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7.3. EDSR 09-21-2020 ��i City of Elk ' Request for Action River To Item Number Economic Development Authori 7.3 Agenda Section Meeting Date Prepared by General Business September 21, 2020 Amanda Othoudt,EDD Item Description Reviewed by 2021 EDA Budget and Resolution Establishing Lori Ziemer,Finance Director EDA Levy Reviewed by Cal Portner, City Administrator Action Requested 1. Review and approve the 2021 EDA Budget as presented. 2. Approve,by motion,a resolution establishing the EDA Tax Levy for collection in year 2021. Following the EDA's action,the City Council must approve and certify the EDA levy to Sherburne County by September 30, 2020. Background/Discussion At the July 15, 2020, Special Budget Workshop, the EDA reviewed the performance measures/goals and budget for 2021. The Commission directed staff to quantify the return on investments for conferences and schools and provide more information on the wetland bank and drone footage. Revenues The state maximum EDA tax levy is 0.01813% of estimated market value. In 2019, the budget represented a balance rate of approx. 0.0113%. The budget proposes a tax levy of$363,150, or 0.0133% of the preliminary$2,721,937,400 estimated market value in spring. In addition to the tax levy,we also calculate interest income of$3,000 and $3,500 transfer from the HRA for supplies and shared costs. Expenditures The proposed expenditures address several of the goals outlined in recent EDA discussion,and the future completion of the EDA Strategic Plan with Stantec Consulting, Inc. Major initiatives from these documents include: ■ Market the City of Elk River and gain positive exposure for the city. ■ Grow and maintain an inventory of private and public properties available for future development. ■ Maintain financial incentives to enhance economic development. ■ Celebrate and grow our existing businesses. ■ Develop and expand a microloan program to encourage new green collar jobs. ■ Increase the number of companies actively manufacturing products or components of products directly or indirectly used in renewable energy or energy efficiency by 2024. ■ Proactively work with the business community impacted by the 169 Redefine project. The Elk River Vision A wel-oming community nvith revolutionary and spirited resourcefulness, exceptional service, and p Q w E A E o s r community engagement that encourages and inspires prosperity /` UR ■ Begin implementation of the EDA Strategic Plan. DRONE FOOTAGE On August 17, 2020, the EDA directed staff to present further information on the proposed drone footage and site virtualization project. This project will offer the opportunity to showcase Elk River with drone footage video; showcasing the accessibility, community engagement/events,downtown,and other establishments that sets Elk River apart from other communities. Along with the drone footage, the video offers an interactive piece which allows visitors the opportunity to engage in the following activities for the various EDA available lots, the Sherburne County shovel ready site,and other future industrial sites: ROI: This video will be located on the EDA website for developers, site selectors,businesses,to access it any time day or night. The video can be a stand-alone feature during COVID-19 when travel is limited, and it can also be part of the marketing toolbox when travel is back to normal. Staff will be able to access this via our website and help narrate the video and its features with site selectors at FAM tours and other trade shows/conferences. SUMMARY The proposed budget accounts for a slight decrease in expenditures for office supplies. An increase telephone, postage, conferences and schools, advertising and marketing,publishing,insurance, and dues and subscriptions. An allocation of$10,000 is proposed for the Together Elk River CaVaign. Based upon discussions at the May 18, 2020, special meeting, $10,000 is allocated for incentives and rebates promoting Energy City. A new allocation in advertising and marketing of$2,000 is budgeted to showcase available industrial and commercial sites utilizing drone footage. Cost savings of$8,000 may be realized in 2021 to fund the $10,000 project cost. Staff proposes $45,000 towards the wetland credit bank which is a shared initiative between the EDA and the Environmental Divisions, allocating$3,000 to the Initiative Foundation and$5,000 toward Public Art. Any unspent funds remaining at the end of the year stay in the EDA fund for future economic development purposes/projects. If a non-budget item comes up in 2021,we can use the fund balance and make a budget amendment. Financial Impact The 2021 expenditure budget is $369,650. Attachments ■ August 17, 2020, EDA Budget Staff Report ■ 2021 EDA Budget/Goals ■ Resolution ■ Drone Proposal from WSB 0 Wetland Banking Presentation The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Economic Development Authority Item Number 7.5 Agenda Section General Business Meeting Date August 17, 2020 Prepared by Amanda Othoudt, EDD Item Description 2021 EDA Budget and Resolution Establishing EDA Levy Reviewed by Lori Ziemer, Finance Director Reviewed by Cal Portner, City Administrator Action Requested 1. Review and approve the 2021 EDA Budget as presented. 2. Approve, by motion, a resolution establishing the EDA Tax Levy for collection in year 2021. Following the EDA’s action, the City Council must approve and certify the EDA levy to Sherburne County by September 21, 2020. Background/Discussion At the July 15, 2020, Special Budget Workshop, the EDA reviewed the performance measures/goals and budget for 2021. The Commission directed staff to quantify the return on investments for conferences and schools and provide more information on the wetland bank and drone footage. Revenues The state maximum EDA tax levy is 0.01813% of estimated market value. In 2019, the budget represented a balance rate of approx. 0.0113%. Revenues estimated from the EDA tax levy are based on the estimated market value, which is not yet available from Sherburne County, and is expected to generate revenue of $363,150. In addition to the tax levy, we also calculate interest income of $3,000 and $3,500 transfer from the HRA for supplies and shared costs. Expenditures The proposed expenditures address several of the goals outlined in recent EDA discussion, and the future completion of the EDA Strategic Plan with Stantec Consulting, Inc. CONFERENCES: Economic Development Association of MN (EDAM) EDAM is the state’s largest membership organization of Economic Development professionals. Summer and Winter Conferences focus on professional development and provides networking opportunities with economic development professionals, consultants, engineers and the like. By sponsoring this event, we can highlight Elk River and our amenities during our introductions to the keynote Speakers. ROI: Education, Personal Development and Networking with Economic Development professionals. One site visit was generated from the conference by McGough Construction in 2019. International Economic Development Council – Annual Conference & Training IEDC is the world's largest membership organization serving the economic development profession. From public to private, rural to urban, and local to international, members represent the entire range of economic development experience. Program offerings focus on building strong, sustainable communities providing innovative strategies, tools, and techniques. Their programs provide educational opportunities, analyze and disseminate information, and improve decision-makers' responsiveness to economic development needs. IEDC offers the Certified Economic Developer accreditation, which is globally recognized. ROI: Education, Personal Development and Networking with Economic Development professionals. Elk River Area Chamber of Commerce events Annual Lunch, BRE Visits, The Elk River Area Chamber of Commerce aims to energize local business through promoting, advocating, connecting, and education. They provide essential business resources, build partnerships, and actively promote their members. If there is something that needs to be done to support local businesses, the Elk River Area Chamber of Commerce will be there to help. ROI: Positive exposure for the City of Elk River and Economic Development Authority representing the business community. Collaboration with the Chamber and the EDA’s through our scheduled BR&E visits. MN Real Estate Journal Events The MN Real Estate Journal focuses on the Commercial Real Estate Industry in the Midwest. They host a series of conferences every month to educate industry professionals. Staff has attended, participated in panel discussions, and sponsored several of the conferences focusing around our targeted industries. ROI: In 2019, one lead was generated for a Multi-Family project. Conferences were not held in 2020 due to COVID. MNCREW MNCREW is dedicated to transforming the commercial real estate industry by advancing women globally. CREW Network’s membership of 12,000 professionals in over 75 major global markets represents all aspects of commercial real estate, providing staff with direct access to real estate professionals across all geographies and disciplines. ROI: Direct access to brokers and realtors and personal development. Central MN Manufacturers Association The Central Minnesota Manufacturers Association (CMMA) exists for the primary purpose of contributing to the growth and success of manufacturers. Informal networking and breakfast, followed by a brief business meeting, a guest speaker and a tour of a manufacturing facility. CMMA is affiliated with a central office known as Midwest Manufacturers’ Association. Staff attends quarterly meetings to discuss innovative solutions to workforce development, grant programs, and talk with educators in the industry. ROI: Information learned from the networking events, enabled staff to work with ISD 728 to support a grant application for the Youth Skills Training Program (YST). In 2019, ISD 728 was awarded the Youth Skills Training (YST) grant through the Minnesota Department of Labor and Industry (DLI) for $95,000. Baker Tilly Baker Tilly is the EDA’s financial consultant. They provide financial review of TIF and Abatement applications. Staff attends their annual conference to learn about new trends in the market and stay up to speed on changes to TIF and Abatement policy. ROI: Preparing financial review of public financing applications, education and personal development. Site Selector Guild Staff attended the Site Selector Guild Conference this week with our representatives from DEED, City of Becker, Greater MSP, GRE, Xcel, and APEX. As part of our sponsorship, our delegation hosted a lunch with 12 guild members who work specifically in Minnesota. Everyone had an opportunity to pitch their community to the consultants and create a dialect of questions and good conversations about the amenities of our region. ROI: In 2018, one lead was generated by the SSG conference, staff responded to an RFI for an existing building in Elk River. One lead came from the SSG conference in 2019, staff responded to an RFI to which the project was put on hold due to COVID. The conference has generated positive exposure for the city. Economix This event is a blending of economic development professionals, coming together to stir additional insights and practical tools to enhance work in their respective communities. The event features over 24 top site consultants from around the globe and attended round table discussions. The round table discussions are meant to obtain one-on-one time with the consultants so they can learn about your community and what you have to offer. We have developed great relationships with many of the consultants over the years of attending events like these. ROI: In 2019, one lead was generated by the SSG conference on a data center project, staff responded to the RFI. This is a pipeline project. The conference has generated positive exposure for the city. Mid-America Economic Development Council (MAEDC) MAEDC offers two conferences a year. The Best Practices Conference, which is rotated between the 13 states, offers best practices and case studies from the hosting state. The Competitive Conference is held in Chicago and offers panel and roundtable discussions with site selectors. The Mid-America Economic Development Council is an organization that provides economic development professionals with the following:  Resources aimed at helping the economic development professional to excel.  Recognition of quality economic development programs and marketing.  Awards programs to reward excellence.  Promotion of the 13-state region to site selectors and industries to help raise the level of awareness.  Networking opportunities among regional members to promote idea exchange and partnering. ROI: Professional Development, networking with economic development professionals from the 13-state region. A data center lead was generated from this event. Staff collaborated with the Golden Shovel Agency, our website developer, at the 2014 MAEDC conference. Colleen is in her second term on the board and has hosted a roundtable discussion during the 2019 Competitive Conference. WETLAND BANK Wetlands in Minnesota are protected by the Wetland Conservation Act which regulates fill, drain and excavation. When land development happens, there are situations where wetlands may be filled in order to meet the needs of a project. These filled wetlands must be replaced at a 2:1 ratio with existing wetland credits from a wetland bank site. A wetland bank site in a location of created wetlands that can be used to offset fill in other areas, typically in the same county or watershed. Elk River currently owns a wetland bank site with less than an acre of remaining available credits for purchase. Our long-term goal is to create another, larger wetland bank site and sell wetland credits when projects in our city require wetland fill. A total of $145,000 has been set aside since 2017 to purchase this site. Creating a wetland bank site requires suitable land to restore or create new wetlands. There are also additional costs involved with creating the bank site. The creation process includes design work, permitting, site construction (grading, berms, ditch control), vegetation establishment and annual monitoring and maintenance. The EDA annual budget item is being set aside for these costs in establishing a wetland bank site. Once established, the wetland credits would be sold for projects at a market rate per acre. DRONE FOOTAGE Drone footage includes site virtualization and an interactive format that would offer visitors the opportunity to engage in the following activities for the various EDA available lots, the Sherburne County site and other future industrial sites:  On each site pin the available “financial incentives”  Simulate driving on Hwy 169 – flow and businesses  Pin utility information (cost, voltage etc./provider information)  Pin fiber information and provider information  Pin utility substations with voltage etc.  Pin Permitting process and timeline  Show reclamation of Tiller Gravel mine and future site possibilities  Pin type of rail i.e. BNSF commercial rail and Northstar commuter rail  Pin airports  Drone footage of the community, community events, EDA available lots, gravel mine area, accessibility  Potential buildings on available lots – as was completed for the two Northstar Lots Cost: $10,000 future updates available as needed Major initiatives from these documents include:  Market the City of Elk River and gain positive exposure for the city.  Grow and maintain an inventory of private and public properties available for future development.  Maintain financial incentives to enhance economic development.  Celebrate and grow our existing businesses.  Develop and expand a microloan program to encourage new green collar jobs.  Increase the number of companies actively manufacturing products or components of products directly or indirectly used in renewable energy or energy efficiency by 2024.  Proactively work with the business community impacted by the 169 Redefine project.  Begin implementation of the EDA Strategic Plan. SUMMARY The proposed budget accounts for a slight decrease in expenditures for office supplies. An increase telephone, postage, conferences and schools, advertising and marketing, publishing, insurance, and dues and subscriptions. An allocation of $10,000 is proposed for the Together Elk River Campaign. Based upon discussions at the May 18, 2020, special meeting, $10,000 is allocated for incentives and rebates promoting Energy City. A new allocation in advertising and marketing of $2,000 is budgeted to showcase available industrial and commercial sites utilizing drone footage. The EDA should consider increasing this amount based on the information presented. Staff proposes $45,000 towards the wetland credit bank which is a shared initiative between the EDA and the Environmental Divisions, allocating $3,000 to the Initiative Foundation and $5,000 toward Public Art. Any unspent funds remaining at the end of the year stay in the EDA fund for future economic development purposes/projects. If a non-budget item comes up in 2021, we can use the fund balance and make a budget amendment. Financial Impact The 2021 expenditure budget is $369,650. Attachments  2021 EDA Budget/Goals  Resolution  July 15, 2020, EDA Budget Workshop Packet  MREJ Conference Calendar Dept:Economic Development Authority Acct.2017 2018 2019 No.Actual Actual Actual Detail Total Detail Total REVENUES: 3111 Property Taxes 358,578 375,631 331,581 334,450 363,150 3322 MV Credit 202 196 171 - 3621 Interest Income 3,792 8,376 16,511 5,000 3,000 3629 Miscellaneous Revenue 27,992 - - - 3949 Transfers In - HRA 3,500 3,500 3,500 3,500 3,500 TOTAL EDA REVENUES 394,064 387,703 351,763 342,950 369,650 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 89,871 97,777 100,800 106,550 112,150 4103 Part-time Pay 12,600 12,150 11,625 12,600 12,600 4104 PERA 6,830 7,513 7,710 8,100 8,600 4105 FICA 5,747 6,151 6,238 7,300 7,650 4107 Medicare 1,390 1,490 1,502 1,750 1,800 4108 Insurance 11,691 15,439 15,955 16,750 17,600 4109 Workers Comp 406 473 453 500 500 TOTAL PERSONAL SERVICES 128,535 140,993 144,283 153,550 160,900 SUPPLIES 4201 Office Supplies 1,307 1,248 1,628 2,600 1,050 Office supplies 1,100 700 Computer Software/Licensing (MNCAR, Sketchup, etc.)200 350 Computer replacement (Colleen)1,300 - 4212 Fuels & Lubes 45 32 211 50 50 Unleaded gas 50 50 TOTAL SUPPLIES 1,352 1,280 1,839 2,650 1,100 OTHER SERVICES & CHARGES 4304 Legal Fees 6,525 2,450 10,613 6,000 6,000 Misc.6,000 6,000 4319 Other Professional Services - - - 10,000 10,000 ED Strategic Plan 10,000 10,000 4321 Telephone 1,211 963 1,693 900 1,000 Cell phone (Amanda/ Colleen)900 1,000 4322 Postage 302 642 417 650 1,000 Marketing mailings 650 1,000 4331 Conferences/Schools 10,319 13,647 11,278 12,300 14,950 EDAM 1,000 1,800 Annual IEDC Conference 2,400 2,400 Chamber Events 150 150 MREJ 400 400 MNCREW 100 100 CMMA 100 100 Baker Tilly 400 400 Site Selector Conference 2,500 3,150 Economix Spring or Fall 2,150 2,250 Misc. training - IEDC Certification?1,200 1,200 MAEDC (BP and Competitive Conf.)1,900 3,000 4349 Advertising/Marketing 69,286 71,525 71,194 59,500 75,550 Community Profiles 750 750 Advertising (Production & Publication)15,000 12,850 Direct Mailings - Mfg Week 150 150 2021 BUDGET 2021 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services 2020 BUDGET 9/18/2020 Dept:Economic Development Authority Acct.2017 2018 2019 No.Actual Actual Actual Detail Total Detail Total 2021 BUDGETExplanation/Detail of Supplies or Services 2020 BUDGET Real Estate Signs 4,000 Promo items 2,500 2,500 Special events 3,150 3,250 Sponsorships (City/EDA)9,850 9,950 Catalyst 4,100 4,100 Trade Shows & Lead Generation (includes travel)11,900 11,900 EDA Website (EDA share - 1/2 EDA & 1/2 HRA)5,700 5,700 Lead Forensics (Shared by EDA/HRA)1,200 1,200 Promotion & Awards 900 900 Holiday card marketing 300 300 Together Elk River Campaign 10,000 Energy City Program (rebates)10,000 VR/Drone 2,000 4359 Publishing - 168 136 200 250 Public notices, etc 200 250 4361 Insurance 63 146 210 150 200 Auto insurance 150 200 4433 Dues/Subscriptions 4,083 4,986 4,779 4,550 4,700 EDAM 500 500 Chamber 500 550 CMMA 250 300 MNCAR 300 300 IEDC 650 650 Finance and Commerce 300 300 Rotary 300 300 MN Marketing Partnership 700 700 MAEDC 300 300 MPLS/ST Paul Business Journal 300 300 GROW MN/Salesforce License 450 500 4440 Miscellaneous 4,776 3,028 3,092 53,000 53,000 Initiative Foundation 3,000 3,000 Wetland credit bank 45,000 45,000 Public Art 5,000 5,000 TOTAL OTHER SERVICES & CHARGES 96,565 97,555 103,412 147,250 166,650 TRANSFERS OUT 39,500 41,000 4720 Jobs Incentive Fund 66,000 - - - 4721 General Fund 34,800 36,600 38,000 39,500 41,000 TOTAL EDA EXPENDITURES 327,252 276,428 287,534 342,950 369,650 REVENUES OVER/(UNDER) EXPENDITURES 66,812 111,275 64,229 - - ^^ 9/18/2020 Division: Completed by: Date: Performance Measure 2019 Actual 2020 Estimated 2021 Projected Conduct BR&E Visits 26 24 24 Facilitate Site Visits 4 4 4 Division Performance Measures & Goals for 2021 Economic Development Amanda Othoudt June 3, 2020 Division Goal Goal Objective/Task Market the City of Elk River and gain positive exposure for the city. Establish a business database to assist with marketing the city. Strategic Recruiting: Attend targeted industry (data centers, manufacturing, energy, medical device technology) trade shows, leverage opportunities with local companies. Identify key decision makers, provide FAM tours, coordinate development meetings with city/county/state. Partner with MN Marketing Partnership, Sherburne County and ERMU. Promote available properties on MNCAR. Attend Annual Site Selector Guild Conference. Grow and maintain an inventory of private and public properties available for future development Continue to fund the wetland bank to facilitate new development where wetlands impede growth. Maintain financial incentives to enhance economic development Maximize and leverage DEED monies, Initiative Foundation, Sherburne County Revolving Loan Fund and other financial tools and incentives Begin implementation of Strategic Plan Identify implementation schedule, plan for needed financing, procure resources needed for the Plan. Celebrate and grow our existing businesses Conduct Business Retention and Expansion visits to local businesses Increase the number of companies actively manufacturing products or components of products directly or indirectly used in renewable energy or energy efficiency by 2024 Work with ERMU and Environmental Departments 169 Redefine Project/Together Elk River Work with Engineering and Communication staff to proactively work with the business community impacted by the 169 Redefine Project and assist them with relocation within the city if necessary. Resolution 20- A Resolution of the City of Elk River Economic Development Authority, Establishing the Tax Levy for the Elk River Economic Development Authority for the City of Elk River, Minnesota WHEREAS, Minnesota Statutes §469.107, subd. 1, authorizes the Economic Development Authority to levy an amount not to exceed .01813 percent of the estimated market value within the city to be used for economic development purposes; and, WHEREAS, the Elk River Economic Development Authority will adopt and approve its budget and will forward such to the City of Elk River pursuant to Minnesota Statutes §469.100, subd. 2. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Elk River, Minnesota, that it hereby requests the City Council of the City of Elk River to levy a tax in the amount of $363,150 for the year 2021 for the benefit of the Authority to be used for Economic Development Authority purposes as provided by the statute. Passed and adopted this 17th day of August, 2020. Dan Tveite, EDA President ATTEST: Amanda Othoudt, EDA Executive Director NOTICE Elk River Economic Development Authority Wednesday, July 15, 2020 5:30 p.m. Elk River City Hall 13065 Orono Parkway Elk River, Minnesota The purpose of the meeting is as follows:  2021 EDA Budget and Goals Special Meeting of the Economic Development Authority AGENDA Wednesday, July 15, 2020 5:30 p.m. Elk River City Hall Upper Town 1. CALL MEETING TO ORDER 2. CONSIDER AGENDA 3. GENERAL BUSINESS 3.1 EDA 2021 Budget and Goals 4. ADJOURNMENT Meeting Protocol No sidebar discussions No interruptions State your concern Ensure you understand Don’t take things personally Adhere to time limits Come prepared Ensure all are heard The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community engagement that encourages and inspires prosperity Request for Action To Economic Development Authority Item Number 3.1 Agenda Section General Business Meeting Date July 15, 2020 Prepared by Amanda Othoudt, EDD Item Description 2021 EDA Budget & Budget Goals Reviewed by Lori Ziemer, Finance Director Reviewed by Cal Portner, City Administrator Action Requested Information presented for discussion only. Action is to be taken at the August 17, 2020, EDA meeting. Background/Discussion As part of the budget process, a budget workshop is advisable to allow for informal discussions regarding the goals and objectives, major projects, and other items influencing the EDA budget. Staff prepared a draft budget to address several of the goals outlined through recent EDA discussion. To meet EDA Bylaws, the EDA must approve the budget at their August 17, 2020, regular meeting, and make recommendation to the City Council on September 21, 2020. As drafted, the proposed expenditures are $364,650. Staff is proposing a slight decrease in expenditures for office supplies. An increase telephone, postage, conferences and schools, advertising and marketing, publishing, insurance, and dues and subscriptions. An allocation of $10,000 is proposed for the Together Elk River Campaign. Based upon discussions at the May 18, 2020, special meeting, $10,000 is allocated for incentives and rebates promoting Energy City. A new allocation in advertising and marketing is budgeted to showcase available industrial and commercial sites utilizing drone footage. Staff proposes $45,000 towards the wetland credit bank which is a shared initiative between the EDA and the Environmental Divisions and allocating $3,000 to the Initiative Foundation. The EDA levy options are as follows: 1) A Balanced Rate 2) 0.01813% Maximum Rate All levy options are applied against the Estimated Market Value that will be obtained from Sherburne County. In addition to the tax levy, we also calculate interest income of $3,000 and $3,500 transfer from the HRA for supplies and shared costs. Financial Impact None Attachments  EDA 2021 Budget Goals  EDA Budget Worksheet Dept:Economic Development Authority Acct.2017 2018 2019 No.Actual Actual Actual Detail Total Detail Total REVENUES: 3111 Property Taxes 358,578 375,631 331,581 334,450 358,150 3322 MV Credit 202 196 171 - 3621 Interest Income 3,792 8,376 16,511 5,000 3,000 3629 Miscellaneous Revenue 27,992 - - - 3949 Transfers In - HRA 3,500 3,500 3,500 3,500 3,500 TOTAL EDA REVENUES 394,064 387,703 351,763 342,950 364,650 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 89,871 97,777 100,800 106,550 112,150 4103 Part-time Pay 12,600 12,150 11,625 12,600 12,600 4104 PERA 6,830 7,513 7,710 8,100 8,600 4105 FICA 5,747 6,151 6,238 7,300 7,650 4107 Medicare 1,390 1,490 1,502 1,750 1,800 4108 Insurance 11,691 15,439 15,955 16,750 17,600 4109 Workers Comp 406 473 453 500 500 TOTAL PERSONAL SERVICES 128,535 140,993 144,283 153,550 160,900 SUPPLIES 4201 Office Supplies 1,307 1,248 1,628 2,600 1,050 Office supplies 1,100 700 Computer Software/Licensing (MNCAR, Sketchup, etc.)200 350 Computer replacement (Colleen)1,300 - 4212 Fuels & Lubes 45 32 211 50 50 Unleaded gas 50 50 TOTAL SUPPLIES 1,352 1,280 1,839 2,650 1,100 OTHER SERVICES & CHARGES 4304 Legal Fees 6,525 2,450 10,613 6,000 6,000 Misc.6,000 6,000 4319 Other Professional Services - - - 10,000 10,000 ED Strategic Plan 10,000 10,000 4321 Telephone 1,211 963 1,693 900 1,000 Cell phone (Amanda/ Colleen)900 1,000 4322 Postage 302 642 417 650 1,000 Marketing mailings 650 1,000 4331 Conferences/Schools 10,319 13,647 11,278 12,300 14,950 EDAM 1,000 1,800 Annual IEDC Conference 2,400 2,400 Chamber Events 150 150 MREJ 400 400 MNCREW 100 100 CMMA 100 100 Baker Tilly 400 400 Site Selector Conference 2,500 3,150 Economix Spring or Fall 2,150 2,250 Misc. training - IEDC Certification?1,200 1,200 MAEDC (BP and Competitive Conf.)1,900 3,000 4349 Advertising/Marketing 69,286 71,525 71,194 59,500 75,550 Community Profiles 750 750 Advertising (Production & Publication)15,000 12,850 Direct Mailings - Mfg Week 150 150 2021 BUDGET 2021 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services 2020 BUDGET 7/14/2020 Dept:Economic Development Authority Acct.2017 2018 2019 No.Actual Actual Actual Detail Total Detail Total 2021 BUDGETExplanation/Detail of Supplies or Services 2020 BUDGET Real Estate Signs 4,000 Promo items 2,500 2,500 Special events 3,150 3,250 Sponsorships (City/EDA)9,850 9,950 Catalyst 4,100 4,100 Trade Shows & Lead Generation (includes travel)11,900 11,900 EDA Website (EDA share - 1/2 EDA & 1/2 HRA)5,700 5,700 Lead Forensics (Shared by EDA/HRA)1,200 1,200 Promotion & Awards 900 900 Holiday card marketing 300 300 Together Elk River Campaign 10,000 Energy City Program (rebates)10,000 VR/Drone 2,000 4359 Publishing - 168 136 200 250 Public notices, etc 200 250 4361 Insurance 63 146 210 150 200 Auto insurance 150 200 4433 Dues/Subscriptions 4,083 4,986 4,779 4,550 4,700 EDAM 500 500 Chamber 500 550 CMMA 250 300 MNCAR 300 300 IEDC 650 650 Finance and Commerce 300 300 Rotary 300 300 MN Marketing Partnership 700 700 MAEDC 300 300 MPLS/ST Paul Business Journal 300 300 GROW MN/Salesforce License 450 500 4440 Miscellaneous 4,776 3,028 3,092 53,000 48,000 Initiative Foundation 3,000 3,000 Wetland credit bank 45,000 45,000 Public Art 5,000 - TOTAL OTHER SERVICES & CHARGES 96,565 97,555 103,412 147,250 161,650 TRANSFERS OUT 39,500 41,000 4720 Jobs Incentive Fund 66,000 - - - 4721 General Fund 34,800 36,600 38,000 39,500 41,000 TOTAL EDA EXPENDITURES 327,252 276,428 287,534 342,950 364,650 REVENUES OVER/(UNDER) EXPENDITURES 66,812 111,275 64,229 - - ^^ 7/14/2020 Division: Completed by: Date: Performance Measure 2019 Actual 2020 Estimated 2021 Projected Conduct BR&E Visits 26 24 24 Facilitate Site Visits 4 4 4 Division Performance Measures & Goals for 2021 Economic Development Amanda Othoudt June 3, 2020 Division Goal Goal Objective/Task Market the City of Elk River and gain positive exposure for the city Strategic Recruiting: Attend targeted industry (data centers, manufacturing, energy, medical device technology) trade shows, leverage opportunities with local companies. Identify key decision makers, provide FAM tours, coordinate development meetings with city/county/state. Partner with MN Marketing Partnership, Sherburne County and ERMU. Promote available properties on MNCAR. Attend Annual Site Selector Guild Conference. Grow and maintain an inventory of private and public properties available for future development Continue to fund the wetland bank to facilitate new development where wetlands impede growth. Maintain financial incentives to enhance economic development Maximize and leverage DEED monies, Initiative Foundation, Sherburne County Revolving Loan Fund and other financial tools and incentives Begin implementation of Strategic Plan Identify implementation schedule, plan for needed financing, procure resources needed for the Plan. Celebrate and grow our existing businesses Conduct Business Retention and Expansion visits to local businesses Develop and expand a microloan program to encourage 50 new green collar jobs by 2024 Work with ERMU and Environmental Departments Increase the number of companies actively manufacturing products or components of products directly or indirectly used in renewable energy or energy efficiency by 2024 Work with ERMU and Environmental Departments 169 Redefine Project/Together Elk River Work with Engineering and Communication staff to proactively work with the business community impacted by the 169 Redefine Project and assist them with relocation within the city if necessary. 2020 Conference Calendar ​January 10 2020 Apartment Summit January 17 Appraisal Summit January 31 Construction Summit February 7 West Suburban Development Summit February 20 Condo Summit March 6 Opportunity Zones Summit March 12 Retail & Restaurant Summit July 30 Commercial Real Estate Forecast Summit August 3 19th Annual MREJ Golf Classic August 6 Medical Properties August 14 Capital Markets Summit August 21 Mid-Year Apartment Summit August 27 Property Management Summit September 2 North Metro Development Summit (webinar only) September 16 Land Development/Brownfield Summit September 18 St. Paul Summit September 23 Women in Real Estate Summit October 1 MREJ Awards October 9 Downtown Development and Lake Street Summit October 13 Destination Medical Center Summit in Rochester October 21 Residential Real Estate Summit October 22 National Net Lease Summit October 29 Senior Housing Summit November 6 South Suburban Summit November 13 Industrial Real Estate Summit November 19 Redevelopment Summit December 4 Office Summit December 10 Affordable Housing Summit December 16 Holiday Party Dept:Economic Development Authority Acct.2017 2018 2019 No.Actual Actual Actual Detail Total Detail Total REVENUES: 3111 Property Taxes 358,578 375,631 331,581 334,450 363,150 3322 MV Credit 202 196 171 - 3621 Interest Income 3,792 8,376 16,511 5,000 3,000 3629 Miscellaneous Revenue 27,992 - - - 3949 Transfers In - HRA 3,500 3,500 3,500 3,500 3,500 TOTAL EDA REVENUES 394,064 387,703 351,763 342,950 369,650 EXPENDITURES: PERSONAL SERVICES 4101 Regular Pay 89,871 97,777 100,800 106,550 112,150 4103 Part-time Pay 12,600 12,150 11,625 12,600 12,600 4104 PERA 6,830 7,513 7,710 8,100 8,600 4105 FICA 5,747 6,151 6,238 7,300 7,650 4107 Medicare 1,390 1,490 1,502 1,750 1,800 4108 Insurance 11,691 15,439 15,955 16,750 17,600 4109 Workers Comp 406 473 453 500 500 TOTAL PERSONAL SERVICES 128,535 140,993 144,283 153,550 160,900 SUPPLIES 4201 Office Supplies 1,307 1,248 1,628 2,600 1,050 Office supplies 1,100 700 Computer Software/Licensing (MNCAR, Sketchup, etc.)200 350 Computer replacement (Colleen)1,300 - 4212 Fuels & Lubes 45 32 211 50 50 Unleaded gas 50 50 TOTAL SUPPLIES 1,352 1,280 1,839 2,650 1,100 OTHER SERVICES & CHARGES 4304 Legal Fees 6,525 2,450 10,613 6,000 6,000 Misc.6,000 6,000 4319 Other Professional Services - - - 10,000 10,000 ED Strategic Plan 10,000 10,000 4321 Telephone 1,211 963 1,693 900 1,000 Cell phone (Amanda/ Colleen)900 1,000 4322 Postage 302 642 417 650 1,000 Marketing mailings 650 1,000 4331 Conferences/Schools 10,319 13,647 11,278 12,300 14,950 EDAM 1,000 1,800 Annual IEDC Conference 2,400 2,400 Chamber Events 150 150 MREJ 400 400 MNCREW 100 100 CMMA 100 100 Baker Tilly 400 400 Site Selector Conference 2,500 3,150 Economix Spring or Fall 2,150 2,250 Misc. training - IEDC Certification?1,200 1,200 MAEDC (BP and Competitive Conf.)1,900 3,000 4349 Advertising/Marketing 69,286 71,525 71,194 59,500 75,550 Community Profiles 750 750 Advertising (Production & Publication)15,000 12,850 Direct Mailings - Mfg Week 150 150 2021 BUDGET 2021 BUDGET DETAIL SHEET Explanation/Detail of Supplies or Services 2020 BUDGET 9/18/2020 Dept:Economic Development Authority Acct.2017 2018 2019 No.Actual Actual Actual Detail Total Detail Total 2021 BUDGETExplanation/Detail of Supplies or Services 2020 BUDGET Real Estate Signs 4,000 Promo items 2,500 2,500 Special events 3,150 3,250 Sponsorships (City/EDA)9,850 9,950 Catalyst 4,100 4,100 Trade Shows & Lead Generation (includes travel)11,900 11,900 EDA Website (EDA share - 1/2 EDA & 1/2 HRA)5,700 5,700 Lead Forensics (Shared by EDA/HRA)1,200 1,200 Promotion & Awards 900 900 Holiday card marketing 300 300 Together Elk River Campaign 10,000 Energy City Program (rebates)10,000 VR/Drone 2,000 4359 Publishing - 168 136 200 250 Public notices, etc 200 250 4361 Insurance 63 146 210 150 200 Auto insurance 150 200 4433 Dues/Subscriptions 4,083 4,986 4,779 4,550 4,700 EDAM 500 500 Chamber 500 550 CMMA 250 300 MNCAR 300 300 IEDC 650 650 Finance and Commerce 300 300 Rotary 300 300 MN Marketing Partnership 700 700 MAEDC 300 300 MPLS/ST Paul Business Journal 300 300 GROW MN/Salesforce License 450 500 4440 Miscellaneous 4,776 3,028 3,092 53,000 53,000 Initiative Foundation 3,000 3,000 Wetland credit bank 45,000 45,000 Public Art 5,000 5,000 TOTAL OTHER SERVICES & CHARGES 96,565 97,555 103,412 147,250 166,650 TRANSFERS OUT 39,500 41,000 4720 Jobs Incentive Fund 66,000 - - - 4721 General Fund 34,800 36,600 38,000 39,500 41,000 TOTAL EDA EXPENDITURES 327,252 276,428 287,534 342,950 369,650 REVENUES OVER/(UNDER) EXPENDITURES 66,812 111,275 64,229 - - ^^ 9/18/2020 Division: Completed by: Date: Performance Measure 2019 Actual 2020 Estimated 2021 Projected Conduct BR&E Visits 26 24 24 Facilitate Site Visits 4 4 4 Division Performance Measures & Goals for 2021 Economic Development Amanda Othoudt June 3, 2020 Division Goal Goal Objective/Task Market the City of Elk River and gain positive exposure for the city. Establish a business database to assist with marketing the city. Strategic Recruiting: Attend targeted industry (data centers, manufacturing, energy, medical device technology) trade shows, leverage opportunities with local companies. Identify key decision makers, provide FAM tours, coordinate development meetings with city/county/state. Partner with MN Marketing Partnership, Sherburne County and ERMU. Promote available properties on MNCAR. Attend Annual Site Selector Guild Conference. Grow and maintain an inventory of private and public properties available for future development Continue to fund the wetland bank to facilitate new development where wetlands impede growth. Maintain financial incentives to enhance economic development Maximize and leverage DEED monies, Initiative Foundation, Sherburne County Revolving Loan Fund and other financial tools and incentives Begin implementation of Strategic Plan Identify implementation schedule, plan for needed financing, procure resources needed for the Plan. Celebrate and grow our existing businesses Conduct Business Retention and Expansion visits to local businesses Increase the number of companies actively manufacturing products or components of products directly or indirectly used in renewable energy or energy efficiency by 2024 Work with ERMU and Environmental Departments 169 Redefine Project/Together Elk River Work with Engineering and Communication staff to proactively work with the business community impacted by the 169 Redefine Project and assist them with relocation within the city if necessary. Resolution 20- A Resolution of the City of Elk River Economic Development Authority, Establishing the Tax Levy for the Elk River Economic Development Authority for the City of Elk River, Minnesota WHEREAS, Minnesota Statutes §469.107, subd. 1, authorizes the Economic Development Authority to levy an amount not to exceed .01813 percent of the estimated market value within the city to be used for economic development purposes; and, WHEREAS, the Elk River Economic Development Authority will adopt and approve its budget and will forward such to the City of Elk River pursuant to Minnesota Statutes §469.100, subd. 2. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Elk River, Minnesota, that it hereby requests the City Council of the City of Elk River to levy a tax in the amount of $363,150 for the year 2021 for the benefit of the Authority to be used for Economic Development Authority purposes as provided by the statute. Passed and adopted this 21st day of September, 2020. Dan Tveite, EDA President ATTEST: Amanda Othoudt, EDA Executive Director 701 XENIA AVENUE S | SUITE 300 | MINNEAPOLIS, MN | 55416 | 763.541.4800 | WSBENG.COM September 14, 2020 Ms. Colleen Eddy Economic Development Specialist City of Elk River 13065 Orono Parkway Elk River, MN 55330 Re: Site Visualization for PIDs 75-757-0105 and 75-597-0105 and 75-597-0110 Dear MS. Eddy: Thank you for providing WSB the opportunity to submit this proposal to provide the site visualization for three EDA properties; one lot in the Northstar Business Park and two Fox Haven lots. This proactive approach to economic development, by identifying and creating areas available for future development, will allow for the City to be better positioned for attraction and retention projects. The three properties that are included in this proposal are PIDs 75-757-0105, 75-597-0105, and 75-597-0110 as shown below: Colleen Eddy September 14, 2020 Page 2 Based upon our discussions for the site visualization, we have developed the following summary of the proposed Scope of Services for the project. PROPOSED SCOPE OF SERVICES Task 1: Drone Flight of Identified Properties: Drone flight will be performed by a licensed and Insured FAA Part 107 Authorized sUAS pilot and will be accompanied by a visual observer to maintain visual line of sight of the sUAS aircraft. •Set ground control targets •Take hard/open ground surface verification •Preflight Safety checks and flight authorizations to drone flight of Identified properties •Fly the site •Process the drone data for deliverables Task 2: Information to be generated from drone activities: •Scaled map of site showing roadways, housing units, and other features along the roadways •Photographic imagery that can be used to “walk through” the site •SLPK (Esri Scene Layer Package) to the 3d Reality mesh deliverable •3D Reality mesh 3mx/3SM deliverable that can also be used as a visualization and measurement tool •Vertical and Horizontal accuracy of a tenth of a foot (0.10) or less on hard or open ground surfaces(non-vegetative). •HD Ortho Tiff Imagery base map •Las Point Cloud •Site Contours Task 3: Development of a site visualization that includes the following: •Financial Incentives Pin •Zoning Pin •Utility information Pin •Fiber Information Pin •City Permitting Process Pin •Rail Transportation Information Pin •Airport Information Pin •Additional Pins that the City may identify Information for the above “pins” will be provided by the City to incorporate into the visualization tool. Task 4: Simulation of drone flight along Highway 169 to site including the potential facility sited on the property. FEE FOR SERVICES As outlined in the above Scope of Services, the City has the option to retain WSB to complete the proposed work for a flat sum of $10,000. The schedule will be developed with the City staff to allow for the most effective use of the drone footage captured. Travel expenses incurred by WSB within Minnesota as part of the Scope Services offering are included in the fee. Additionally, fees Colleen Eddy September 14, 2020 Page 3 for services outside of the above described scope that maybe required shall be completed at an additional hourly rate, after the confirmation of the additional work by the City. In addition to our technical expertise, WSB is known for our strong commitment to providing over- the-top customer service and responding to our clients’ needs. Our client focus allows us to deliver cost-effective and successful projects since our founding in 1995. If you have any questions or would like any additional information, please contact Jim Gromberg at 612.762.2846 or jgromberg@wsbeng.com. Sincerely, WSB Brian Bourassa, PE Jim Gromberg, EDFP Principal Economic Development Coordinator Approval Signature By: _______________________________________ Title: ______________________________________ Date: ______________________________________ Wetland Bank Creation Amanda Erickson Environmental Coordinator Wetland Protection in Minnesota Wetlands in Minnesota are protected under the Wetland Conservation Act (WCA), overseen by the Board of Water and Soil Resources (BWSR) WCA Rule: Regulates fill, draining or excavating in various types of wetlands Relies on technical expertise for determining wetland delineations and applying rules Requires review and approval for all impacts to wetland Requires replacement for permanent wetland impacts at a 2:1 ratio, which can include purchasing wetland credits Wetland Bank Credits and Fees Wetland Banks are areas that have restored wetlands, essentially creating new wetlands. Sites must create new wetlands or restore previously impacted wetlands Bank sites must be approved by BWSR, who also determines amount of credits created Credits are then used to offset (mitigate) authorized wetland impacts in other locations Wetland Bank owners can be both private and public entities Credits are sold in an open market Elk River Wetland Bank A long term goal for the city is to create a wetland bank site within the City of Elk River. This will allow us to have credits available for projects within the city that impact wetlands and allow us to sell credits. Credits can be sold throughout the state, with preference given to projects within the same Bank Service Area (region). Credits have significantly increased in price over the last several years. The average cost per credit (acre) was $41,000 in 2014, $82,000 in 2018 and estimated $93,000 in 2020 for our region. Creating a Wetland Bank Site Creating a wetland bank site is complex and expensive, which is why there are few in the state and credits are becoming more valuable. Costs include: Bank Plan: delineation, construction plan and design Construction: berm, grading, vegetation establishment Monitoring and maintenance: five year period of annual inspections Total cost estimated in 2020: $220,000 Additional cost of land for site –various sites have been reviewed in the past to determine feasibility and amount of credits that would be created Long Term Goals Goal: create a wetland bank site in Elk River Continue to budget money for the creation of a bank annually Review potential sites in the city as applicable Funding available currently includes money from the sale from our existing small bank (approx. 0.5 acres remaining), we sold 0.75 acres to ERMU in 2017 for about $28,000 Existing funding total of $145,000 plus $45,000 for 2021. Questions?