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6.5. EDSR 01-16-2018City of Elk - River Request for Action To Item Number Economic Development Authori 6.5 Agenda Section Meeting Date Prepared by General BusinessJanuary 16, 2018 Amanda 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 Receive the EDA Annual Report presentation. Background/Discussion Per EDA Bylaws, it is suggested that the Economic Development Authority receive the Annual End -of - Year report. The Annual End -of -Year Report lists all projects completed and ongoing. Financial Impact N/A Attachments 2017 Annual End -of -Year Report (to be distributed at the meeting) BRE Report by Greater MSP The Elk River Vision A nelcoming community nvith revolutionary and spirited resourcefulness, exceptional p o w E A E u e r service, and community engagement that encourages and inspires prosperity ,� g /� ver BUSINESS DETAILS BR I E Survey Data Report 2017 Report based on 24 BR I E Surveys (1/9/18) Primary Business Sector Accommodation/Food Services - 13% Adm inistration/Support/WasteManagemert/RemediationServices 0% Agriculture/Forestry/Fishing/Hunting 0% Arts/Entertanment/Recreation 0% Construction 0% Educational Services 0% Finance/Insurance 0% Health Care/Social Assistance 8% Information 0% hlanagementofCompanies&.Enterprises 0% Manufacturing 21% Manufacturing-Food/Candy 0% Non Profit 0% ProfessunaVScientWTechnicalServices 13% Real Estate/Rental and Leasing 0% Retail Trade Transportation/Warehousing 0% Utilities 0% Wholesale Trade 4% Other 0% Type of Facility Includes multiple selections for some businesses 0 1 2 3 4 5 E 7 8 9 Branch Distribution Franchise Headquarters Home-based Manufacturing R&D Salesoffice Office- operation (non HQ) No response GREATER MSP" Minneapolis Saint Paul Regional Economic Development Partnership 1 8 38% BUSINESS DETAILS (continued) Is the facility owned orleased? 54',6 6{D.'•u 46'a 4" 20% 0% Owned Leased No response Has the company ownership changed? $0% 60% ` 25'6 20% 0% Yes No No response Does this company have a succession plan? 30% 71% 60% 40% 293'. 2096 0p,�% V ryr0 "'es No No response These factors contributed to change in sales: Just opened in October 2016 - weekends they serve over 1500 people Demand for quality food Building expansion, more services Need for workers They just moved in February 1, 2017 to their current location Purchased three machines, added a defense contract Moved from Ramsey to Elk River, renovated a run down building, utilized a Blighted micro loan and a forgiveable loan New services and word of mouth Diversified - able to work on RV's, collision center with paint bay Offering more services Recently opened Sales went down due to the fishing limits Limited competition New fitness coaching services Still new to the community, corporate marketing (not local) GREATER MSP" Minneapolis Saint Paul Regional Economic Development Partnership 2 Status of Company Sales Over Past Year 60% 5 C•' 50% 3B% 40% 30% 20% 1 1 3'6 10% 0% 4 0% M Decremed Been Incremed Fu.-tuated No relatve'y v: dey response stab !e These factors contributed to change in sales: Just opened in October 2016 - weekends they serve over 1500 people Demand for quality food Building expansion, more services Need for workers They just moved in February 1, 2017 to their current location Purchased three machines, added a defense contract Moved from Ramsey to Elk River, renovated a run down building, utilized a Blighted micro loan and a forgiveable loan New services and word of mouth Diversified - able to work on RV's, collision center with paint bay Offering more services Recently opened Sales went down due to the fishing limits Limited competition New fitness coaching services Still new to the community, corporate marketing (not local) GREATER MSP" Minneapolis Saint Paul Regional Economic Development Partnership 2 PRODUCTS & SERVICES Company's major products/services (based on 7 responses): Catering Our company offers 3, 4, and 5 -axis machining capabilities to create high-end quality products from many different materials. We cut shapes and configurations to your drawing specifications. Project scope is limited only to your imagination Groceries Auto dealership and quick lube tech bays Semi -conductor rechargeable batteries for computers - they make 6" wafers that has 12 layers and over 20,000 intel batteries. CNC & Manual Machining Specializing in small to medium size parts common to the medical device, computer, electronics industries with the ability to handle larger work pieces as well. Acrylic displays for Target and Best Buy along with other retail businesses Has this company introduced new products? 60% 54-% 46% 40% 20% 436 Ves No No response Briefly describe new products (based on 15 responses): New flavors of ice cream Italian, Asian and polish cuisines Voted best beef sticks in MN in 2017 home of the happy sticks New service they have a registered dietician available one day a week One more locked room for a total of 4 Inventory changes with new vendors Electronic and defense products They work with businesses who want a product and will create the product for the business Precision press dies They are able to take any sketch and build a prototype of it Servicing RVs Foot detoxifications, essential oils Local grass seed and local products They sell water testing kits to homeowners Fuse Fitness, is a company created by Luke and Nicole and is located next to Snap. Fuse focuses on specialize in customized strength workouts, individualized cardiovascular conditioning plans and nutrition coaching. GREATER MSPTM Minneapolis Saint Paul Regional Economic Development Partnership EMPLOYMENT & WORKFORCE Status of Jobs Over Past Year 60% 5C 16 50% 40% 301A 20% 8% 10% .0 0% Decreased Stayedthe Increased No same response If increased, was it hard to fill jobs? 40% 29% ' �° 24% 30% 20% 8% 10% 0% Yes No No nla response Why Openings are Hard to Fill CompeUion D Lack of candidates 4 Lack of technical Skills Lack of basic education 2 Poor work ethic 4 Challenging location D Other No Response ,. What positions were hardest to fill? (based on 8 responses) Managerial and food certification Staffing needs hire to find qualified workers with good work ethic All Machinists - need to be 18 to run machines. Machinists Mechanics Kitchen staff Welder Average # of FTEs: 7(based on 9 companies reporting) Expectations for Change in Number of Jobs Do you plan to hire in the next 2-5 years? 60% 54'b 46% 4636 50% 50% 33% 40% 21% 30% .. $% 10% 30% 14% 4% 036 4% 0% 20% 1 Decrease Be Increase Unsure No relatively response stable , Do you plan to hire in the next 2-5 years? 60% 54'b 38% 40% 50% 33% 30% 21% 40% .. $% 10% 30% 25 ?b' 096 20% 1 Yes 17% 10%4% response ' , 0% ''es N Nct sure No response If hiring, # of employees you plan to hire: 6 (average based on 13 companies responding) What types of jobs is company hiring? (based on 16 responses): Food service Servers, wait staff, cooks Variety Sales, auto mechanics etc. Sales and office support Sales, prep, detailing, sales support CNC machinists Machinists Mfg die presses People with Sketchworks experience Diesel mechanics, entry level wash bay attendants, automotive detailers Restaurant staff, kitchen staff Other professional services Biologists, chemists Fitness trainers Welding and sales Do you anticipate needing to train existing employees? 1 - - 71'0 5 13% 17% ILS No No response Is transportation or transit a concern for employees? What type of training is needed? (based on 12 responses) Internal(2) Training on specific machines Different auto makes, models Car wash specific training Machining (2) Press machines Project development They provide a training program for employees with good work ethics Food prep and handling Specific to their testing process etc. Does the community have enough housing &the right type of housing for future employees? 100% 63% 50% , 0% 17% 21'0 0% Yes No Not sure No response GREATER MSPM Minneapolis Saint Paul Regional Economic Development Partnership 4 38% 40% 33% 30% 21% 2096 .. $% 10% 096 Yes No Not sure No response What type of training is needed? (based on 12 responses) Internal(2) Training on specific machines Different auto makes, models Car wash specific training Machining (2) Press machines Project development They provide a training program for employees with good work ethics Food prep and handling Specific to their testing process etc. Does the community have enough housing &the right type of housing for future employees? 100% 63% 50% , 0% 17% 21'0 0% Yes No Not sure No response GREATER MSPM Minneapolis Saint Paul Regional Economic Development Partnership 4 MARKET INFORMATION 4% 4% Primary Market 0% 1 T2G 6 ■ Local 9 Midwest (including 1791 MN) ■ Minnesota ■ United State 9% International Does this company export? 10096 92% 80% 60`;6 44% 20% 8% 0% 0% Yes No No response INVESTMENT PLANS Investment Plans 40% 5 ■ Renovate/Expand current fac 40% keies ■ Make major equipment Ma Ma 21% purchases ■ Invest in new facilities 10% ■ None 6 0% — 3 No response Company's Fastest Growing GEO Market rw- 8% ■Local ■ M idea est (iricluding MIN) ■ Minnesota 58% ■ United State n international Is the company interested in exporting or learning about exporting? 80% Apx date of investment 40% 60% 29% 40% 30%6 20% 21% 40% 2s% 10% ' 0% — 0% Yes No No response Wthinone Within two within three Unsure year years years Company's Fastest Growing GEO Market rw- 8% ■Local ■ M idea est (iricluding MIN) ■ Minnesota 58% ■ United State n international Is the company interested in exporting or learning about exporting? 80% 59% 5s% 60% 40% 38'.6 40% 896 ' 20% 4% ' 0% — Yes No No response Investment details: Expanding to Buffalo/Monticello and interested in a food truck Will build a new facility in Elk River by new government center addition They are interested in offering new products in the near future They just expanded/added on to existing building Create one more locked room They have a basement which they can renovate Would like to purchase 2 more machines but does not have room in current location Would like to purchase two more machines There is room to expand in new building, purchase new machines in the next couple years They are looking at expanding in the next couple years they are running out of room in current location Somewhere down the line she would like to expand Interested in purchasing a new testing machine - the current one is outdated Expand training/coaching area 25% Do you currently have room ' on your site to expand? 0% 60% N/A No response 40% 2496 0% Yes No Unsure No response GREATER MSP" Minneapolis Saint Paul Regional Economic Development Partnership 5 Interested in Financial Resources? 80% 59% 60% 40% 33% 20% 896 ' 0`36 Yes No Unsure No respon se Additional Information Strengths of the community? Supportive community great to work with Helpful people, amenities and parks Great to work with city on expansion along with Elk River municipal utilities City good to work with There have been no issues with the community They love it here Great community Convenience, school district, access No issues with city - they are pretty happy here they attended town hall meetings in the past Great community, impressed with city staff and financial incentives it offers Great community - both owners live in Elk River Good community Great community! Happy to be in this community Good to work with The people! Great location Great community! Good community Does this company require follow up? 14046 —75b 140% 90% 50% 17'6 8'6 60% 096 ........ ......_ 40% 13.'.6 20% Yes Nc No 0% response City Weaknesses of the community? Signage is a concern but the city does not have much to do with this - it is more on the SA business next to them Internet is bad - Century Link Nothing noted Internet is bad Parking Sign ordinance did not allow them to put up a sign Closer to hwy 10 Nothing about the community -just stressed how difficult it was dealing with insurance Sign ordinance Have you interacted with any of the departments at City Hall? 140% 58'6 3F"; 5496 0% 'yes No No response If interacted with City Hall, what departments? Building and planning (10) EDA (2) Engineering If company requires follow up, what organzation should follow up? 0% 010 0% 0% 0% 4% Chamber College State workforce GREATER Other mSP This report has been compiled by GREATER MSP to reflect data entered into Salesforce.com from completed BRE surveys. Every effort has been made to ensure that the information clearly reflects data entered by city reps. GREATER MSP I Minneapolis Saint Paul Regional Economic Development Partnership 400 Robert Street North, Suite 1600 1 Saint Paul, MN I www.greatermsp.org 6 8396 No response