Loading...
6.1. EDSR 01-16-2018 Request for Action To Item Number Economic Development Authority 6.1 Agenda Section Meeting Date Prepared by General Business January 16, 2018 Amanda Othoudt, EDD Item Description Reviewed by Confirmation and Recognition of New Cal Portner, City Administrator Commissioners Reviewed by Action Requested Confirm, by motion, reappointment of Commissioner Bryan Provo Background/Discussion EDA Bylaws suggest the EDA confirm and recognize any new commissioners at the Annual Meeting. This year, Bryan Provo was reappointed commissioner by Mayor Dietz and confirmed by the City Council. The terms of commissioners are as follows:  Jerry Olson, Term Expires: 12/31/18  Jennifer Wagner, Term Expires: 12/31/18  Nate Ovall, Term Expires: 12/31/20  Matthew Westgaard, Term Expires: 12/31/20  Bryan Provo, Term Expires: 12/31/23  Dan Tveite, Term Expires: 12/31/18  Charlie Blesener, Term Expires: 12/31/22 There are no term limits for EDA Commissioners. Financial Impact N/A Attachments  N/A The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Economic Development Year-end Activity Summary 2017 Director’s Message Why Elk River? The City of Elk River strives to be proactive and take actions to facilitate Elk River has developed a reputation as the business growth, redevelopment, housing diversity, and reinvestment in light industrial hub of the Northwest metro. the community. While job growth, business and wage growth remain robust, we will continue to push to higher levels in 2018. Businesses have taken notice of our skilled workforce, transportation access, pro- In 2017, we experienced a boost in our local economy. We saw 113 new business climate, and area schools that single family housing starts, a 35% increase over the previous year. actively collaborate with local companies to Although no new commercial/industrial buildings were built in 2017, we meet their workforce needs. have seen an increase in commercial/industrial redevelopment projects. Elk River is dedicated to development and We also made 24 Business Retention and Expansion (BR&E) visits this you can count on us to work hard for you year! BR&E visits help us gauge the strength of our business climate, by: help us improve our services and identify opportunities to support and grow our local businesses.  Assisting existing businesses with their expansion and growth needs. The EDA added the Beautification Committee which gained popularity as the year progressed. Ten businesses in the community were selected to  Assisting companies with relocation to receive awards recognizing them for either making substantial Elk River. improvements to their property or maintaining their properties in an  Maintaining a “how do we get this done” attractive manner. culture, shared by elected leaders and In 2017, we received 16 inquiries from companies wanting information city staff. on how to expand, relocate, or start new. Although, not all of them will  Seeking creative combinations of city, solidify plans to develop projects over the next year, we keep the line of county and state financing tools communication open so when they are ready to make that next step, we are here to help. In 2017, the Elk River Economic Development Authority in collaboration In 2018, we look forward to attracting our targeted industries to our with the Housing and Redevelopment community to strengthen and diversify our tax base. Authority completed a review of all of our financial policies in an effort to create more user-friendly applications. The EDA and the HRA also joined forces to create a Joint Finance Committee to Amanda Othoudt, EDFP review all financial applications going Economic Development Director forward. aothoudt@ElkRiverMN.gov 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 locate or grow their companies. One reason many find Elk River attractive is its Midwestern work ethic, focus on alternative energy, and public/private sector economic development partners eager to assist getting projects off the ground. Elk River EDA is proud to be one of those partners. Economic Development Authority continues to assist in local business growth since it was established in 1987. Project Tracking Report 2017 – City Incentive Provided Project Year Company Acreage Jobs to Total Private Capital Increase in Tax Developed be City Investment Base created Incentive 2016-2017 Die Concepts, Inc. 0 12 $335,200 $926,000 $9,025 2017-2018 Truck Shop 2.5 5 $75,000 $1,287,100 $10,518 Total 2.5 17 $410,200 $2,213,100 $19,543 Die Concepts, Inc. completed their project in early 2017. The project resulted in the creation of 12 new fulltime jobs in Elk River and an increase of $9,025 in annual property taxes. Employee wages range from $23 per hour to $29 per hour. They have since added another fulltime employee. The Truck Shop Project is a redevelopment project located along Proctor Avenue. The project will feature a 7,216 square foot light maintenance facility for Beaudry Oil & Propane Company. They will be creating five new fulltime jobs paying $15 per hour. Project Tracking Report 2017 – No City Incentive Provided Project Year Company Acreage Jobs to be Building Capital Increase in Tax Developed created Permit Investment Base Revenue 2017 Chow 6.08 125 $65,285 $3,500,000 $42,300 2017-2018 Elk River Senior 4.49 60 $320,684 $18,000,000 $149,600 Living – 100 Units 2017-2018 Sherburne County 9.50 5 $577,423 $63,000,000 N/A Govt. Center Total 20.07 190 $963,392 $84,500,000 $191,900 CHOW Mixed Grill and BBQ opened their doors on October 12, 2017. They employ over 125 full and part time employees. The restaurant features 8,654 square feet and can accommodate approximately 200 people. Elk River Senior Living is currently under construction. They are projected to open July 1, 2018. The facility features 100 units of independent living, assisted living and memory care. Marketing the city as a destination in 2017 We continue to partner with Sherburne County, Greater MSP, and Minnesota Marketing Partnership through the Minnesota Department of Employment and Economic Development (DEED). The partnerships allow us the opportunity to leverage our current marketing budget, attend market visit s, conferences and trade shows that revolve around our four targeted industries. We Staff connected with the Minnesota Twins, Vikings, Wild and Timberwolves through paid advertisements in each affiliates yearbook. Each ad increased the city’s exposure by over 10,000 impressions. The city was one of several sponsors of the annual Minnesota Familiarization (FAM) Tour, which was attended by six site selectors from all over the country and Asia. Also during 2017 staff moderated a data center forum, participated in an EDAM webinar with Xcel Energy, Great River Energy, Dakota Electric and GreaterMSP, presented at the Real Estate Journal Data Center Summit and exhibited at the annual MNCAR Expo and the annual Elk River Chamber Golf Tournament. 2017 Advertisements Magazines Subscribers Cost Cost/impression 10 333,250 $26,899 $0.08 Advertisements in over ten different publications increased the number of impressions over last year from 147,200 to 333,240 subscribers this year at an expense of $0.08/impression. The advertisements showcased a new Vibe/Pulse look to the city’s logo. The Pulse represents a visual aspect of the city’s “Powered by Nature” brand. Top Industries and Employment Healthcare – 4,489 Accommodation/Food – 1,878 Retail Trade – 3,225 Construction – 1,771 Manufacturing – 3,157 Public Administration – 1,566 Educational Services – 2,323 Transportation & Warehouse – 999 Administrative Support – 972 Other Services – 4,531 Population Unemployment Rate City of Elk River – 23,364 County – 2.7% Sherburne County – 93,528 Minnesota – 3.1% U.S. – 4.1% Demographics Education Median Age – 35.7 High School Graduate or Higher – 95.4% Homeownership – 76.6% Bachelor’s Degree or Higher – 30.8% Median Household Income - $83,585 Median Home Value - $214,900 Summary of Business Retention and Expansion Visits The City of Elk River and its EDA Commissioners have long understood the importance of conducting Business Retention and Expansion visits. These visits help build relationships between elected officials, city staff, the EDA and manufacturing businesses. In the past, meetings have ranged from formal surveys to informal meetings and tours of facilities. Our local business owners and development staff have found the informal visits to be the most beneficial. Participating companies included companies associated with machining, plastics, aerospace & defense department, trucking, well drilling and geo thermal heating, steel work and metal fabrication, data centers, nursing homes, and auto service centers. Aggregate Report of Business Retention and Expansion Visits The aggregate report generated by Greater MSP is based on the raw data collected through the Salesforce software program. This aggregate report highlights responses from key questions asked during our visits. BR&E visits are intended to demonstrate our support for local firms, assist in resolving immediate business concerns, and identify process and policy improvements to improve our business climate.