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3. EDSR 06-03-2020 Elk Request for Action River To Item Number Economic Development Authori 3. Agenda Section Meeting Date Prepared by Work SessionJune 3, 2020 Colleen Eddy, Economic Development Specialist Item Description Reviewed by EDA Strategic Plan Update Amanda Othoudt,ED Director Reviewed by Cal Portner, City Administrator Action Requested For discussion purposes only. Background/Discussion At their April 20, 2020, meeting,the EDA approved a contract with Stantec Consulting Services, Inc. to proceed forward with the EDA Strategic Plan. On May 18, 2020, the EDA held a kick-off meeting with Tom Leighton,Economic Development Specialist, Senior Urban Planner from Stantec Consulting Services, Inc. who provided an update and discussed next steps. The EDA directed staff to schedule their first work session focused on Elk River economic development opportunities. Financial Impact N/A Attachments ■ Elk River Economic Assets Deterrents Threats ■ Economic Development Topics ■ Elk River Economic Context Map The Elk River Vision A welcoming community with revolutionary and pirited resourcefulness,exceptional service,and community engagement that encourages and inspires prosperity P 0 w E H E D 0 Y ItAIAT_ IJR Elk River Economic Assets, Deterrents, Threats Utility, Electric Reliability Land Affordability Traffic Volumes Support Retail Businesses Quality of Life Amenities: Parks, Downtown, Events Attraction -ERX Motor Park On the Way to/from Up North Regional Destination Retail Center NorthstarCommuter Rail Housing is Affordable Highly Rated School District Industrial Land Availability Physical Barriers – Railroad, Hwy 169, Hwy 10 Enough Housing Options? 169 Redefine Project Transportation Proximity to Mpls, St. Cloud Manufacturing Base/ Ecosystem Employment Destination (Job-rich) Elk River Economic Development Topics Elk River Existing Conditions EDA Existing Activity What is the Opportunity for Elk River? 1. Industry Clusters Elk River has existing industry clusters, particularly in manufacturing. In some cases they are economic ecosystems with product flows between local companies. Some offer high paying salaries, such as aerospace and medical device manufacturing. The City has identified four target industries-- manufacturing, data centers, energy, and medical devices. The EDA targets some of its financial resources toward the target industries, and its promotional materials and activities are carried out with a focus on the target industries. To reconsider what industry clusters should be targeted in the future, and identify incentives to support their attraction, in order to make good use of staff time and to market Elk River more effectively. 2. Land Availability for Business Attraction There are 2 business parks with land availability – Natures Edge and Northstar Business Park. Four new facilities have been built since 2010 – Powder Coating in 2014, Sportech in 2016, GATR Trucking, Inc, in 2016, and Morrell Trucking in 2016. Business expansions have also occurred. Most of the suitable land for new business development is in private ownership. EDA markets the City's business parks through the creation and distribution of marketing materials, communication with site selectors, and trade show attendance. Incentives are made available for new business attraction when warranted. To assess the sufficiency of the land suitable for new business development. To evalute and consider models for improving land availability when business recruitment or expansion opportunities occur. 3. BR&E Elk River has around 1,300 existing businesses, according to Reference USA data. They range in size from sole proprietorships to 500 employees. EDA staff conducted 26 BR&E visits in 2019, utilizing a Greater MSP and GROW MN survey format. To consider modifications to the format of the BR&E program, to its follow-up practices, and to the menu of services and resources that are available to respond to identified business 4. Catalyst Projects Active Elk River, funded by a local option sales tax, is underway to enhance parks, trails and recreational facilities in Elk River. The 169 Redefine project will rebuild the Highway 169/Hwy 10 interchange, and will reconstruct Hwy 169 and its interchanges from Main Street to 197th Avenue. The EDA isn't playing a lead role in the Active Elk River and 169 Redefine projects. It would play an important role in future catalyst projects that include a commercial or industrial element. To identify and advance high quality futures at locations with catalytic potential such as at the Tiller-Barton gravel mining area, the Great River Energy property, the Saxon Ford site, Main and Gates, and downtown Elk River. 5. Redevelopment Elk River proactively factilitates redevelopment in suitable locations. Redevelopment projects are often facilitated by Elk River's Housing & Redevelopment Authority. The EDA can play a role in redevelopment projects that include a commercial or industrial element. To explore and enhance the EDA's funding approaches, public-private partnerships and other redevelopment tools and resources in order to foster a) redevelopment of desired development types such as office, industrial, start-up/co-working, entrepreneurial centers, and mixed use nodes; b) redevelopment in target locations, such as downtown Elk River; c) redevelopment of "brownfield” or “greyfield” sites, or other properties that have a blighting effect on surrounding development or property Elk River Economic Development Topics Elk River Existing Conditions EDA Existing Activity What is the Opportunity for Elk River? 6. Tourism, Marketing ERX Motor Park draws 30,000 participants and fans annually. City events include the weekly Farmers Market with live music, the Riverfront Concert Series, Entertainment in the Park, and the annual Elk River Fest. EDA programs and staff support the marketing of Elk River to businesses, business organizations and site selectors--touting its assets and events. To identify opportunities for expanding the occurrence and impact of events such as concert series, food festival, sporting events, and community festivals. To assess the feasibility of Elk River becoming a convention and tourism destination. 7. Retail Vibrancy Elk River has a vibrant, walkable downtown area, and offers regular events that draw shoppers and visitors. Other Elk River retail areas offer a broad range of goods and services for residents and destination shoppers. The EDA owns land that is availability for retail commercial. It manages the COVID Emergency Small Business Microloan program, many of the recipients of which are retail businesses. It manages the "Together Elk River" program, which encourages Elk River residents to buy local to support Elk River retail businesses. To evaluate and enhance the vibrancy of pedestrian oriented retail areas. To position Together Elk River as an ongoing "Buy Local" program. To identify targets for retail recruitment through evaluating the array of Elk River retail offerings and identifying gaps in the good and services that are available. 8. Workforce Development Elk River businesses employ around 9,400 workers. About 1 in 4 of those workers are Elk River residents. Local employers utilize established and tailored programs from Anoka Technical College, St Cloud Technical College, and other workforce development providers, as well as internal training programs, to bring employees skills into alignment with company needs. The adequacy of employee skills, and the training needs of the business are points of discussion in every BR&E visit conducted by EDA staff. A staff member of ISD 728 accompanies EDA staff on those visits, and can speak to the availability of training resources, as well as internship and mentorship opportunities with high school students. To improve the hiring of Elk River residents by Elk River business through consideration of incentives such as employer assisted housing. To assess the need and opportunity for additional training resources for local businesses. 9. Incentive Policies The EDA administers a microloan program, with 4 loans out currently totaling $800,000. It encompasses five different subprograms with different requirements and maximum loan amounts. They are Industrial Incentive Loan, Downtown Revitalization Financing Loan, Energy Efficiency Improvement Loan, Microbrewery Loan, and the newly adopted COVID-19 Small Business Emergency Microloan program. The new Energy Incentive Program offers reduced electricity costs for two years for new facilities or expansions. The EDA is administering a DEED Jobs Incentive loan of around $100,000. The EDA has utilized tax abatement to support certain development projects, with the participation of Sherburne County. It has also utilized tax increment financing for one To adopt modifications or additions to EDA incentive programs in order to advance business development and other important City goals as noted above. Great River Energy Commuter Rail Station Woodland Trails Park New Industrial Since 2000 3 miles to ERX Motor Park/ Gravel Mine Elk RiverEconomic Context Map