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8.1. EDSR 10-21-2019 Request for Action To Item Number Economic Development Authority 8.1 Agenda Section Meeting Date Prepared by Work Session October 21, 2019 Amanda Othoudt, EDD Item Description Reviewed by EDA Strategic Plan DRAFT RFP Cal Portner, City Administrator Reviewed by Action Requested For discussion purposes only Background/Discussion At their July 15, 2019, special meeting, the EDA directed staff to develop a RFP for an EDA strategic plan. The strategic plan will build upon the EDA existing plans including the city’s vision, Mississippi Connections Plan, Comprehensive Plan, Parks and Recreation Plan, Capital Improvement Plan, and any other relevant studies that have set forth goals and objectives for economic growth and sustainability. The scope of the strategic plan includes the following components: 1. Facilitation of the visioning process 2. Community Assessment 3. Cluster, Location Quotient, Target Industry and Operational Analysis 4. Assessment of city’s economic development structure 5. Incentive Program 6. Existing Business Development 7. Tourism and Marketing Analysis 8. Land Use Analysis 9. Workforce Analysis/Development 10. Implementation Plan 11. Community Involvement 12. Meetings 13. Final Document Staff is seeking direction from the EDA on the content of the RFP, and any important considerations. Financial Impact N/A Attachments  EDA Strategic Plan RFP (Draft) The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Introduction City of Elk River Economic Development Authority (EDA) seeks sealed proposals for services to create an economic development strategic plan from consultants interested and qualified to perform such tasks. It is the intent of the EDA to select a single consultant to accomplish all the services outlined in this Request for Proposal. The EDA intends to commence a contract with the successful proposer within thirty (30) days from the date of the award and continuing for a period sufficient to complete the scope of work but no more than a twelve- (12) month period. It is understood that the EDA reserves the right to negotiate all elements that comprise the proposal and to accept or reject part or all of any proposal. Request for Proposal documents are available at the City of Elk River website at www.elkrivermn.gov and addendums if posted, will be provided at the same URL. Purpose The EDA is requesting proposals from potential consultants for the development of an economic development strategic plan. 1. Conduct meetings and community events with stakeholders and citizens to include any necessary presentations; 2. Evaluate strengths, weaknesses, opportunities and challenges regarding economic development; 3. Evaluate target industries and potential development areas; 4. Conduct necessary review of existing research, EDA and stakeholder master plans, regional strategic plans and existing relevant programs; 5. Conduct additional research as required to establish basis for SWOT analysis and targeted industry recommendations. 6. Prepare and present a final report to the EDA including new recommendations and implementation plans to attract target industries; 7. Identify the best method for organizing, funding and operating a superior city-wide economic development program; and 8. Identify key catalyst projects to impact economic development and present an implementation plan to the EDA regarding the same. These documents will build upon the EDA’s existing plans including the city’s vision, mission, Mississippi Connections Plan, Comprehensive Plan, Parks and Recreation Plan, Capital Improvement Plan, along with any other relevant studies that have set forth goals and objectives for economic growth and sustainability. Background The City of Elk River is located about 35 miles northwest of Minneapolis, MN and midway to St. Cloud at the confluence of the Elk and Mississippi Rivers. The city is served by US Highways 10 and 169, both gateways to Minnesota’s lakes regions. We are also served by State Highway 101 for easy access to Interstate 94. Elk River consists of 43 square miles with a population of 23,447. City Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity. Scope of Service The successful consultant has the responsibility to prepare an original strategic plan containing goals, objectives, implementation plans, and metrics. They will also provide meeting facilitation services, supporting materials and research, and social media services during the public outreach process as necessary. The consultant shall provide professional services to support the following tasks: Economic Development Vision and Strategic Plan: A) Facilitation of visioning process – specific to economic development to define and determine collective goals and priorities. B) Community Assessment, Workforce and Educational Institution Analysis - Analyze strengths, weaknesses, opportunities and threats of the local and regional economy. The review will include social, demographic, economic and physical factors, including but not limited to, the following: a. Existing and planned infrastructure; b. Residential housing growth and development; c. Existing economic base and competitive advantages; d. Local land and building availability; e. Locations for commercial and competitive assets; f. Special incentives for economic growth; g. Comparative analysis of benchmarks communities; and h. Evaluation of local and regional labor characteristics, market trends, employment development resources, and workforce training opportunities. C) Cluster, Location Quotient, Target Industry and Operational Analysis – Shall be provided to include identification of: a. Specific industries and business types that consider strengths, weaknesses, opportunities and thread constraints; b. Needed improvements and actions that will accelerate business attraction and recruitment of such development; c. State, federal or other programs programs that will be developed or implemented including but not limited to: entrepreneurial development, business incubation and strategies for any special new industries; d. The potential impact of events, venues and other tourist attractions on Elk River from surrounding areas and the impact of city events. e. The role of retail within the community and provide for a business diversification analysis. Determine the best practices to diversify the tax base to offset property tax and unpredictable sales tax collection due to a changing dynamic of the retail industry; and f. Existing local, regional and statewide economic development organizations to determine how best to leverage their resources. D) Assessment of city’s economic development structure and comparison to other economic development organizations. In areas of overall roles and responsibilities; organizational structure and funding; economic development tools utilized; role of expenditures on planned infrastructure on capital projects; and appropriate niche role in financially supporting economic development ventures, such as infrastructure development, tax incentives, property acquisition, and speculative construction to encourage target businesses/industries. E) Incentive program – Recommend an incentive policy and program to include: a. Incentives currently used in targeting preferred industries and businesses. b. The incentive policies of regional competitors. c. Feasibility of incentives for “green” initiatives, advanced technology initiatives. d. Feasibility of incentives for speculative development particular types of spaces such as office, industrial, start-up/co-working, entrepreneurial centers, etc. e. Approaches to promote mixed-use nodes for appropriate development. f. Approaches and incentives for development specific to downtown, infill, or other specifically identified target areas. F) Existing Business Development – Provide recommendations related to existing business development to include: a. Development of programs and services to assist and retain existing business. b. Analysis of existing business retention and expansion needs including any infill, redevelopment, “grayfield” and/or “brownfield” sites. c. Identify programs and services to assist existing businesses with growth and training. G) Tourism and Marketing Analysis – Analyze existing tourism-related events and attractions and provide recommendations related thereto. The consultant will analyze and provide and estimated economic impact for events that could be held within the City of Elk River, including the following types: concert series, food festival, sporting events, and community festivals, and provide recommendations for the EDA to fund key projects to aid timelier economic growth in the community. H) Land Use Analysis – Analyze existing land use plans and make recommendations to ensure that the available land is used for the highest and best use as it relates to the EDA’s long-term economic diversification and stability. I) Workforce Analysis/Development: Provide a community workforce analysis including: a. Analysis of the workforce employed in Elk River businesses who may or may not be community residents. b. Analysis of the workforce residents employed outside Elk River. c. Identify issues resulting in Elk River’s businesses’ inability to hire residents and residents’ inability to be employed in Elk River. d. Identify programs and services that will address the issues identified. J) Implementation Plan – In addition to any items mentioned above that identify strategies, approaches, or recommendations, the consultant will provide an implementation plan to include: a. Assessment of the resources, business attraction targets and existing employment base; b. Assessment of independent business/start-ups in the community; c. Identification of general training needed to improve the skills of the local workforce to meet existing and potential employment needs. d. Research of growth plans for regional educational institutions and vocational programs and the provision of strategies for ways to include graduates and non-graduates in the local workforce; e. Provide strategies for programs in areas such as green development opportunities, start-up businesses or incubation program, downtown business district to encourage particular types of development, retail, professional services, research and development, higher education and trade and distribution; f. Assess and provide strategies for business and industrial park development within city and surrounding areas that may impact Elk River’s economy, such as marketing existing and planned developments, and identification of potential future needs for locations, and speculative commercial building construction, including discussion of public-private partnership methodologies to achieve the same; g. Provide strategies for addressing any infill or redevelopment and any “brownfield” or “grayfield” sites with potential constraints. This should include discussion of funding approaches, public-private partnerships and other means not only to mitigate their effects but also to turn such sites into successful developments. h. Assess feasibility of development of Elk River as a convention and tourism destination, and provide strategies as appropriate for development of required assets such as hotels, multipurpose facility space, along with promotional themes and marketing activities to attract targeted industries. i. Incorporation of strategies into a 10-year economic development implementation plan that includes the provision of an immediate course of action and short-term, mid-term, and long-term action plans that include benchmarks, needed resources, timelines, goals and metrics with realistic and achievable milestones to facilitate the creation of implementation of recommended economic development program(s). j. Provision of budget and implementation schedule for economic development program(s). K) Community Involvement – A well-developed community and stakeholder involvement and outreach process, facilitated by the consultant, is an essential part of the strategic plan. The consultant will include facilitation techniques, marketing strategies including press outreach, website and social media efforts to both inform stakeholders and seek their input. Likewise, the consultant will conduct focus groups, public input meetings and interviews with the following: a. EDA and city government elected/appointed officials and staff b. Ad hoc Committees (if applicable) c. Stakeholder groups d. Citizens and property owners e. Current business owners, developers, realtors, and downtown merchants f. Chamber of Commerce members g. Education leaders (K-12, higher education) h. Special event organizers, both non-profit and for-profit L) Meetings – The consultant will conduct meetings as follows: a. Initial staff meetings for organizational, technical and substantive issues. b. Initial meetings with community representatives to discuss issues of concern. c. Ongoing review and discussion of drafts with city staff. d. Public input meetings to review issues and obtain general direction. e. Presentation of draft strategic plan components to the EDA. f. Presentation of draft strategic plan at public meetings and final adoption. M) Final Document Format – The successful consultant will provide one (1) original and twenty-five (25) copies of both the draft and final version of the Strategic Plan in hard copy, in electronic format acceptable to the EDA (i.e. .DOC, and .PDF), and web-ready electronic format acceptable to the EDA. The successful consultant will create all associated maps in a city-approved geographical information systems application. Maps and supporting documentation will be maintainable using current city software programs. All final map files will be presented in an Arc GIS shape file. Response to the RFP The following items are required in each proposal. In order to expedite the evaluation of proposals, proposers will organize their proposal in the same sequence. Instructions regarding scope and contents are given in this section. These instructions are designed to ensure the submission of information essential to the understanding and comprehensive evaluation of each proposal. Facsimile or email proposals will not be accepted. Proposals must contain a concise presentation of sufficient length to be complete. Brevity is appreciated when possible. All documents and attachments will be contained in a presentation folder or binder no larger than 8 ½ x 11. Proposals for “boilerplate” plans will not be acceptable. A. Cover Letter: A cover letter with company name, address, phone number, project contact and principal signature is required, expressing interest in the project and certifying that sufficient resources in personnel, equipment, and time are available and can be committed to this project. B. Work Plan: Explain the work plan with detailed specific tasks as noted in Scope of Service Section of this RFP. Note all tasks and the responsible parties including the EDA and sub-consultants. C. Project Schedule: A project schedule showing key task target dates (including community meetings, public meetings and staff team meetings) and estimated task duration. Given the planning duration of 12 months, the project schedule should include options for phased deliverables and programs implementation throughout the development of the strategic plan. D. Project Team: A resume for the principle of the firm along with a resume for the project manager. Provide primary contact, names and titles of employees and all sub consultant team members, partnering firms and their team members who will have responsibilities under the subsequent agreement. Provide a brief background on all participants to include professional work and areas of expertise. E. Relevant Experience and References: List projects of a similar nature with which the successful proposer has had direct experience. Be specific on why the referenced projects are similar to this project, and provide links to the completed plans of a similar nature/scope when appropriate. Also include at least one contract for each project (email and phone) that may be contacted as a reference. F. Quality Control: Describe how the successful consultant will handle quality control to monitor and resolve issues and check and cross-reference documents. G. Fees: Provide a list of fees for the entire scope of services with a total “not to exceed” amount listed for each item. Provide hourly rates for additional services as well as the costs for out-of- pocket expenses. Failure to address items A through G in the Response to the Request for Proposals section in detail will be sufficient reason to eliminate a proposal from consideration. Award of Contract Negotiations: After selection of a consultant based on qualifications, the city will then enter into negotiations as to the terms of the contract, all aspects of services and the compensation to be paid to the consultant. Inability to reach agreement: In the event the negotiations between the most qualified consultant(s) selected and the city cannot be completed as a result of an inability to reach agreement on the fee for services or the scope of work to be performed, then at the option of the city, the contract may be awarded to the next most qualified consultant. Negotiations will continue in this sequence until a contract is finalized or all proposals are rejected. City Approval: The final contract will be submitted to the EDA for approval, and must also be approved by the City Council. Final Contract The selected consultant will be required to assume responsibility for all services offered in its proposal and will be considered the sole point of contact with regard to contractual matters, including payment of any and all charges resulting from the contract. The selected consultant will be required to enter into a standard contract for professional services agreement with the city. The city reserves the right to negotiate the terms and conditions of the contract with the selected consultant. SUBMISSION OF PROPOSAL & DEADLINE Submit one (1) original, six (8) copies and a thumb drive as a PDF file of the proposal to the city office no later than 4:00 p.m. XXXXXXX in a sealed envelope to: Attn: Economic Development Director City of Elk River 13065 Orono Parkway Elk River, MN 55330 Each proposal must be sealed and signed by a person having the authority to bind the consulting firm in a contract. All proposals must be signed and dated. Proposals not signed and dated will be rejected. Schedule of Important Dates Release of RFP XXXXXX Deadline for Written Questions and Inquiries XXXXXX Proposal Submission Deadline XXXXXX Interviews with shortlisted firms XXXXXX