8.2. EDSR 01-19-2021 V'
City or
Elk Request for Action
River
To Item Number
Economic Development Authori 8.2
Agenda Section Meeting Date Prepared by
General Business January 19, 2021 Colleen Eddv, Economic Development Specialist
Item Description Reviewed by
Annual Report Cal Portner, City Administrator
Reviewed by
Action Requested
Receive the 2020 Annual Report.
Background/Discussion
Staff will present the 2020 Annual Report,which reflects the accomplishments achieved this past year.
Financial Impact
N/A
Mission/Policy/Goal
The Annual End-of-Year Report informs the EDA on the accomplishments achieved in 2020 and ongoing
projects.
Attachments
■ 2020 Annual Report—to be distributed at the meeting
The Elk River Vision
A )relcom' community aa)ith revolutionary and spirited zesourcefulness, exceptional p o w E A E u e r
service, and community engagement that encourages and inspires prosperity®
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Our Mission: E& River, Minnesota, is a welcoming community with revolutionary
and spirited resourcefulness, exceptional service, and community engagement that
encourages and inspires prosperity! 2020
Annual Report
2020 IN REVIEW
2020 was like no other! We all learned the meaning of
pivot, and Elk River did. No COVIDI9 pandemic could
stop us it was a productive year and we achieved
several major accomplishments:
EDA STRATEGIC PLAN
We started 2020 with a request for proposals to facilitate
an EDA Strategic Plan. Eleven proposals were received
and four companies were interviewed virtually. Stantec
was selected assist with the development of a strategic
plan to guide the EDA over the next 5-10 years. After
several community and peer city conversations, the EDA
will approve and start 2021 off with a plan and goals to
accomplish in the next 5-10 years.
BUSINESS RETENTION AND
EXPANSION
Pivoting at its finest, economic development staff completed 18 BR&E visits; four in person, three by
Zoom virtual meetings, seven through an online survey, and four by telephone. The year started with four in
-person visits to local banks to discuss available financial incentives the EDA and HRA. Several businesses
were able to pivot and thrive during the initial start of the pandemic. Flowers Plus, a local floral and retail
business saw over a 75% increase in sales. The owner indicated the increase desire for people to stay
connected with flowers and notes. One manufacturer saw over a 110% increase in his medical device sector
sales citing a growing need for labeling and tracking.
Q13 Indicate type of facility (please check all that apply).
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City of Elk River
Economic Development Authority
3
SITE VISITS
Staff completed three site visits; two in person and one virtual
• Sever Construction —Matt Wagner, Project Manager
Established in 2009, Sever's primary focus is on ground -up construction projects within industrial, medical,
office and aviation markets. Staff discussed the Proposed Main and Gates Redevelopment Project.
• Adolfson and Peterson—Andra Adolfson, Business Development
Adolfson & Peterson is a family -owned company consistently ranked among the top construction managers
and general contractors in the nation. Their primary focuses are on healthcare and multifamily sectors. Staff
discussed and presented the EDA available sites within the city.
• Benson-Orth—Steven Grant, Business Development
Founded by Ken Benson and Bob Orth to offer general contracting services in the local Twin Cities
community with a primary focus is on multi -tenant units. This visit took place at the Real Estate Journal's
Industrial Summit.
BEAUTIFICATION AWARD
The Beautification Committee awarded Elk Plaza Dental with the 2020 Beautification
Award. Dr. Hunter made significant exterior improvements to the facade of his business.
.1 Improvements also included new landscaping which along with the facade presents a
new and modernized look for this building and greatly increasing its curb appeal. The
work started late fall and continued throughout the COVID-19 closure of his business.
Dr. Hunter has taken an older building and given it much needed pop and beautification.
Y �V The investment signals his dedication to making Elk River a better place for business.
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Plaisted Companies was a finalist and received recognition for remodeling their Outdoor
Landscape Supply Showroom area. The Outdoor showroom is a great display area for
both homeowners and contractors to receive ideas for outdoor landscaping products.
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)mic Development Authority
4
REALTOR DAY 2020
Realtor Day 2020 was the last in -
person event before pandemic
restrictions began. It was attended by
50 real estate agents and brokers, who
received information and
presentations from Mayor Dietz,
representatives from Guardian
Angels, ISD #728, City of Elk River
Engineering and Environmental
Divisions.
Comments and feedback were very
positive and the event was very well
received.
BUSINESS SURVEY
In 2019, a business satisfaction survey of developers and businesses regarding City of Elk River community
development services was completed by the Elk River Area Chamber of Commerce.
Following the surveycompletion, community development staff presented findings and solutions to many of the
concerns that were expressed. The Authority was provided updates to new policies, procedures and technology to
improve customer service reduce timelines and document progress. Moving forward, staff will periodically update
the EDA on new developments.
PUBLIC ART
Slipsteam, was selected by the Public Art Subcommittee to be the city's newest public art exhibit. Slipstream is a
celebration of the highways of Charles Merritt Babcock and the Elk River community from which he came.
The proposal was submitted by The Milligan Studio,
Dr. Nicole Mary Milligan (N.M.Kelby) and Alan S.
Milligan.
The city submitted for and was awarded a grant from
the Central Minnesota Arts Board to implement
Slipstream, which will be installed on property owned
by Granite Shores.
1W. I
City of Elk River
Economic Development Authority
FINANCIAL INCENTIVES/MICROLOANS
Like many communities, Elk River responded to the Governor's Emergency Executive Orders to establish
assistance programs for local businesses.
The EDA established the COVID-19 Small Business Emergency Microloan Program which allocated up to
$200,000 from the Economic Development Business Microloan program as the source of funding. The
program was designed to offer zero interest loans up to $20,000, amortized over 10 years with payments
deferred for 6-months to qualifying businesses. The program included a forgivable loan component for up to
$5,000 in property tax relief. In late November, the EDA approved forgiving these crucial loans.
At the start of the pandemic the Department of Employment and Economic Development (MNDEED)
facilitated bi-weekly calls to keep economic development professionals up to date on changes to federal and
state loan programs and resources available to local businesses. MNDEED continues to facilitate these calls
which are now offered on a weekly basis and includes information from various state departments and
important resources for our business community.
Orluck Industries requested and received an extension of their
Jobs Incentive Microloan.
Morrell Trucking requested and received an extension on their
CRRELL Jobs Incentive Microloan. Each of these extensions and contin-
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MUI' it ") RANSFER uvc. ued payments on the existing loan structures would provide ad-
ditional capital and cash flow for the owners to invest in its em-
ployees and company during the extended period.
Yankee Doodle Enterprises received a $74,999 Energy Effi-
ciency Improvement microloan and recently refinanced their
debt and received a Mortgage Subordination Agreement from
the EDA.
Shoot Steel, a target manufacturer, purchased EDA property at
17565 Tyler Street NW and received Tax Increment Financing
to move their business from the City of Ramsey to Elk River.
We welcome our newest business who brings nine full-time em-
ployees with plans to hire more once they are established in their
new facility.
City of Elk River
Economic Development Authority
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INQUIRIES:
Staff replied to 25 inquiries from various sources that ranged from GreaterMSP, DEED, MNCAR, MMPA, Site
Selector Guild, GRE etc. Seven inquiries turned into projects or are still underway —which included Distinctive
Iron, Patriot Converting, Shoot Steel, the GRE sorting facility, and Riverwalk Apartments.
ORONO PARK LAND SWAP:
The EDA approved a deed transferring ownership of parcels within the Orono Park Plat from the Economic
Development Authority to the City of Elk River, to facilitate the repla.ting of multiple parcels to create a single lot
for Orono Park. The EDA own the parcels that include City Hall, the Public Safety Building, and the parcel with
the pavilion on the south side of Orono Beach. Ownership of the parcels was transferred from the city to the
EDA to allow the issuance of EDA Lease Levy bonds to build City Hall in 1991. The bonds have since been paid
off and the EDA is no longer required to maintain ownership of the lots.
MARKETING/ADVERTISING/SPONSORSHIPS:
Elk River continued to sponsor Elk River Extreme Motor Park, the EDAM winter and summer conferences, the
Elk River Chamber Golf Tournament, and the Industrial Real Estate Journal Summits.
Overall, our marketing efforts reached over 354,650 subscribers for unprecedented cost per impression of just
eight cents.
The EDA available lot sell sheets were all updated using the newest EDA logo. And the EDA website went un-
der a major revamp. The website includes drone video footage showcasing Elk River on it's home page. The new
website consolidated the business toolbox, included a rendering of the EDA's 12 acre lot on Tyler Street, added a
page which highlights the various Powered by our Business video collage, and incorporated several of Elk River
amenities.
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Economic Development Authority
TOGETHER ELK RIVER
A major accomplishment the EDA achieved in 2020 is the establishment of the Together Elk River campaign.
Together Elk River is a community initiative to encourage, engage, and support local businesses, non -profits, and
neighbors in need through challenging times.
The EDA allocated $10,000 to the initiative and created a subcommittee which included staff from the city and
chamber and was lead by Councilwoman Wagner, who was the driving force of campaign. The subcommittee
created various task forces within the committee to work on things like developing content for the website, yard
signs, billboards, stickers, clings, etc. Other items to help market TER, was a banner which ran in the Star News
and the logo and message was displayed on billboards on Hwy. 10 beginning on May 16, 2020.
Electronic Billboards across Elk River displayed the Together Elk River Logo. Stickers, window decals and yard
signs were distributed. The municipal liquor stores distributed campaign items at each location. Items were also
distributed at the farmers market. A coloring contest gained momentum and were posted to social media outlets.
Support Together Elk River Spirit meek" ran August 23-29, 2020 and was a success! The city purchased Google Ads,
Facebook ads and Boosted Facebook ads that had a reach of over 47,000 impressions. The Together Elk River campaign and Spirit
Week were also highlighted on the front page of the Star News two weeks in a row. Downtown banners were printed to
showcase the six focus areas of the campaign; Dines, Shops, Plays, Grows, Supports, and Gives. They were
installed right in time for Spirit Week.
The Together Elk River Sub -committee created a Brand Ambassador group to help promote and support the
campaign, as well as offer input and ideas on how the group can continue to grow and support the program.
We ended 2020 with a Holiday message from Elk River businesses:
A simple "thank you" wasn't enough to all who've continued to patronize small businesses during the uncertain
times we've all been faced with in 2020. After all, we're in this #TogetherElkR.iver!
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'.ity of Elk River
conomic Development Authority
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City of
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City of Elk River 1 13065 Orono Parkway, Elk River, MN 55330 763.635. 1000 1 ElkRiverMN.gov
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City of Elk River
Economic Development Authority