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3.1 EDSR 07-17-2017Request for Action ToItem Number Economic Development Authority3.1 Agenda Section Meeting DatePrepared by N/AJuly 17, 2017Amanda Othoudt, EDD Item Description Reviewed by 2018EDA Budget & Budget GoalsCal Portner, City Administrator Reviewed by Action Requested Information presented for discussion only. Action is to be taken21, 2017,EDAmeeting. Background/Discussion As part of the budget process, a budget workshop is advisable to the goals and objectives, major projects, and other items influeEDA budget. Staff prepared a draft budget to address several of the goals outlined in the strategic plan, downtown plan, the citys vision worksheet, and through recent EDAdiscussion. In order to meet the requirements of the EDA Bylaws, the EDA must approve the budget at their August 21, 2017, regular meeting and make recommendation to theCity Council at the September 4, 2017, regular meeting. As drafted, the proposed expenditures are $328,300. Major initiatives include a small increase in expenditures to attend the 2018 IEDC conference, slight decrease in advertising and marketing due to the partnership with Sherburne County and the Positively Minnesota Marketing Partnership, increase in wetland bank credits which will be a shared initiative between t The EDAlevy options are as follows: 1)0.0151% - Estimated balanced rate generates $319,300 in revenue and wouldnt add or draw against reserves. 2)0.01813% - Previous/Maximum rate will generate approximately $384,000 in revenue and would add additional revenue into reserves. All levy options are applied against the Estimate Market Value that will be obtained from Sherburne County. In addition to the tax levy, we also calculate interest income of $5,500 and $3,500 transfer from the HRA for supplies and shared costs. Financial Impact None Attachments EDA 2018 Budget Goals 2017-2020 EDA/HRA Strategic Plan EDA Budget Worksheet Division Performance Measures & Goals for 2018 Division:Economic Development Completed by:Amanda Othoudt, EDD Date:July 13, 2017 Performance Measure 2016 Actual2017 Estimated2018 Projected Conduct BR&E Visits132424 Personally connect with developers to tour available properties to entise development of available properties456 Promote new applications for the Revolving Loan Fund Programs and track the the percentage of applications processed to the total numbers of leads received. 3 Applications Processed3 Applications Processed3 Applications Projected Related Vision Statement Division Goal Goal/ObjectiveComments Gain Positive Exposure for the cityAttending networking events, trade shows, Strategic Recruiting: Attend targeted industry (Data Centers, Manufacturing, conferences, and site selector eventsEnergy, Medical Device Technology) trade shows, leverage opportunities 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 share responsibility with EDA and Environmental Departments private and public properties available development where wetlands impede growth for future development Maintain financial incentives to enhance Maximize and Leverage DEED monies, Support DEED Programing with local state representatives economic developmentInitiative 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 businessesvisits to local businessescohort group on a quarterly basis. Market the city of Elk River as a Contact & Network with Key Stakeholders in Strategic Recruiting: Attend targeted industry (Data Centers, Manufacturing, destinationthe Targeted Industries including Real Energy, Medical Device Technology) trade shows, leverage opportunities Estate Brokers/Agents. with local companies as often as possible by participating in the trade 2016-2020 EDA/HRA Strategic Plan BUSINESS DEVELOPMENT Attract new businesses and support existing businesses to increatax base, commercial tax base and employment base. INDUSTRIAL STRATEGIES Promote available sites, encourage business retention and expansexisting 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 increase competitive advantage and support goals Explore creative economic development collaborations Utilize Energy City and its tools to recruit new and assist exis COMMERCIAL STRATEGIES Promote available sites, encourage business retention and expansexisting 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 increase competitive advantage and support goals Explore creative economic development collaborations Enhance commercial district through business recruitment and act 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 Recycli information. Promote available sites through exhibits at various expos (minim.) st Utilize 171 FAST implementation plan to create a marketing piece for Natures Edge Business Center and an annual redevelopment action plan to monitor progress of implemen Partner with ERMU to identify applicable rebates for available c-owned property 1 Promote applicable incentives through direct mailings (minimum 3x/yr.) Promote Elk River to the restaurant industry through website (www.elkrivermn.gov/restaurants), direct mailings, Constant Contact email blasts and other marketing venues Partner with Elk River Area Chamber of Commerce to coordinate Chamber goals with economic development goals through various implementation tasks Utilizing economic development publications make contact with businesses looking to expand, relocate, etc. Review Micro Loan Program and recommend improvements to increase 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 encour to explore a career in manufacturing through plant tours, youth , 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 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 toassist in business recruitment Host quarterly Manufacturers Connection events with local manufacturers to promote financial incentives, resources and relevant topics to promote business re Produce an energy conservation best-practices brochure to provide to businesses Coordinate with Energy City to plan and market energy city event 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 localers and community stakeholders. Partner with the Elk River Area Chamber of Commerce to hold annu economic development resources and incentives (Juice Up Your Morning, Chamber lun Money Breakfast, etc.) Continued contact and relationship development with Twin City co brokers/developers 2 REHABILITATION AND REDEVELOPMENT Undertake strategies that facilitate rehabilitation and redeveloaging commercial, industrial and residential areas to ensure private reinvestment and sustainabil 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 increase our competitive advantage and support goals Enhance downtown commercial district through business recruitmen- generating activities Develop and implement a blighted properties program for both com residential properties ACTION STEPS Identify target areas for the blighted properties program Partner with downtown business association and civic groups to p new downtown activities (i.e. BNI, Chamber Connections, etc.). Partner with Elk River Area Arts Alliance to explore funding conarts 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 pre communication to improve Elk River business climate Identify current property owners and businesses interest in redevelopment efforts both north st and south of HWY 10 and in 171 Focused Area Study area Create a redevelopment policy regarding capitalizing the HRA dev parameters for purchasing parcels Create and distribute comprehensive business directory to promot Update short videos promoting available sites and applicable initiatives to distribute through social media outlets, constant contact and website 3 RESIDENTIAL STRATEGIES Maintain listing of vacant/foreclosed properties Address housing gaps with Comprehensive Housing Market Study recommendations Proactively review neighborhoods annually to ensure all home are through the code enforcement process Seek and promote available programs to improve existing housing 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/.) Continue to partner with the CMHP housing organization to fund and support a selective housing removal and rebuilding program Host an annual Realtors Day to educate realtors about the programs, processes and amenities offered by the city 4 COMMUNITY BRAND Utilize community brand strategies to effect necessary changes to strengthen and enhance community image STRATEGIES Continue to implement and enhance marketing plan that reflects the Powered by Nature brand, identifies desired target market(s), and complements other local efforts to promote the community internally and externally Maintain existing and build new community support for the Powere 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 Manufact Create profiles on first-tier business owners in Salesforce  a tracking software used to record information on local businesses and visits Benchmark the impact of the Powered by Nature brand with data fr search engine optimization analysis. Promote Public Art Installation and research opportunities to expand public art within the city. 5 TRANSPORTATION Advocate and support proactive planning for improvements to the 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/d opportunities Support efforts to leverage local funds with state/federal resou ACTION STEPS (submitted by City Engineer) Increase contact with legislators for state highway transportation improvements Complete low cost/high benefit enhancements to improve traffic f street intersections Advocate for the continued use and expansion of Northstar commuter rail service. st Continue implementation of transportation improvements as detail Focused Area Study Assure all proposed development improvements are consistent with transportation plans. Leverage State and Federal investment for mobility improvements to TH 169 and TH 10 already spent local dollars for the planning of improvements to Evaluate all available grant opportunities to determine if the l effective and feasible solution to support our objectives and st Promote the Quiet Zone, Northstar Commuter Train and Bike paths. 6 2018 BUDGET DETAIL SHEET Dept:Economic Development Authority 2017 BUDGET2018 BUDGET Acct. 201420152016 Explanation/Detail of Supplies or Services No.DetailTotalDetailTotal ActualActualActual PERSONAL SERVICES 4101Regular Pay58,53469,31984,57189,75094,850 4103Part-time Pay17,41313,57912,60012,60012,600 4104PERA4,1295,4066,5357,2507,450 4105FICA4,7974,6345,4486,3506,650 4107Medicare1,1221,1361,3181,5001,550 4108Insurance7,4638,62010,73511,60012,550 4109Workers Comp287278398450500 4110Re-employment Comp377 TOTAL PERSONAL SERVICES94,122102,972121,605129,500136,150 SUPPLIES 4201Office Supplies4,7563,6904,3104,6003,400 Office supplies 2,7001,500 Computer Software/Licensing (MNCAR, Sketchup, etc.)1,9001,900 4212Fuels & Lubes111841202,100400 Unleaded gas2,100400 TOTAL SUPPLIES4,7673,8744,4306,7003,800 OTHER SERVICES & CHARGES 4304Legal Fees9,1873888,95111,00011,000 Misc.11,00011,000 4319Other Professional Services28,99917,0002,000 ED Strategic Plan 4321Telephone3579119221,3501,000 iPad data plan (Colleen - $30/mo)375 Cell phone reimb. (Colleen - $30/mo)375400 Cell phone w/hotspot (Amanda - $50/mo)600600 4322Postage3262502781,100300 Marketing mailings1,100300 4331Conferences/Schools8,42414,72918,63211,15012,850 EDAM3,500500 Annual IEDC Conference2,700 Chamber Events500250 MREJ600400 MNCAR150150 CMMA500250 SLUC300- Springsted400400 Ehlers200200 Site Selector Conference2,5002,500 Site Selector Conference Travel1,5001,500 Misc. training1,0001,000 MADCE - (Data Center Conference)3,000 4349Advertising/Marketing62,25578,10972,94580,60073,400 Community Profiles1,5001,500 Advertising (Production & Publication)20,00017,500 Direct Mailings 1,5001,500 Business Retention & Expansion Visits800- Promo items10,00010,000 Special events5,0002,500 7/13/2017 Dept:Economic Development Authority 2017 BUDGET2018 BUDGET Acct. 201420152016 Explanation/Detail of Supplies or Services No.DetailTotalDetailTotal ActualActualActual Sponsorships (City/EDA)10,00011,000 Zoom Prospector Application for Website1,9002,400 Trade Shows & Lead Generation (includes travel)19,95016,000 EDA Website (EDA share - 1/2 EDA & 1/2 HRA)5,7005,700 Lead Forensics (Shared by EDA/HRA)1,200 Promotion & Awards2501,100 Powered by Nature sponsorships3,0002,000 Holiday card marketing1,0001,000 4359Publishing357149258350350 Public notices, etc350350 4361Insurance4587200100 Insurance200100 4433Dues/Subscriptions1,6062,5754,0624,7504,750 EDAM 450450 Chamber480480 Constant Contact300300 CMMA250250 MNCAR300300 IEDC 820820 Misc.300300 Finance and Commerce300300 Rotary250250 MN Marketing Partnership700700 MAEDC300300 MPLS/ST Paul Business Journal300300 4440Miscellaneous216,81411,88288,90013,00048,000 Initiative Foundation3,0003,000 Wetland credit bank10,00045,000 TOTAL OTHER SERVICES & CHARGES328,325126,038197,035123,500151,750 TRANSFERS OUT 34,80036,600 4720Transfers 568,000-- 4721General Fund31,90032,00034,80034,80036,600 TOTAL ECONOMIC DEVELOPMENT AUTHORITY1,027,114264,884357,870294,500328,300 7/13/2017