05-25-2018 EDA MIN 410
City of
Elk ,. Special Meeting of the Elk River
River Economic Development Authority
Held at the Elk River City Hall
Friday, May 25, 2018
Members Present: President Tveite, Commissioners Provo, Olsen,Westgaard, Ovall,
Wagner, and Blesener
Members Absent: None
Staff Present: Economic Development Director Amanda Othoudt and Economic
Development Specialist Colleen Eddy
Others Present: Ron Touchette, Rock Solid Companies;Ryan Hardin, Hardin
Companies
I. Call Meeting to Order
Pursuant to due call and notice thereof,the meeting of the Elk River Economic
Development Authority was called to order at 8:00 a.m. by President Tveite.
III 2. Work Session
2.1 Current Market Conditions
Ms. Othoudt introduced Ron Touchette with Rock Solid Companies and Ryan
Hardin with Hardin Companies.
Mr.Touchette discussed the current market conditions and stated the Elk River
community has its own unique commercial identity. He currently has seven leases
and three available sites in Elk River. He stated that he sees challenges in Elk River
as there is no clear direction in Elk River and a lot of decisions are inconsistent.
Ryan Hardin reviewed some of his listings in Elk River. Retail strip malls may be
challenging to fill in the future, as they are becoming functionally obsolete with more
and more online shopping/ecommerce. Industrial land sales are going for less than
$2.00 sq. ft. in the area. The city should consider adjusting the sale price of the
industrial property they own. Mr. Hardin is concerned with the lack of inventory.
He stated that sometimes the city approves incentives that solve a current problems,
not necessarily the road ahead.
President Tveite asked if the lack of inventory hurts Elk River. Mr. Touchette feels
that it does hurt our community as developers are looking for sizeable acreage,which
IIIElk River does not currently have.
Economic Development Authority Special Meeting Minutes Page 2
May 25,2018
Commissioner Provo asked about incentives for land and should the city abate away •
to remain on a level playing field with other communities?
Mr.Touchette's response was that we should only provide incentives for projects
that need it,and not provide abatement/incentives for projects that don't need it.
Mr. Hardin's response was that the city should give land away that can't be sold, and
target specific types of industries.
Some takeaways Mr. Touchette and Mr. Hardin provided to the EDA:
1. Decide whether or not we want to own land or form partnerships.
2. Stay competitive on land pricing with other communities.
3. EDA owned land decide to give it away per the terms of a development
agreement.
4. Know the current inventory.
5. Have a set process.
6. Articulate how you are going to get things done.
EDA members stated this was a good presentation and would like to see this again at
least once a year.
2.2 SWOT Analysis
Ms. Othoudt distributed the SWOT analysis that each member participated •
in. She asked the members to write down three goals each member would
like to see in the next one,three and five year time frame. The commission
discussed the analysis. Member Westgaard stated that the Hwy 169
Corridors of Commerce project is a game changer for Elk River and feels the
city should start marketing the project and the 530 acre gravel mine area.
SWOT Analysis
Strengths—
• Image and Public Safety
• Municipal/Utility—Reliability
• Community of Elk River is a selling point,Parks and Environment,
Accessibility to Natural Resources
• Good Infrastructure
• Schools and Reputation
• Workforce
• Sales Tax Study showed that just as many people are going out, as
they are coming in.We are not just a bedroom community anymore.
• Greater MN versus Metro
Weaknesses
• Articulating the process, candid, clear, and complete direction
• Inventory of properties •
• Long Term Vision
• Greater MN versus Greater MN
tO � ERE1 Ir
NATURE
Economic Development Authority Special Meeting Minutes Page 3
May 25,2018
• ■ Transportation
Corridor—Rush Hours
Opportunities
• Market the stigma that we are in the"boonies",but not far from the
metro
• 169 Expansion to the north
• Marketing the quality of life, tranquility
• Good Programs Available
• Amount of available gravel mining property to the north
• Pull workforce from St. Cloud/Metro—45 Mile Radius
• Market the 530 Acres of Land Available—Gravel Mining
Threats
• We seem to be closed in,good old boy town
• Development of St. Michael/Albertville on I94—Competing
Neighboring Community
• Potentially High Tax Rate compared to others— (would like the
comparison sheet)
• Identified Process—Break down the communication silos
• Stigma—of not business friendly
GOALS-
Short Term
• ■ Fixing Customer Service Process
• Establish Measurables
Year 1
• Clarify current city process for initial meetings w/developers
• Identify 3 Ways in which our process can be better
• Establish Measurable
• Improve Communication
• Know&Able to articulate how to get things done
• Improve our customer service
• Data Center
Year 3
• Purchase Saxon
• +10%
• Marketing Plan (learn from developers)
• Net Gain 6 new businesses
• Develop Strategic Plan (increase development opportunities)
• $5M Investment
• Increase Inventory
Year5
• • +30%
• Additional Property Available (gravel pit)
• Improve Reputation
IT owEBEI eY
NATURE
Economic Development Authority Special Meeting Minutes Page 4
May 25,2018
■ Increase our Shovel Ready Inventory 40% 1111
• $10M Investment
• Brainstorm implications 169 improvement
• See all of our inventory
Due to time constraints Ms. Othoudt discussed scheduling a follow-up meeting to
continue the discussion:
3. Adjournment
There being no further business,President Tveite adjourned the meeting of the Elk
River Economic Development Authority at 10:08 a.m.
Minutes prepared by Colleen Eddy.
Dan Tveite, EDA President
Tina Allard, City Clerk •
11111
PAEAE1 iF
NATURE