7.2. EDSR 09-16-2019 Request for Action
To Item Number
Economic Development Authority 7.2
Agenda Section Meeting Date Prepared by
General Business September 16, 2019 Colleen Eddy, Economic Development Specialist
Item Description Reviewed by
FAM Tour Update Amanda Othoudt, ED Director
Reviewed by
Cal Portner, City Administrator
Action Requested
Item presented for informational purpose.
Background/Discussion
2019 FAM Tour – Chicago
I attended a Familiarization (FAM) tour in Chicago with representatives from DEED and other
economic developers from around the state. We attended six visits during the two and a half days along
with a lunch hosted by DEED and attended by several site selectors and representatives from various
consulates. As DEED hosted a FAM tour last year to Chicago which focused on meeting site selectors,
this year they opted to visit with venture and private equity firms along with site selectors.
Virtual General Counsel – Met with James Interlandi, Principal and Chief Counsel
Team: John Shoffner (DEED), Jane Connell (Fagen Inc.), Ryan Aasheim (Fargo/Moorhead),
John Considine III (Mankato), and Colleen Eddy (Elk River)
Virtual General Counsel prides itself on having sophisticated services with a boutique feel. Jim founded
the company after gaining invaluable experience with some large and respected law firms. His areas of
focus are on contract drafting and negotiation, digital privacy and security, product distribution and
channel development, service industries, information, network and telecommunications. He strives to
cultivate a close, friendly, and trusting relationship with each client and strongly believes in deep
intellectual engagement for each client, each project and each challenge. What I found and was interesting
is Jim’s overall goal is to help entrepreneurs succeed no matter what. Jim is interested in presenting at a
MMP meeting in the future and taking a site tour of MN.
Biggins Lacy Shapiro & Company, LLC. – Met with Kyle Syers, Senior Consultant
Team: John Shoffner (DEED), Jane Connell (Fagen Inc.), Ryan Aasheim (Fargo/Moorhead),
John Considine III ( Mankato), and Colleen Eddy (Elk River)
Biggins Lacy Shapiro creates value for clients through Location Economics. They help some of the
world’s largest corporations identify the locations, secure incentives, obtain development approvals and
optimize energy strategies. They represent clients in industries across North America. Kyle stated that
Biggins Lacy Shapiro does not do many projects in MN, but did not know really why that was. The team
reiterated available financial incentives offered through the state and on the local levels. I highlighted Elk
River’s available lots and our various microloan programs. Kyle stated his focus is on automotive and
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
general manufacturing, FinTech and life science. He deals with locating HQ’s. Kyle will keep MN in
mind for future projects! It was encouraging to get MN back on their radar.
CBRE – Met with Alex Frei, Senior Vice President and Spencer Donahue, Compliance Analyst
Team: John Shoffner( DEED), Kevin McKinnon (DEED), Kim Lindquist (Rosemount), Regina
Dean (Burnsville), Greg Kruschke (Owatonna), and Colleen Eddy (Elk River)
CBRE, is the preeminent commercial real estate firm in Chicago. They provide a full range of real estate
services meeting a broad range of client’s needs, including site selection, lease negotiation, building
management, valuation and more. Their clients span industries and range in size, Fortune 500
corporations with global reach to local nonprofit institutions and emerging growth companies.
The State of MN (DEED) has worked with CBRE on several projects so they were quite familiar with
the state and its financial incentives and its tax credits/rebates. Alex stressed that the most important
criteria that site selectors he works with want, is a renewable energy source. This tops the list followed by
workforce, incentives, and regulatory requirements/permitting. I shared information on our available lots
and local incentives.
EY (Ernst & Young) – Met with Joseph Christofanelli, Location Investment Services; Tricia
Ruffolo, Credits and Incentives; and Suzanne Mills, Credit and Incentives
Team: John Shoffner (DEED), Kim Lindquist (Rosemount), Regina Dean (Burnsville), Greg
Kruschke ( Owatonna) and Colleen Eddy (Elk River)
EY’s purpose is Building a better working world. The insights and quality services they provide help build
trust and confidence in the capital markets and in economies the world over. Joe stated that their biggest
client in MN is Cargill. The group we met with focused on incentives, which I spoke about our local
financial incentives, available lots and the corridor of commerce grant the city received. Joe stated the
most important criteria that site selectors he works with want, is incentives and responsiveness!
Szatan & Associates – Met with Jerry Szatan, Principal
Team: Dave Heyer (DEED), Greg Kruschke (Owatonna), John Considine III (Mankato) and
Colleen Eddy (Elk River)
Discussion focused on past projects that Jerry worked on in Minnesota. Jerry is mostly retired and is now
focusing on presenting at various venues on his experience and knowledge. He is a founding member
and past-president of the Site Selectors Guild. Jerry elaborated on some areas such as labor market
analysis, community assets and the importance of identifying targeted industries for communities.
Sandalphon Capital – Met with Jonathan Ellis, Founder and Managing Director
Team: Dave Heyer (DEED) and Colleen Eddy (Elk River)
Sandalphon Capital is a venture capital firm focused on Seed and Series A round start-ups. Their main
focus is funding IofT and FinTech start-ups. Jonathan is very familiar with the Minnesota market and has
attended MN Start-up week in the past and is planning on attending this year’s event. They look for
scalable projects with investment needs of up to $250 million. The team shared information on the
Initiative Foundation and the Angel Tax Credit and available tax incentives on the local level. Jonathan
was interested in re-connecting during his visit to MN in October and seemed interested in getting
connected with GreaterMSP.
Conversed with Tsubasa Hasimoto, Director of Public Affairs at the Japan External Trade Organization
during the DEED hosted luncheon. Tsubasa was quite familiar with MN as he worked on the U.S. Water
facility located in St. Michael, MN. He is interested in taking a site tour of Elk River and other
communities he met with during the luncheon.
Financial Impact
Included in the 2019 Advertising and Marketing Budget
Attachments
FAM Tour brochure
FAMILIARIZATIO N T OUR
C H IC AGO, IL2019 FAM TOUR
AUGUST 21-23, 2019
Many factors contribute to the health of a state’s economy – quality of talent, diversity of
industry, stability of the business climate and overall culture. Minnesota continues to excel
in economic growth, quality of life and factors that allow our citizens to prosper.
LET’S GET DOWN TO BUSINESS
Minnesota has the third best five-year survival rate for new businesses (Bureau of
Labor Statistics, 2013-2018). Why? A strong business ecosystem, stable policies
and strategies across a spectrum of resources to nurture and grow business. We grow
businesses and we grow them big. We have 17 Fortune 500 headquartered companies,
including familiar names such as 3M, Target, and General Mills.
Minnesota has been ranked 11 times among the Top 10 States for Business by CNBC
between 2007-2019, including 1st in 2015 and 3rd in 2017.
We are fortunate to have a diverse economy – from aerospace, agriculture, mining,
medical devices, and health care technology to fintech, data centers, and composite
materials to next generation sensors, advanced glass technology, and retail technology.
This diversity allows stability and strength that provides our businesses the opportunity
for growth and collaboration and that gives our talented workforce career choices – so
they can stay in Minnesota and thrive.
The backbone of this success is not based on one asset, but multiple interconnected
advantages in education, infrastructure, talent, financial stability and quality of life.
Our education system consistently ranks among the best in the U.S. for quality and
output of talent; we rank third in education (CNBC, 2019) and are tied for first in the
percentage of people with high school degrees. We are blessed with the best airport
(MSP International) of its size in North America (identified by the OAG Aviation
Group, Air Transportation Research Society and Airports Council International). Our
state budgets are sound and balanced (and have been for 11 years), and Minnesota is
ranked among the top three states in Quality of Life by U.S. News & World Report,
Forbes, and CNBC.
These combined factors generate an environment and ecosystem that offer businesses
the best chance to succeed. We welcome the opportunity to assist you and your clients
in the growth of their businesses.
Minnesota has been ranked 11 times among the Top 10 States for Business
by CNBC between 2007-2019, including 1st in 2015 and 3rd in 2017.
AUGUST 21-23, 2019
participating organizations
3
City of Burnsville
100 Civic Center Parkway
Burnsville, MN 55337
Regina Dean
952-895-4453 | Regina.Dean@Burnsvillemn.gov
The City of Burnsville has a population of 60,000 residents, 2,500 local businesses
with a skilled and diverse workforce, easy freeway access to I-35W & I-35E, and is
home to 3 future Bus Rapid Transit stations. Amenities include Buck Hill, the Ames
Center (performing arts and entertainment), friendly neighborhoods, downtown
skyline and river views, 75 parks, sidewalks and trails. Burnsville is home to an
opportunity rich environment for all and 15 minutes from Minneapolis, St. Paul
and the MSP Airport. Bolstering this rich environment, learn about the Burnsville
Center Village which envisions a new mixed use neighborhood with vibrant parks,
new hotels, and entrepreneurial spaces. See how you can thrive in Burnsville at www.
burnsvillemn.gov.
City of elk river
13065 Orono Parkway
Elk River, MN 55330
Colleen Eddy
763.635.1041 | Ceddy@ElkRiverMN.gov
Elk River is a place where two beautiful rivers converge, located 35 miles northwest
of the Twin Cities. Home to an acclaimed school district, hundreds of acres of parks
and trails, not to mention an abundance of city services and programs, quality of life
is second to none. City leaders understand the importance of cultivating a dynamic
economic environment, which is why Elk River is one of the fastest growing
communities in central Minnesota, offering a highly educated and skilled workforce.
Over 50 manufacturing facilities, two Fortune 50 data centers, and a variety of
retail/service businesses make up Elk River’s flourishing business community. Elk
River has plenty of room to grow, and being halfway to lake country doesn’t hurt
either.
3MINNESOTA
participating organizations
4
City of fariBault
208 NW 1st Avenue
Faribault, MN 55021
Sam Markman
507-333-0388 | smarkman@ci.faribault.mn.us
The City of Faribault, awarded 2019 City of the Year by the Minnesota Real Estate
Journal, is your location for projects of all sizes and scope. Strategically located
along Interstate 35, Faribault is only 30 minutes from the Twin Cities Metro,
and has available land for industrial growth. Due to the geographic proximity to
a number of regional population centers, Faribault’s growing population provides
an unmatched pool of talent. A proven “hot-spot” for distribution, business
development, and foreign direct investment – including: Sage Glass, Daikin Applied,
Faribault Foods, and Aldi Distribution. Faribault prides itself on being able to deliver
the most complex of projects in a timely manner that meets the needs for all
project partners.
City of rosemount
2875 145th Street West
Rosemount, MN 55068
Kim Lindquist
651-322-2090 | kim.lindquist@ci.rosemount.mn.us
Rosemount is located in Dakota County, a southeastern suburb in the Minneapolis/
St. Paul metropolitan area, with a population of almost 25,000. It is a pro-growth
community with plenty of land available for new construction. Over 800 acres are
identified for new light industrial and business park uses. Additionally, there is a
lot of land for residential development; in the last decade Rosemount’s population
grew by 50% and is projected to increase by another 90% to 42,000 by the
year 2030. Rosemount has a high median income relative to the state average, a
highly educated workforce with 39% of its residents holding college degrees, and
the fourth highest median house value compared to all cities in Dakota County.
The City Council has prioritized its work to include business employment growth,
assisting in redevelopment of the historic Downtown, and installation of quality
regional infrastructure.
AUGUST 21-23, 2019
participating organizations
5
fagen inC.
501 Hwy 212 W
PO Box 159
Granite Falls, MN 56241
Jane Connell
320.564.5206 | jconnell@fageninc.com
Fagen, Inc. is a premier, full service EPC contractor headquartered in Granite Falls,
MN. Established in 1988, this family owned company provides construction services
in civil, structural, mechanical, electrical, instrumentation, insulation, rigging,
millwright and equipment setting. As the largest merit shop contractor in the
Midwest, we have the resources to manage any size project and are licensed in all
50 states. Fagen, Inc. has no corporate debt, a strong balance sheet, and a bonding
capacity of $1.5 billion. Safety is our top priority on every project, as evidenced by
our excellent safety statistics. Our goal is to make sure our client s project crosses
the finish line safely, on time, within budget and with quality craftsmanship.
greater fargo moorhead eConomiC development Corporation
51 Broadway, Suite 500
Fargo, ND 58102
Ryan Aasheim
701-364-1919 | raasheim@fmedc.com
The Greater Fargo Moorhead Economic Development Corporation (GFMEDC) is
a catalyst for economic growth and prosperity. Using a comprehensive approach to
economic development, the GFMEDC accelerates job and wealth creation in Cass
County, North Dakota and Clay County, Minnesota.
5MINNESOTA
participating organizations
6
greater mankato growth
3 Civic Center Plaza, Suite 100
Mankato, MN 56001
John Considine III
507-385-6649 | jconsidine@greatermankato.com
Greater Mankato Growth, Inc. exists to intentionally develop the regional center by
promoting, supporting and serving as a catalyst for economic development through:
business growth and development; talent growth, retention and attraction; regional
livability and advocacy of the marketplace in and around Blue Earth and Nicollet
counties.
owatonna partners for eConomiC development / City of owatonna
540 West Hills Circle
Attn: Community Development
Owatonna, MN 55060
Greg Kruschke
507-774-7317 | greg.kruschke@ci.owatonna.mn.us
Owatonna, MN is a regional center, home to 25,000+ residents, 50 industries,
550 retail and professional services, supported by 21,000 workers and is location
rich by I-35 and US 14. It is noteworthy that the City is largest industrial park
land owner, an advantage that streamlines purchase and negotiations to the end
user. Owatonna Partners for Economic Development builds on the strengths
of 5 organizations to meet the economic development needs of existing and
locating businesses. They focus efforts in the fields of industry, retail, service,
medical and technology through an active properties/land list, physical building
space for start-ups, & offers reliable utility services and continued growth.
OwatonnaDevelopment.com
CompareMN.com
CANADA
WISCONSINNORTH DAKOTASOUTH DAKOTALake Superior
COMMERCIAL AIRPORTS RAILROAD LINESMISSISSIPPI RIVERINTERSTATE HIGHWAYS
INTERNATIONAL FALLS
DULUTH
FOREIGN TRADE ZONES
MINNEAPOLIS/ST. PAUL
Thief River Falls
Bemidji Hibbing
Brainerd
St. Cloud
Rochester
La Crosse, Wis.
Sioux Falls,
S.D.
Fargo, N.D.
Grand Forks, N.D.
Albert Lea
Austin
Alexandria
Faribault
Mankato
Marshall
Fergus Falls
Detroit LakesMoorhead
Becker
Owatonna
Elk River
PORT OF DULUTH
PORT OF TWO HARBORS
PORT OF
TACONITE HARBOR
PORT OF WINONA
PORT OF RED WING
PORT OF ST. PAUL
PORT OF SAVAGE
PORT OF SILVER BAY
COMMERCIAL PORTS
Roseau
Willmar
Worthington
Minnesota Department of Employment and Economic Development
Business Development Office | 651-259-7432 | Economic.Development@state.mn.us