7.3. EDSR 09-16-2019 Request for Action
To Item Number
Economic Development Authority 7.3
Agenda Section Meeting Date Prepared by
General Business September 16, 2019 Amanda Othoudt, ED Director
Item Description Reviewed by
Director Report Cal Portner, City Administrator
Reviewed by
Action Requested
Information presented for discussion to keep the EDA updated on development activity.
Background/Discussion
BUSINESS VISITS
Completed 13 BR&E visits with more scheduled. Please RSVP if you are able to attend.
NEW PROJECTS
We are working with two applicants on public financing options and applications for expansion projects.
Projects often take several months to work through their due diligence process.
SITE SELECTORS GUILD CONFERENCE
Staff attended the Site Selector Guild Fall Forum hosted by 29 Guild Members from around the globe.
Roughly 250 people were in attendance and heard a Keynote by Ross Perot Jr., Chairman of the Perot
Group, which manages Perot family interests in real estate, oil, gas and financial interests in the Plano-
Dallas area. Breakout sessions included Structuring a Winning RFP Response and Site Visit Plan of
Action. Key take-a-ways include establishing an executive team of local stakeholders and business owners
to be spokespersons for our community during site visits with brokers and site selectors. Staff will be
working on establishing a team of business stakeholders that will represent all aspects of Elk River.
MISCELLANEOUS
Public Art Initiative
The RFP for Public Art has been published online, submitted to local artists, and sent to the Central MN
Arts Board. We have two registered artists. The survey has hit social media and closes on Oct. 1. The
results will be sent to all registered artists.
Strategic Plan RFP
Staff is in the process of developing a Strategic Plan RFP and working alongside our legal team. We
anticipate a draft ready for the EDA to review at the October 21, 2019, meeting.
MN Marketing Partnership Meeting
nd
Staff attended the 2 trimester Marketing Partnership meeting. The partnership is a state-led initiative
that enables us to leverage our marketing dollars by marketing our community, region and state. We have
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
partnered with this group by attending various trade shows in our target markets, site selector events, and
familiarization tours.
Revolving Loan Fund Balance Reports
At the request of the Commission, a copy of the Revolving Loan Fund report is attached.
Financial Impact
N/A
Attachments
Revolving Loan Fund Report
nd
2 Trimester Minnesota Marketing Partnership Presentation
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
MICRO LOANS
Current Current 9/12/19
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 $159,875.98 Y
Heritage Millwork 12/22/2016 $100,000 3.00%60 $965.61 $76,265.53 Y
Patriot Converting 5/5/2016 $200,000 3.00%60 $3,593.74 $0.00
Ralphies#1 9/10/2013 $74,999 3.00%120 $724.20 $32,261.62 Y
Ralphies#2 8/28/2018 $19,175 3.00%60 $343.65 $15,566.31 Y
TOTAL MICRO LOANS $283,969.44 Micro Loan Fund 240
Distinctive Iron 3/3/2015 $126,000 2.03%60 $874.72 $89,338.20 Y
Scott Morrell LLC 8/6/2015 $200,000 2.00%60 $1,011.77 165,343.35 Y
Orluck 7/17/2018 $200,000 3.00%84 $2,642.66 171,723.74 Y
$426,405.29 DEED Jobs Incentive Loan Fund 242
Fund Cash Balances 09/12/19:
Micro Loan Fund - 240 $955,487.04
State DEED Jobs Incentive - 242 $88,833.04
MINNESOTA MARKETING PARTNERSHIP
2ND TRIMESTER, SUMMER MEETING
AUGUST 15TH, 2019
ST. PAUL, MN
12:00 PM –3:00 PM
AGENDA
Today’s Agenda
•12:00PM –12:45PM Networking Lunch & Welcome
•12:45PM –1:30PM Kevin McKinnon –DEED update
•1:30PM –1:45PM Kylle Jordan & John Shoffner –FAM Tours
•1:45PM –2:00PM Break
•2:00PM –2:30PM Tom Lambrecht –MMP Structure & Future
•2:30PM –3:00PM Commissioner Steve Grove
•3:00PM Wrap Up & Adjourn
KEVIN MCKINNON
DEPUTY COMMISSIONER
ECONOMIC DEVELOPMENT DIVISION
MINNESOTA DEPARTMENT OF EMPLOYMENT AND
ECONOMIC DEVELOPMENT
DEED Updates
•Executive Director –Business Development
•Executive Director –Broadband
•Innovation
•CareerForce
Automation Incentive Pilot -MJSP
•Purpose –assist small manufacturing
businesses (<100ee's) investing in automation,
help worker shortage, productivity, safety
•Grants –$500,000 for the pilot (up to $25,000)
•Results –increased wages, job retention
•Contact –651-259-7514
or deed.mjsp@state.mn.us
Launch Minnesota
•New Director –Neela Mollgaard
•Advisory Board
•Office Space
•Grants Process
•Education Partners
RECENT PROJECT WINS & AWARDS
Recent Wins and Awards (Apr. –Aug.)
Company Location Jobs Investment
Alexandria Extrusion (custom components)Alexandria 14 $16.4M
Reprocessed Plastics (recycling)Garfield 20 $638K
Sage Electrochromics (electronically tinted glass)Faribault 16 $1M+
McLaughlin Gormley King (insecticides) Brooklyn Park 37 $13.9M
Northrop Grumman (security & logistics)Plymouth 60 $2M
Renewal by Andersen (windows & doors)Cottage Grove 125 $35M
Toppan Merrill (specialty digital printing)Sartell 40 $6M
Blattner Energy (energy generation, construction)Avon 15 $14.5M
Barrett Petfood Innovations (premium pet food)Little Falls 85 $20.6M
Fox Valley Metrology (precision measuring equip.)Stacy 17 $2M
Puris Proteins (plant-based food ingredients)Dawson 75 $90M
EVENTS –2ND TRIMESTER
Tradeshows/Events –2nd Trimester 2019
•MMP FAM Tour: May 1 -3, Dallas/Ft. Worth, targeting HQ’s,
consultants, consulates, prospects
•IAMC (Industrial Asset Management Council) Spring Forum: May
4-8, Santa Barbara, CA, consulting/real estate executives
•Indoor Ag-Con: May 22 -24, Las Vegas, greenhouse/indoor ag tech
•SelectUSA: June 10-12, Washington, D.C., International FDI
•IFT: June 2-5; New Orleans, food ingredient/technology
•CB Insights Future of Insurance/Banking: June 11-13, New York
City, insurance/banking/fintech
•World Congress of Industrial Biotechnology & BioProcessing:
July 8-11, Des Moines, IA, ag/industrial biotech
TRADESHOWS, CONFERENCES, AND EVENTS
MOVING FORWARD -2019
Tradeshows/Events Planned Aug.-Oct.
•MMP FAM Tour: Aug. 21-23, Chicago, HQ’s, consultants, consulates, prospects
•InterDrone: Sept. 5-7, Las Vegas, drone industry (removed)
•IAMC:Sept. 14-18, Milwaukee, consulting/real estate executives
•Advamed:Sept. 23-25, Boston, medical device mfg. tradeshow
•Pack Expo:Sept. 23-25, Las Vegas, packaging industry tradeshow
•WEFTEC: Sept. 23-25, Chicago, water processing industry (removed)
•Process Expo: Oct. 8-11, Chicago, process, packaging for food/beverage/pet
food mfg.
•Supply Side West: Oct. 15-19, Las Vegas, food ingredient tradeshow
•CoreNet:Oct. 20-22, Anaheim, CA, corporate real estate conference
•Money 20/20: Oct. 27-30, Las Vegas, fintech/payment start-up focus (replaced
Empire Fintech West Coast event)
Tradeshows/Events Planned Nov.-Dec.
•Fabtech :Nov. 11 -14, Chicago, fabrication
manufacturing tradeshow
•Medica:Nov. 18 -21, Dusseldorf, Germany, medical
device tradeshow
•MAEDC Competitiveness Conference:Dec. 8-10,
Chicago, economic development (TBD)
•Area Development Consultant Forum:Dec. 8-10,
Houston, site location consultants
MARKETING INITIATIVES
DEED/Explore Minnesota Video Project
•DEED’s Economic Development Division
partnered with Explore Minnesota Tourism
•2 ½-minute video features 3 entrepreneurs
who visited Minnesota and decided to invest:
Duluth: Markus Muller & Lara Signorelli, founders,
Tryon Media
Rochester: Joselyn Raymundo, president & founder,
Rochester Home Infusion
Minneapolis: Clarence Bethea, founder & CEO,
Upsie
Thriving in the North “Halo” Video
Here is the link to watch this video on YouTube: https://youtu.be/Cl6_87_3hZg
Geofencing at Chicago Food Expo
•Ads ran May 21-22 on
Facebook during the
National Restaurant
Association Show
•Targeted anyone within a
one-mile radius of
McCormick Place
Convention Center in
Chicago
Geofencing at Chicago Food Expo
•Results:
Ads viewed 20,575 times
by 12,960 people
50 clicks (took people to
DEED ED website
business location and
expansion page)
Cost: $809
Economic Development Website
•From July 31, 2018 through July 31, 2019,
DEED’s ED website,
CompareMN.com:
•80,000 pageviews
•62,500 unique
pageviews
•California, Illinois, Minnesota, Massachusetts
and England had the highest # of pageviews
Publications/National Articles
•Site Selection Magazine:
Editor Ron Starner wrote
“Minnesota Creates
Launchpad for Growing
Startups” for the magazine’s
web exclusive Trustbelt
report, July 2019
Magazine: MN Economic Development
•DEED has signed a contract with
Conway to produce the 2020
Minnesota ED magazine
•Ad sales have started; rates are
the same as last year
•7,500 polybagged copies to be
sent out with November 2019
Site Selection magazine
Magazine: MN Economic Development
•A link to the 2020 Media Kit
was sent out to MMP on July
30, and it will be in follow-up
email to this meeting
•You also can contact:
Paul Tarrants
Paul.Tarrants@comway.com
615.788.9555
Digital: ED Magazine Online Results
•A digital version of the current issue is at: siteselection.com/cc/Minnesota
•From November 2018 to July 16, 2019:
Digital edition: 11,196 pageviews
Articles and custom content landing page: 1,616 pageviews
•US-Midwest Japan Association/Korea
–Sept 6-12th, Tokyo and Seoul
•Minnesota Fintech Collective:
–Oct 11; St. Paul
•CoreNET Global/Midwest Chapter:
–Gold sponsorship
–Oct. 20-22; Anaheim, CA
Sponsorships
New: Opportunity Zones Property Search
Now find Opportunity Zones in the LocationOne Information
System (LOIS) map at: mn.gov/deed/sitesearch; in “Search,”
click on dropdown menu under “Specialty Features”
DEED also has more
information about
Opportunity Zones at:
mn.gov/deed/
opportunityzones
Recent Minnesota Rankings
•2019 CNBC America’s Top States for Business:
Highest in the Midwest and 7th overall
Ranked 11 times among Top 10 States for Business from 2007-2019, including 1st in 2015 and 3rd in 2017
3rd in Education; 3rd in Quality of Life
•Other recent 2019 rankings:
1st in Safest States in the U.S. (WalletHub)
2nd in Best States to Live In (WalletHub)
3rd in Best States (U.S. News & World Report)
Marketing Initiatives: Discussion Topics
•Press Tours
•Talent Attraction events
•Magazine/Website
•2020 FAM Tours
KYLLE JORDAN & JOHN SHOFFNER
BUSINESS DEVELOPMENT MANAGERS
BUSINESS DEVELOPMENT OFFICE
MINNESOTA DEPARTMENT OF EMPLOYMENT AND
ECONOMIC DEVELOPMENT
Post Mortem: Dallas/Ft. Worth FAM Tour
•May 1-3, 2019
Partners: WSB, Dakota Electric, St. Cloud, Rochester Area
Economic Development, Elk River and Fairmont + 2 DEED
staff
Included a total of 17 meetings
Each participant attended at least 5 meetings over 2 days
Meetings were with:
o site selectors
o private equity/venture firms (focused on medical devices and
other industries where Minnesota excels)
o Dallas-headquartered firms with Minnesota offices
Preview: Chicago FAM Tour
•Aug. 21-23, 2019
Partners: Greater Fargo Moorhead ED Corp., Fagen Inc.,
Burnsville, Elk River, Owatonna Partners for Economic
Development, Faribault, Rosemount, Greater Mankato
Growth
Luncheon will be held Thursday, Aug. 22 at Harry Caray’s;
32 guests have been invited
Meetings are planned with a broad range of businesses,
site selectors and strategic partners
TOM LAMBRECHT
MANAGER
ECONOMIC DEVELOPMENT SERVICES
GREAT RIVER ENERGY
MMP Structure and Future
•Quick recap of some April discussion points:
Each member must be a recognized entity
o A legitimate 990 Filer or business entity (LLC, LLP, C corp., S Corp)
o # of memberships per entity is still open for discussion
Planned changes per the advisory board:
o $700 annual dues, starting in calendar 2020
o Dues beyond 2020 will be point of future discussion
MMP Budget –Status and Changes
•Budget balance: @ $91,800 (after today’s
lunch)
•Planned changes per the advisory board:
Lunches will be $30/person moving forward –starting in
December 2019 (instead of this meeting). Average for all
meetings in 2017/18 was $37.89/person
Goal is not 100% cost recovery, but to preserve funds for
marketing activities and events
If members sign-up the day of the meeting (walk-ins), this
increases to $40
Members may attend without eating lunch
MMP Trimester Lunch Cost Example
•Lunch = $2,300 for 60 people, + $200 room +
$100 for AV = $2,600
•Assuming $30/head model, a lunch meeting
would only cost $800
•Lunch costs now: @ $8,000/year
•Lunch costs with $30 charge: @ $2,500/year
•Savings to put into other activities: $5,500/ year
MMP –What Do You Get For Your Dues
•Opportunity to leverage funds to promote Minnesota
and your region/community
•Your support allows us all to leverage limited funds
to participate in a higher value and higher profile
conferences/tradeshows and marketing avenues
•A voice in the direction and efforts of what/where
and how we market Minnesota
•Connectivity to marketing efforts
•Access to industry insights and speakers
MMP –How Do We Spend Our Budget
•Site Selectors Guild: multiple entities pooling
funds to have highest profile sponsorship
•Fam Tours –covers cost of events and
planning
•Tradeshow costs –example from SelectUSA
Costs for transport & set-up of the DEED booth
leveraged by the MMP are as follows:
•Skyline Shipping & Labor: $4,899
•MMP Partner sign: $310
•Drayage: $1,520
MMP –Structure and Future
•December meeting: Will discuss 2020 plans;
events and tradeshows; FAM Tours
•Want a diverse mix of industries; looking at
adding talent attraction
•You’re welcome to join the Advisory Board
•Co-chairs and rotating responsibility for
working with DEED to plan meetings
MMP Advisory Board Members
•Kim Lindquist –City of Rosemount
•Deanna Kuennen –City of Faribault
•Mike Humpal –City of Fairmont
•Ryan Nolander –RAEDI (Rochester)
•Jim Gromberg –WSB
•Leslie Dingmann –Greater St. Cloud Dev. Corp.
•Dan Pfeiffer –Xcel Energy
•Tom Lambrecht –Great River Energy
•Brian Hanson –APEX
•Joel Akason –Greater MSP
•Jo Iverson –DEED
STEVE GROVE
COMMISSIONER
MINNESOTA DEPARTMENT OF EMPLOYMENT AND
ECONOMIC DEVELOPMENT
Next Meeting
•Early December
•Date and location to be determined