center so workers could earn industry certifications ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 41 Talent Retention and Development Strategies ai TQ`n` T°dQy • Getting underemployed and unemployed people more fully employed o Helping residents just short of degrees earn their degrees o Promoting non-traditional careers (e.g. women in manufacturing, girls in the trades) o Community Ventures program that started in Michigan for bringing former prisoners into the workforce o Program in Sheboygan, Wisconsin to bus in willing workers without transportation to work in manufacturing (the "Greater Praise" bus) o Veteran hiring events o Outreach to Centro Hispano, Hispanic Chamber of Commerce, etc. ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 42 Talent Attraction Strategies • Additional strategies o Internships to get people here, hopefully keep them on o Recruitment trips to colleges and universities outside the area on behalf of area employers o Executive recruitment tours, trailing spouse tours ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 43 "I" Talent Attraction StrategieF f, AW • Strategies that remove barriers to relocation (housing, transportation, day care, health care) o New senior housing to free up big country homes for growing families o Superior Industries bought a $300,000 apartment building and now spends another $250,000 a year on housing and plane tickets for 40 to 47 workers who migrate from Mexico to work at its concrete plant seven months each year. o Offering a day care center on-site for 100 children, where workers get a 30% d iscou nt o Offering an on-site clinic ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 44 Talent Attraction Strategies • "Boomerang" strategies to bring high school and college graduates back home o Facebook pages that "just ask" o Traveling governors and sports bars • "Cool cities" recruitment o Greg from Fargo o Fort Wayne Region spending $1.5 billion on dozens of QOL projects o Marketing campaigns by state EDCs and others • Scholarships or stipends for people who meet certain criteria o Kansas' Rural Opportunity Zones program, and others o New York's Post Production Fellowships • Immigration and/or entrepreneurship visas ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 45 Parting Thoughts • The talent conundrum wasn't created overnight, and it won't be solved overnight. • There is not a silver bullet for all of today's talent issues. • That said p although it's a complex issue it doesn't lend itself to complex solutions. The way to eat an elephant is one bite at a time. • To get started, look at labor data, discuss goals, identify gaps, and then plan. • Whatever the barrier to attracting talent is in your area - whether it's lack of housing, perceptions of your community, the safety of downtown, or the lack of commuter transportation - it is now an economic development issue. • Economic Development professionals need to take a leadership role, because of your understanding of businesses, your ability to get things done, and your relationships and credibility with multiple stakeholders. ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 46 Thank You Slides from today will be available to registered participants via email link. 608.663.9218 iadyPadyadvanta eg com w. www.linkedin.com/in/janetadyl Talent Toolbox for Economic Developers Published February 2016 Rural Economic Development Toolbox Published September 2014 Blog and newsletter at www.adyadvantage.com ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 47 Special Offer for Attendees • Free benchmarking of your organization on the key factors included within the Capacity Readiness Scorecard. • In return for filling it out, you'll get: o A customized report for your organization, showing how your organization compares to your peers on key factors from the Capacity Readiness Scorecard. o Confidentiality - only your organization will know your organization's ranking. https://www.surveymonkey.com/r/CapacityReadiness ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 48 QUESTIONS? ©Voltedge, Inc. dba Ady Advantage© 1 613 Williamson St, Suite 201 1 Madison; WI 53703 1 608.663.9218 1 AdyAdvantage.com 49 Meeting Minutes 1.9.2017 Community Economic Development Strategy SHERBURNE County Human Capital Discussion Sherburne County History Center Facilitators: Dan Weber and Jenn Russell Attachments: Agenda CEDS Guidelines Develop MN SWOT Analysis MADO Comprehensive Development Strategy for Greater MN Sign In Roster 1. Welcome and Introductions (30 attendees) Attachment: Sign In Roster 2. Significance of the CEDS and outcomes Jenn — Currently the four county region does not have a current CEDS plan. CMJTS applied for a grant in order to hire Jenn and write a current CEDS plan. Basic istory of the CEDS and the region was given. Outline of the day was given. Noted this was the first of four meetings that will be held in Sherburne County to gather information for the CEDS plan. 3. Demographic report - Luke Greiner, DEED Regional Labor Force Trends. Power point will be distributed - Population trends for Sherburne County are remarkable compared to other regions in the state. In the last five years population has slowed in the region. Grown four times faster than MN as a whole, so population growth is still high for the region. Approx. 20,000 new people since 2010. Trying to determine how this fits into our jobs. Bottom line this is a growth in workforce - Trends point to continued slow growth, across the state and across this region. This slowed growth is an issue for the business development, workforce is harder to attract. - Positive population growth is a strength, but will not continue - Currently 49.000 people are 25-64 years which is 54%. MN is at 53.4% - Sherburne is younger than MN (36.6% are under 25 compared to 33.2% for MN) - Racial Change — 94% of population is White. Sherburne County is must less diverse than the state, but is quickly changing. Fastest growing groups are Black/African American and Hispanic/Latino origin Growth has been insignificant though - Employment status—very high employment participation rate 73.5% (mn is 10%) Low poverty rate 7.5% (10.2% for MN) - Employment decreased from 2014-2015 by 279 jobs — expected this to be tied to a specific business reporting - Minimum cost for typical MN family is $18.81/hr in Sherburne County (2 adults and 1 child) - Projected growth — expected to continue growing but at a different pace. Half of the rate it has grown over the last 15% 4. SWOT Analysis Informal brainstorm - STRENGTHS - Educated workforce - High participation rate - Higher job wages - Younger workforce - Transportation infrastructure - Educational (higher ed) facilities - Access to strong local medical facility - Heavy retail (possible weakness) - Business services available - Strong development/relationships/partnerships with govt and business etc - Strong school system - Great recreational opportunities - Good water quality - Options for disabled employment opportunities - Youth apprenticeship program (school program) - Location — between St Cloud and Metro - Employer based training - Access to low interest rates when borrowing money Informal brainstorm —WEAKNESSES - Broadband - Housing - Lowwages— causingcommute Commuter patterns - Wage competition with the metro - Location — when competing with wages between St Cloud and Metro Education below state median for higher education - Teacher shortages - Aging population - Students not prepared for mfg jobs - Awareness of local jobs — statewide Poor agriculture land - Amenities, culture, etc - Limited public transportation Cultural difference between generations Generation Gap Informal brainstorm — OPPORTUNITIES/THREATS - Awareness of local jobs (world's best workforce) - Strong business demand - Education of local business - Matching up of labor force and business - Develop partnership with local business and education - Working closely with higher education to keep students local - Innovation/entrepreneurship - Young families — prior fuel for growth - Additional partnerships - Robotics program/diverse school program - Leverage deed programs - Emulate existing programs for underserved schools - Power plants (uncertainty) 5. Small Group Discussion — Develop Strategies Small groups (3) to discuss strategies. Focus on weaknesses and how are we going to work on this in the region. Discuss projects that will be going into the CEDS plan as strategies to the weaknesses One will report back. Strategies surrounding Workforce Development and Educational Achievement: - Develop youth (K-12) and Post -Secondary apprenticeship program (replicate CMMA) ***** - Leveraging state and federal funding for broadband development ***** - Attracting immigrant workers from St Cloud market (increase reaches) to help bridge gap of labor force - Educational pipeline - Experience learning (work out ways to try occupations) (K-12) - Mentoring youth (k-12) - Apprenticeship for those at the end of their education program (post -secondary) - Full implementation and community support for "world's best workforce" mandate - Partnering with local mfg. and develop training needs — facilitate the framework *** Voting —on the above strategies to determine CEDS inclusion (noted above with *) The following strategies were chose by the group as requiring further research and exploration to be included in the CEDS plan. A. Partnering with local mfg. and develop training needs — facilitate the framework *** B. Develop youth (K-12) and Post -Secondary apprenticeship program (replicate CMMA) ***** C. Leveraging state and federal funding for broadband development'" 6. Next Steps/Future Meetings Next Mtg February 27 at the Stearns County Historical Center — Focus on Economic Competitiveness Dan will follow up with a meeting invite 7. Adjournment Meeting Minutes 2.27.17 Community Economic Development Strategy SHERBURNE County Economic Competitiveness Discussion Central MN Jobs & Training Services Facilitators: Jenn Russell Dan Weber Attachments: Agenda Sign In Roster Presentation (handed out) 1. Welcome and Introductions (24 attendees) Jenn introduced the project, and CMJTS role, and goal to complete the CEDS plan for the four county region in 2017 Attachment: Sign In Roster 2. Recap of Human Capital Mtgs All four counties have held their meetings. Highlighted the SWOT results: strengths, weaknesses, opportunities and threats that were common among all counties Listed all the strategies for all four counties Common Themes consistent across all counties: broadband, educating the youth 3. Goals for today: Develop Goals 7W Diversify and strengthen the regional business community Create an entrepreneurial environment and culture to enhance existing business and grown new business Increase employment in the region 4. Presentation: Bridget Tuck —University of MN Extension Discussion about economy from an employer perspective - Employment trends: steady growth in the early 2000, recession caused dip in 2008, and since then a nice steady growth, peak again in 2012 with employment levels higher then pre -recession levels. This is better growth then other counties - Year over year employment change — consistent growth, nothing standout - Employment change 23% growth over 2001-2016. Wright County was the largest growth rate from our region. This might be tied to population growth — consistent with regional growth. - Added 4000 more jobs then what would have been expected based on recession losses, population growth, etc, so this is a real positive. Strong outlook - Commuting patterns — 34,000 leave the county daily and 14,000 commuting in and 9,500 live and work. Top commuting out location was to St Cloud. - Employment by industry— Professional/business services, top sector - Mfg, Professional/Business and Ag are top three for the state — for the region consistent top two, and three is trade instead of agriculture. - Only of the only regions to gain jobs in mfg - Health Services stats - Retail trade stats (4,000 jobs in the region) - Mfg (4,500 jobs in the region) - Ag (700 jobs in the region) - Utilities UTITLIES: For every 100 utility jobs, there are another 27 jobs created in the county. This is a huge supporting impact. This isn't typical. - MFG: For every (fabricated metal) for every 100 jobs, it creates another 43 - TRADE: For every 100 jobs in retail there are an additional 26 created. 5. Small Group Discussions — Strategy discussions 1. Promotion and Implementation of youth apprenticeships ************** 2. Leverage Greater MSP and GSDC 3. Broadband —growing beyond existing programs, enhancing private/public relationships. Feasibility for fiber study. Identify highest priority areas. *************** 4. Public Infrastructure to allow and sustain growth ***** 5. Regional Marketing strategy (jobspot) ************ 6. Regional revolving loan fund to allow capital for startup increase maximum available to $250,000 for individual projects ***** 7. Business succession planning (attach funding) 8. Workforce — promotion and marketing the amenities available in the counties. Marketing to the young people that are already here, that the jobs are here too. Market to bring Millennials in. Recruiting back 'our own'. * 9. Stop and shop weekday activities along the transportation corridors. 10. Backfilling the aging workforce — apprenticeships, partnering with schools and businesses. *** 11. Housing — recognize more available housing, regional housing study. ********* 12. Reaching out to non-traditional workforce to fill local jobs: immigrants, veterans, youth, disabilities. ****** 13. Intentional connections with E-12 schools and industry. ******* 14. Wages in the region — close the wage gap. ******* 15. Making employers aware of employee retention * Voting — on the above strategies to determine CEDS inclusion (noted above with *) The following strategies were chose by the group as requiring further research and exploration to be included in the CEDS plan. A. Broadband —growing beyond existing programs, enhancing private/public relationships. Feasibility for fiber study. Identify highest priority areas. *************** B. Promotion and Implementation of youth apprenticeships ************** C. Regional Marketing strategy (jobspot) ************ 6. Next Steps/Future Meetings March Joint Meeting with all Counties — Community Resources Jenn will follow up with a date, time and place 7. Adjournment (320) 632-9255 405 First Street SE Little Falls. MN 56345 January 25, 2017 Calvin Portner City Administrator City of Elk River 13065 Orono Parkway Elk River, MN 55330 Dear Mr. Portner, Mayor Dietz and Council Members, ifound.org We have received your 2017 appropriation, in support of the work of the Initiative Foundation, in the amount of $3,000. Thank you! Together, we work to build strong local economies and vibrant communities in Central Minnesota. Your investment supports economic development through business financing activities designed to create living -wage jobs, diversify economies and leverage private sector investment. Communities are strengthened through signature leadership training and capacity building programs, grants to local units of government and nonprofit organizations, early childhood initiatives, and scholarships. This work will provide lasting impact on the health of the region and the future of rural Minnesota. We truly value your partnership and your continued support. Sincerely, Matt Varilek President 4 Powering Possible Da�,L Carrie Tripp Vice President for Ex ernal Relations Equal opportunity lender. provider and employer.