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8. EDSR 08-11-2008 ITEM # 8. ver MEMORANDUM T®: Economic Development Authority FR®M: Jeff Gongoll, Community Development Director DATE: August 11, 2008 SUBJECT: UPDATE: Energy Entertainment Enterprises, LLC Proposal BACKGROUND At last month's EDA meeting, a general discussion occurred regarding the status of this project. The original proposal was submitted to the EDA at its October 2007 meeting. Since then, the City property known as `Gateway Business Park' was platted into oudots in March 200$. Also in March 2008, a Tax Abatement Application was submitted to the City along with the required $5,000 application fee. As a result, additional and specific financial information was requested by the City for review by the City's financial consultants, Ehlers and Associates. In early July 2008, we learned that the general building site, consisting of 14 acres, had shifted entirely onto City property, generally Outlot C. DISCUSSION Supplemental financial information was submitted and reviewed by Ehlers and Associates last week. 'This information has yielded an understanding that the project will have an estimated taxable market value of $23.8 million consisting of a 120 room hotel, 1,500 person conference/banquet center, multiple lane bowling facility, full restaurant and bar, and numerous related entertainment activities. Job creation estimates were indicated at a total of 160; 65 full-time living wage, 50 part-time >$14/hour, 45 part-time at $7-$14/hour. The requested assis $1,800,000 830,000 1,748,000 97,000 $4,475,000 tance is in the form of: Land cost SAC & VVAC fees Site preparation costs Park dedication fees. Total assistance requested Energy Entertainment Proposal August 11, 2008 Page 2 of 2 Last week, City staff and Ehlers met with Entertainment representatives and suggested that any assistance would most likely be through the tax abatement pay-as-you-go process to recover project costs, which is typically what has been utilized and is per the City/EDA policy guidelines. The present-value analysis performed by Ehlers estimated the available tax abatement at slightly less than $2.0 million (assuming a 20-year 100% City participation). REQUESTED ACTION The EDA is asked to review the latest information and discuss: 1. Whether to proceed with this proposal? 2. Whether to proceed with this proposal in this location? 3. What, if any, assistance is applicable for this proposal? Staff stands ready to continue the analysis and placement of this project dependent upon EDA review and discussion. Attachments ^ EECHCC But-For Analysis -August 1, 2008 ^ EECHCC Venues & Space Usage -August 1, 2008 ^ EDA Meeting Minutes -October 8, 2007 EECHCC o3UT-FOR ANALYSIS WITH NO ASSISTANCE WITH ASSISTANCE SOURCES 8~ USES SOURCES & USES SOURCES SOURCES MORTGAGE 36,102,000 31,627,000 EQUITY 3, 800, 000 3, 800, 000 INCENTIVES -ASSISTANCE - 4,475,000 land, prep, abatement, etc TOTAL SOURCES $ 39,902,000 $ 39,902,000 USES USES SOFT COSTS Design & Engineering 1,975,800 1,975,800 Permits, Testing & Fees 1,096,566 169,481 Legal & Due Dilegence 364,000 364,000 Legal & Accounting 646,500 646,500 Insurance & Taxes 1,654,500 1,654,500 Mgmt Fees & Reserve 3,435,955 3,435,955 Soft Cost Subtotal 9,173,321 8,246,236 LAND 8~ CONSTRUCTION Property & Closing Costs 2,668,945 921,030 Sitework 2,265,994 465,994 Utilities 173,140 173,140 Building 16,924,750 16,924,750 Furniture, Fixtures & Equip 4,796,500 4,796,500 General Contractor & Conditions 3,899,350 3,899,350 Land ~ Construction Subtotal 30,728,679 27,180,764 City Assistance ~ Incentives - 4,475,000 TOTAL USES $ 39,902,000 $ 39,902,000 Net Operating Income 2,771,403 2,771,403 Mortgage 2, 970, 060 2,625, 942 30 yr term, 7.3% int 30 yr term, 7.3% int 36,102,000 principle 3 1,627,000 principle Net Cash Available (198,657) 145,461 Return on Equity -5,23% 3.83% gl~~~g VENUES & SPACE USAGE -SQUARE FOOTAGE 1 Hotel 95,000 sq ft Three levels in two building sections, approx 45 poolside/poolview rooms -120 rooms Swimming Pool, Slide, & Spa 4,000 sq ft Tanning Salon 1,200 sq ft Gift Shop 1,200 sq ft Reception 1,500 sgft Foyer 3,000 sq ft Cafe -Coffee 1;200 sq ft Business Center 750 sq ft Conference Center 23,000 sq ft Kitchen - Conf Ctr 9,000 sq ft Includes staging hallway Kitchen -Restaurant 3,100 sq ft Includes 320 sq ft of walkins, dishing, expo and server staging area, dry storage Restaurant Dining 1,500 sq ft Bar -Main 6,500 sq ft Includes walkins, bar area, billiards & games, stage, dance floor, liquor and dry storage Bar -Lounge 1,500 sq ft Bar -Deck 1,200 sq ft Snack Bar 1,000 sq ft 200 sq ft of seating, Bowling 35,000 sq ft Includes control counter, pinsetters, inventory area Arcade 5,000 sq ft Lazer Tag 5,000 sq ft Mini Golf 6,000 sq ft Rock Climbing 4,000 sq ft Office Space 4,000 sq ft Staging 3,000 sq ft Dock 3,000 sq ft Shipping-Receiving 2,500 sq ft Storage 9,000 sq ft Banquet Smallwares, Banquet Furniture, Banquet Equipment, Maint Equip -Heavy Equip, Event Temp Storage, Hotel Supplies, Hotel Xtras Elevators 2, 000 sq ft , 3 elevators - 2 public -1 large freight elevator Hallways 30,000 sq ft Stairways 8,000 sq ft -e. cam-' '~'~' '' ~ ~_ i VENUES & SPACE USAGE -SQUARE FOOTAGE ' Portico 2,000 sq ft Party Rooms 2,500 sq ft Public Restrooms 12,000 sq ft Employee Break Room 1,500 sq ft Employee Restrooms 200 sq ft Hotel Laundry 1,500 sq ft Janitorial Closets 750 sq ft Utility Rooms 2,000 sq ft Walk-ln Coolers 3,000 sq ft Foodservice Oil 300 sq ft Communication Room 500 sq ft Video Rooms 500 sq ft Billiards 1,500 sq ft Exercise Room 1,500 sq ft Proshop 1,000 sq ft Meeting Space 5,000 sq ft Recycle -Rubbish .2,000 sq ft Redemption 1,000 sgft Maid Service Rooms 800 sq ft TOTAL SQUARE FOOTAGE 310,700 Economic Development Authority Minutes October 8, 2007 Page 2 P.M. TO AWARD THE SALE OF $10,000,000 GENERAL OBLIGATION BONDS, SERIES 2007. MOTION CARRIED 7-0. 6. Consider Resolutions ApUroving the Decertification of TIF District No. 17 and TIF District No. 20 in the City of Elk River Director of Economic Development Catherine Mehelich presented her staff report. MOVED BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER KLINZING TO ADOPT RESOLUTION 07-OG APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 17 WITHIN DEVELOPMENT DISTRICT NO.1 IN THE CITY OF ELK RIVER. MOTION CARRIED 7-0. MOVED BY COMMISSIONER TVEITE AND SECONDED BY COMMISSIONER MOTIN TO ADOPT RESOLUTION 07-07 APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT NO. 20 WITHIN DEVELOPMENT DISTRICT NO. 1 IN THE CITY OF ELK RIVER. MOTION CARRIED 7-0. Update on Gateway Business Center Planning Manager Jeremy Barnhart presented his staff report. Mr. Barnhart stated that staff continues to work with the adjacent property owners to agree on the needs for the area. He noted that both of the major property owners are working on developing their own plans and axe not ready to offer more specific information at this time. Mr. Barnhart indicated that staff has Teamed that there is a possibility of one or two major land uses that wish to locate within the Gateway property. He stated that staff is taking a flexible approach to the layout and design of the Gateway property because the needs in terms of size, access, visibility are not known at this time. 8. Concept Review -Entertainment Center Director of Economic Development Catherine Mehelich presented hex staff report. Richardt Fleischmann, Energy Entertainment Enterprises, LLC - presented a PowerPoint outlining the details of the proposal for Energy Entertainment City Hotel and Conference Center. Mr. Fleischmann explained that in an attempt to ensure a successful venture fox all affected, Energy Entertainment Enterprises, LLC is requesting certain concessions and considerations to assist them in initiating their venture as follows: ^ Grant of 14 acres of land and waiving of associated assessments and fees ^ Site engineering and preparation assistance to include wetland mitigation, tree removal, and addition or removal of any required fill ^ Three year tax abatement on completed project ^ Negotiations on SAC, WAC, and other fees ^ Waiving of park dedication fees Economic Development Authority Minutes Page 3 October 8, 2007 Discounts on certain fee schedules such as plumbing and electrical Curb and gutter, walking paths, and area illumination Applicable rebates, financing, or incentive programs Ms. Mehelich stated that staff is looking for EDA feedback and direction on how to proceed. Commissioner Klinzing stated that this is an exciting project. She indicated that normally, the tax rebate financing would be inclusive of all the financial considerations and questioned why that approach was not taken. Mr. Fleischmann explained that Energy Entertainment Enterprises, LLC did not wish to be presumptious but would be interested in pursuing that option. Commissioner Dwyer questioned if the estimated construction costs were known. Mr. Fleischmann indicated construction is estimated at upwards of $20 million. David Sorenson, Energy Entertainment Enterprises, LLC -explained that the Gateway site was chosen due to its close proximity to the Northstar Rail and the park and ride. He noted that he is a long-time resident of Elk River. Commissioner Motin stated that the project sounds intriguing. He questioned the estimates on the proposed incentives. Mr. Clark indicated that the incentive costs are difficult to gauge but he would estimate between $2 - $3 million. Commissioner Motin stated that he would like to see an extension of the abatement period. Commissioner Tveite indicated that he also fords the project intriguing but expressed concerns over the request for a letter of intent prior to completion of the architectural work. Mx. Sorenson explained that the letter of intent would be necessary to secure funding for the architectural work. Discussion took place on the timing of the letter of intent and the land grant. It was the consensus of the EDA that they were in favor of the project but that the letter of intent would need to be structured so that if approved, financial considerations would be contingent upon progress of the project. Mr. Clark indicated that staff will come back at the November EDA meeting with the following information: ^ Full analysis of the city's overall costs ^ Analysis of the incentive request ^ Initial. findings on the but for analysis ^ Staff will work with the EDA attorney and Energy Entertainment Enterprises, LLC to draft a letter of intent Commissioner Motin indicated that he would like staff to compile a list of pros and cons for this project. Commissioner Zerwas stated that he would also like staff to project how this project would affect the remaining Gateway property. Update on U.S. Post Office Property Community Development Director Scott Clark presented his staff report. Mx. Clark stated that the U.S. Post Office will be selling their Line Avenue property through a sealed bid process. Mr. Clark explained that staff recognizes that the subject property is a very attractive ITEM ~ 9. of fiver MEMORANDUM TO: Economic Development Authority FROM: Annie Deckert, Economic Development Assistant DATE:. August 1 I, 2008 SUBJECT: Retail Trade Analysis Presentation BACKGROUND At the May 12, 2008 EDA meeting, EDA authorized staff to enter into a contract with the U of M Extension service to conduct a Retail Trade Analysis and Workshop and requested to review the report before deciding to hold a community workshop. An RTA report and workshop help a community. evaluate .the health of their retail sectors.. It provides local sales data, comparing your community to others, which in turn helps assess strengths and opportunities for our local businesses. This data specifies the actual retail potential, identifying retail opportunities, as well as which businesses are drawing shoppers away from our community. DISCUSSION/ACTION REQUESTED Tonight, U of M Consultant Claudia Cody, Regional Assistant Extension Professor, will be presenting a brief overview of the RTA data. Staff would like the EDA to evaluate the material presented and discuss how they would like to utilize this information. The EDA could partner with the Chamber of Commerce to hold a community workshop or the data could be used to assist in the EDA's marketing efforts (fie: put on website, sent out with marketing materials, etc.) ~Ielping Communities gnow and Grow UNIVERSITY OF MINNESOTA ~ Their Retail Customers Visit www.extension.un[n.edu/community ..' .L ,~ v Vd'hat is Trade Area Analysis ? TRADE AREA ANALYSIS A Trade Area Analysis organizes data from multiple sources into a comprehensive description of who shops in your community - demographics, purchasing power, as well as the lifestyles and values held by shoppers. Extension organizes this data into understandable reports and rich community discussions. Ultimately, this information can strengthen a business community's vision by meeting the needs of their customers and tapping available oppornuuties. IVhat information does a community learn in a Trade Area Analysis ? `The report includes a breadth of information of interest to local retailers and community leaders, including • The geographic reach of the community's trade area • Types of customers in the trade area • Demographics and income levels of households in the trade area • Potential spending in the trade area across multiple retail categories, with comparisons to the state • Types of media and leisure activites used by the vazieties of households in the trade area How cae~ Trade Area Analysis be used by businesses and communities ? ~ Chambers, economic development professionals, local businesses, tourism organizations and elected officials can tap this information to answer key questions such as • What other businesses might fit in our community ? • How can we effectively use media to market our community or business? • Do I have a viable business plan for this market ? • How can we change our inventory or expand our product lines to increase profits ? ® What community events or festivals would attract our trade area's audiences ? • What main street strategies would work for our market ? What wiU our community receive with our Trade Area Analysis 7 Communities can choose to receive a simple Trade Area Analysis summary, or a customized report Sim le Re ort Customized Re ort • Works well for traditional main-street markets • Works well for larger markets or those with with a small customer base seasonal or tourism business • The report will describe customers in your zip • The report is customized from addresses of code customers on local business lists • A two-hour workshop will engage community • A two-hour workshop will engage community discussion about results and future plans discussion about results and future plans • Cost : $750 • Two consultations with a local study group will guide the analysis • Cost: To be determined What else does Extension offer retailers ? • Retail Trade Analysis reports describe a town or county's retail strengths, weaknesses and patterns. • Small Stores Success Strategies Workshops help small stores survive in a big box economy. • Business Retention and Expansion programs get citiznes engaged in meeting the needs of local business. more can [ee[p your t~.ver MEMORANDUM TO: Economic Development Authority City Council FROM: Jeff Gongoll Community Development Director DATE: August 11, 2008 SUBJECT: DISCUSSION: Developrv'ent of "Gateway" Business Park and Surrounding Area PITZtI'®SE A key area of the City, including City property, is available for what many view as our next significant opportunity for effective and inspiring economic development projects. The intention of this meeting is to: 1. Seek consensus to the following. Who - do we want to market this property to? What -type of land use is appropriate/suitable? When - do we want the property to be developed in order to market it accordingly? 2. Provide an update of activities (A.) and an opportunity to re-examine the issues regarding the Gateway development site and surrounding area (B.). ~. STA'I'iJS 1. Entertainment Proposal The proposed project was originally submitted to the EDA in October 2007. In early July 2008, we were informed that the location of the project, encompassing approximately 14 acxes, has shifted east onto City property, generally Outlot C of the Gateway Business Park plat (attached). Initially the proposed site was along Highway 10. However, a site plan has not been submitted. EDAICity Council Workshop August 11, 2008 Page•2-of3 2. Land Valuation At the July 7`~ meeting, the City Council gave authorization to bite an appraiser to better understand the dynamics of this property and the marketplace. This will provide us with a stronger position for reviewing and possibly selling the property to the appropriate developer and/or development. Nagell Appraisal & Consulting is conducting the appraisal. (The EDA has previously reviewed their work through the appraisal of the Post Office property on Line Avenue). Once complete, it will be submitted fox staff review followed by a probable Executive Session meeting with the City Council fox review and discussion. In this regard, we are aware of two parties that have expressed interest in Outlot C; one in a verbal expression as "an investment," and one by receipt of a letter requesting approximately 5 acres of the northern portion of Outlot C (along 1715Y Avenue). And, we were contacted by Globe College regarding their interest in placing a facility in Elk River (requiring 3 - 4 acres). Although Gateway was not offered as a location by the City due to its light industrial/non-retail nature, a portion of Outlot C was suggested to them through a third party developer. B. DISCUSSION 1. Issues We are consequently faced with the following issues/questions to better prepare an effective and ultimately successful series of development projects that are suitable for this site in support of our growing city: - What are the goals for development (i.e., jobs, tax base, etc.)? What do we want to see here? Priorities? ^ highway commercial ^ business professional ^ service ^ light industrial - Should the property be marketed as one large parcel (e.g., with a "Master Developer"), or platted and sold as individual parcels? - How soon should the property be developed? - ®nce priorities have been established are we willing to wait for development? 2. 1715` Focused Area Study (1715ST) The Community Development department is seeking to develop a strategy to complement and Ynaximi7e the benefits of the Northstat Commuter Rail to the City. We anticipate many ancillary activities and development opportunities to occur because of this; however, a formal plan has not been formally discussed or established. The Gateway property plays a significant role in any future development in this area. Furthermore, the immediate surrounding properties can be important contributors as this area develops into a node of commerce and industry. l EDAICity Council Workshop August 11, 2008 Page-3-of3 We should also consider the impacts this area will have on the entire community and how this new transit mode can benefit the rest of Elk River. An expanded "benefit area" may include such items as satellite parking, anin~ra-city shuttle bus operation, enhanced pedestrian and bicycle paths, etc. Possible redevelopment activities may also become available along the east Hwy. 10 corridor in support of this new transit operation. If we want to proceed with this type of expanded study, the FAST could provide short and long range guidelines for development and possible redevelopment opportunities surrounding the Northstar Rail station. An effective plan will also establish expectations for land uses and design guidelines in and around the station. SUll~IMARY Effective development requires equally effective planning. Discussion and consensus of these issues will provide the direction to successfully plan, market, and develop this property. Have we arrived at a consensus of: Who, What & When? Who -big box retail, neighborhood retail, light industrial? What -highway business, community commercial, light industrial? When -now, market driven, new development, redevelopment? loText Stets With goals and priorities established, we will then be able to begin the process of preparing a Marketing Plan that can identify these priorities, offer a suggested site plan and provide an analysis of possible incentives that could be available. In order to prepare a complete Marketing Plan, certain steps will need to be fulfilled. These steps will include such items as review of the property appraisal, determining the proper land use, and establishing the associated property costs, including infrastructure improvements and wetland mitigation. This activity will be brought back to the EDA and Council for review, discussion and direction to launch the Marketing Plan. Attachments: ^ Aerial of Gateway Business Park ^ Gateway Business Park Plat ^ .Option "B" from June 11, 2007, EDA meeting. ^ EDA Meeting Minutes: Apri19, 2007 & June 11, 2007 ^ Executive Summary -Gateway Market Study, March 2007, Maxfield Research, Inc. D s~r~ 8 ~~ ~~ ~~ ~ ~ W Q W 3 a g . 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Q O 6 '~ U IC o ~~ cy U <r o I Q x I ~ 6i m z W (f) [~ r~ P~~A _-- w __ Jai C~ f~~ ~ ~V I I 1~- U 0.7 a r-~ U Q I ~ ~- - U r7 Q i a n - ~•i U Q n - ~ 1 z~ ,o ~s ~~ cp Li ~ ~ ~ ~ 4 J Economic Development Authority Minutes Apri19, 2007 Page 2 MOVED BY COMMISSIONER DWYERAND SECONDED BY COMMISSIONER MOTIN TO ADOPT RESOLUTION 07-01 APPROVING THE DECERTIFICATION OF TAX INCREMENT FINANCING DISTRICT N0.15 WITHIN DEVELOPMENT DISTRICT NO. 1 IN THE CITY OF ELg RIVER. MOTION CARRIED 5-0. 6. Other Business Mr. Clark noted that information on a proposed road alignment for TH 10 from a Mn/DOT representative was personal opinions of that person and not what is being proposed by Mn/DOT. 7. Ad~.oum to Worksession for Discussion on Gateway Business Center Development Grant Martin, Maxfield Research, Inc., provided an explanation of the study his firm completed for the Gateway Business Park. He reviewed the methodology used by his company. He stated the Park has limited market use for office and retail based on access and visibility to TH 10. Mr. Martin stated he found industrial demand for the site. He recommended 40 acres dedicated to owner-occupied industrial space and 20 acres for multi- tenant lease space. He stated the focus of the study was for the city-owned property. Mr. Barnhart stated he is looking for direction on the type of land uses the EDA would like to see for the Park. Commissioner Moon stated the access issues for this Park are not any different then the Wal-mart location. Mr. Clark stated there could be some retail in the Park but questioned how much the EDA would like to see. Commissioner Gongoll stated the surrounding properties need to be considered for development of the Park. Commissioner Klinzing concurred. She stated people shouldn't have to go through industrial properties to get to commercial properties. Commissioner Tveite stated if the EDA wants retail it map need to wait until there is more of a demand. Commissioner Farber concurred. Commssioner Dwyer concurred. He questioned if the train station was considered i_n the study. Mr. Barnhart stated he has spoken to a couple of the property owners and they are looking to put in commercial/retail. Commissioner Gongoll stated the consensus of the EDA is to see more of a retail component ui the Park. He stated he would like to see a higher level of architectural standards, some high-tech infrastructure, and a different name for the Park. Economic Development Authority Minutes Page 3 Apri19, 2007 Ms. Mehelich questioned the types of retail the IDA would like to see. Commissioners Motin and Klinzing stated they would like to see a big bog retail area similar to the Wal-mart area in IIk River. Commissioner Gongoll stated he could see it as a small boutique neighborhood center. Mr. Barnhart created a sample drawing of the land uses the EDA is requesting. Mr. Maurer stated there will be some constraints to the site due to wetlands and gas lines. Ms. Mehelich questioned how Maxfield Research, Inc., considered the viability of developing retail in this pro$imity from the rail station. Mr. Mart~ii stated the key feature they considered for the rail station is waikability. He stated if a site can be walkable, you will keep people there to utilize the retail; but once they are in the car they can go anywhere. He stated the city shouldn't count on rail as a draw for retail. Commissioner Motin disagreed with the walkability component. He stated people coming home at the end of night don't walk and shop and they don't have time in the morning to shop. He stated commuters plan their trips to the rail station to within five minutes of an available train. He stated it is not walkable from the rail station to the Gateway Business Park. Ms. Mehelich stated people catching the train will come and go in short time frames limited to the train's arrival. She questioned the support of retail businesses for the non-commuter ~i±~nes throughout the day. She noted initially there will be limited trai~a trips from the station. Mr. Clark noted there will be competition with Elk River Station and their retail development. Ms. Mehelich questioned if the study area scope was broadened to include adjacent private parcels for development, would that improve the market opportunity for retail. NIr. Martin stated it would but the city would need to improve the access to the southern portion of the site. 8. Ad~oumment The meeting of the Elk River Economic Development Authority adjourned at 6:30 p.m. Tina Allard City Clerk MEETING OP THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, JUNE 11, 2007 Members Present: President Gongoll, Commissioners Dwyer, Farber, Klinzing, Motin, and Zerwas Members Absent: Commissioner Tveite Staff Present: Director of Economic Development Catherine Mehelich, Planning Manager Jeremy Barnhart, City Engineer Terry Maurer, and Recording Secretary Jessica Miller Call MeetingTo Order Pursuant to due call and notice thereof, the meeting of the Economic Development Authority was called to order at 5:30 p.m. by President Gongoll. Consider Agenda M®VEI) BY C®MMISSIGNEIZ I~INZING .AIVD SEC®NI~EI) BY C®1bIMISSI®NEI~ ~ARI3ERTG t~PR®VE THE 1~GENI)A. MGTI®N EI) 6-0. Consider Consent Agenda la~I®vE~ ~Y CvMI~IISSI®NER mw~ER AND sEC®1v~ED sx C®MMISSI®NER F ER T® AI'PI~GVE THE C®NSENT 1~GENI)A AS FGLLOWS: 3.1. ~' 14, 2007 MINI.7'I'ES 3.2. CHECK REGISTEI~.S 3.3. BALANCE SHEET 3.4. REVENUE jEXI'ENDITiTItE I2EI'®ItT M®TIGN EI) G-0. 4. Ones e No one appeared for open mike. 5. Consider Gateway Business Center Development Contents Planning Manager Jeremy Barnhart explained that at the April 9, 2007 EDA meeting, staff was directed to develop three conceptual layouts for discussion on the Gateway project. Mr. Barnhart stated that the consensus of the EDA was that the park should have more of a retail component. Mr. Barnhart reviewed the assumptions staff made in development of the plans. Ivlr. Barnhart then presented the three options as follows: Economic Development Authority Mnutes June 11, zoo? Page 2 o- Includes avariety of lot sizes, including three big box lots (10-17 acres), three smaller commercial lots, and 9.57 acre industrial parcel in the southeast. The plan includes aright-in off of Highway 10, The smaller commercial lots are served via a `backage' road between Highway 10 and Ulysses. Option A has the greatest impact to existing wetlands, and a big portion of property west of Ulysses is used to mitigate these wetlands. An additional 11 acres of wetlands would need to be mitigated elsewhere. Option A requires the mitigation of 12.14 acres (24.3 acres). 0 tian B Shows two big box retail sites immediately adjacent to Highway 10, sized 19-28 acres. This plan provides more land for industrial sites, although any of the lots on any of the plans could conceivably be converted to industrial uses based on size. The plan also utilizes a right-in off of Highway 10. This plan has slightly reduced impact to the wedands, requiring mitigation of approximately 9.64 acres (19.3 acres). Any access off of Highway 10 would require MnDOT approval. O tx Includes small ancillary commercial lot in the NW comer, two big box lots along Highway 10, and 5-9 acre commercial sites on the east side of Ulysses. A 12-acre industrial site is located in the SE comer. There is minimal impact to wetlands (1.1. acres) requiring only the creation of 2.2 acres. This plan effectively requires the acquisition of the Weicht property. President Gongoll indicated that Commissioner Tveite was unable to attend the meeting but provided his comments via email. President Gongoll shared these comments. He stated that Commissioner Tveite's preference is Option B with the revision from "big box" to "commercial" to allow t'-ie city as much flexibility as possible to address potential users. Commissioner Tveite also prefers Option B because of the industrial presence away from the Highway and near the RDF plant. President Gongoll explained that Commissioner Tveite would like to the city to reach out to private land owners to verify their plans and see if they are willing to work with the city on land acquisition. Commissioner Tveite also noted in his email that even though the market survey wasn't optimistic about commercial/retail along Highway 10, he believes the highway offers an asset down the road (i.e., 5 years) and he would want to keep an eye towards this use fronting the highway. President Gongoll concurred with Commissioner Tveite's comments. Commissioner HIinzing stated that Option B best reflects what she would like to see. She believes the area will be valuable for commercial and likes the size of the lots. Commissioner Moon questioned if staff could check with Cargill and see if they are interested in developing their portion of the neighboring property in the future. He stated that he was leaning towards Option A but has no problem with Option B. President Gongoll indicated that he believes the best option is for the city to have discussions with the property owners to see if they are interested in selling. I-ie stated that if the city owns the property then the city has the flexibility of when the property is developed. Mr. Barnhart stated he felt that single ownership was necessary for the efficiency of the development. He noted that if the city purchasing the neighboring land is not an option, the city map want to consider selling their property to a neighboring landowner in order to create a larger parcel. Economic Development Authority Minutes June 11, 2007 Page 3 Mr. Barnhart verified that the EDA indicated a preference for the land layout in option B. He indicated that based on the EDA's direction, staff will begin. discussions with neighboring property owners regarding land acquisition. Commissioner Moon noted that staff should also initiate discussions with Cargill. He added that he is not interested in the city land being bought out unless strict development restrictions are placed on the land in order to control project quality. Mr. Barnhart questioned the EDA's timing goal for opening of the Gateway project. President Gongoll stated that the roads and utilities could be constructed and the market could dictate the rest., but agreed that these improvements not be made by spring 2008. The EDA concurred to wait for. the market/development before moving dirt, but have preliminary plans ready to go. 6. U--~. date on Downtown Redevelopment Plan Taskforce Director of Economic Development Catherine Mehelich provided an update on the Downtown Redevelopment Plan Taskforce meeting. Ms. Mehelich explained that at the last meeting, a large group visioning took place. She reviewed the proposed timeline as follows: ® June 25 - Taskforce's first review of draft plan ® July - Taskforce's final review of draft plan ® August -Plan distributed to boards and commissions for comment ® September -Three open houses held to gain public input October/November - Taskforce review input received from boards/commissions and public ® December - HRA and Counc>7 adoption of plan Ms. Mehelich outlined a few of the items identified by the Taskforce as part of the plan: 1. Revitalize and strengthen residential housing areas adjacent to the downtown. 2. Enhance the connection to the river. 3. Redefine core downtown from the traditional retail focus to improve economic success. Look at other market opportunities like residential and specialized commercial to strengthen the area. 4. Identify different land uses for north of Highway 10 to help maximise the market opportunities but not compete with the southside of Highway 10 and the core downtown. Other Business Ms. Mehelich indicated that Alliance Machine, 17520 Tyler Street, is having an open house on June 13 from 1:30 to 5:30 p.m. to celebrate their new building. 8. Adjournment There being no other business, President Gongoll adjourned the meeting of the Elk River Economic Development Authority at 6:14 p.m. Minutes prepared by Jessica Miller. An 1~nalysis of the li~Iarket Potential for Retail and Industrial Uses at the Gateway Business Center in Elk River, Minnesota Preparea' fvr: City ®f Elk Rivcr Elk River, Minnesota Mich 2007 615 Karst Av~ue 1~ Suite 400 1Vlinneapolis, IVIlvT 55413 612.338.0012 F.XECiJT1VE SUNIldIARY Intr®duction Maxfield Reseazch Inc. was engaged by the City of Elk River to conduct mazket reseazch and provide analysis regazding current market conditions and the potential demand for retail and industrial space at the Gateway Business Center. The scope of this study includes an assessment of the Gateway Business Center as a site for highway retail and light industrial uses; an analysis of the relevant demographic growth trends and characteristics affecting retail demand and industrial demand in the area; an assessment of retail and industrial development trends and current mazket conditions; and a projection of demand for these uses that could potentially be captured by the Gateway Business Center. It~ta~ C®ncl~asi®a~as The following bullets s»mmarize our findings for retail uses at the Gateway Business Center. ® The parcels designated for retail use at the Site suffer from access and visibility issues. The northwestern portion of the Gateway Business Center would have better access, due to its proximity to 171st Avenue, but visibility is less than desirable because of the distance to Highway 10. This area might have some marketability for destination retailers. However, because there are several developable parcels in the immediate area that have better visibil- ity, retailers would be more attracted to these sites. 'The southwestern portion of the Gateway Business Center would have good visibility from Highway 10. However, the access is poor. Customers would have to exit at 171st Avenue, continue south on a proposed connector road, and finally tum down an access road or cut- de-sac. We believe retailers would find this access too burdensome for customers, making these parcels uncompetitive in the market. If access could be improved through the devel- opment of an intersection at 167th Avenue, this parcel would have better market appeal. d The retail market is strong in the Elk River Market Area, primarily driven by household growth. The overall vacancy rate for competitive properties is about 10%, which is comps rable to the northwest Metro Area as a whole. ® Most potential retailers, however, would prefer to locate along the Highway 169 retail corridor north of the Site. ®ther competitive sites in Ramsey, Otsego, and Rogers would also impact demand at the Gateway Business Center. The overall competitive market fur- ther reduces demand at the Site and ultimately would result in lower lease rates achievable at the Site. Based on our Site analysis, demographic analysis, competitive market analysis, and inter- views with retail brokers, we find demand for about 4,000-square feet of additional retail be- tween 2008 and 2015. MAA'~j„v jSESEARCH INC. EXEC~JTNE SITNd1VgARY DEMAND SITbIl4iARY ADDITIONAL DEMAND FOR RETAIL AND INDIJSTRIAL SPACE GATEWAY BIISINES5 CENTER ELK RIVER MARCH 2007 .. 3'1~~4, ro 2015 Total Annuall Retail Buildings City of Elk River 376,300 Sq. Ft. 41,800 Sq. Ft Gateway Business Center 3,800 Sq. Ft 400 Sq. Ft Total Annuall Industrial Buildings City of Elk River 784,800 Sq. Ft. 87,200 Sq. Ft Gateway Business Center 259,200 Sq. Ft. 28,800 5q. Ft Industrial Aereage City of Ells River 106.0 Acres 11.8 Acres Gateway Business Center 35.0 Acres 3.9 Acres * Data is summarized from demand calculations shown in Tables 10 and 21. Data is adjusted slightly to make time comparisons the same. Source: Maxfield Research Inc. Ind»~rial ~~nclusa~ns The following findings summarize our conclusions on industrial space demand at the Gateway Business Center. ~ Overall, the Site has excellent qualities for industrial use. llt has excellent access to highway 10, a key feature that industrial businesses would consider to be desirable. ® The surrownding uses are compatible with industrial uses. In addition, the Site's proximity to the proposed Northstar Commuter Rail station would expand the potential labor pool for employers located at the Gateway Business Center. MAXFEELD RESEARCH INC. ll EXECUTYVE SUMMARY - The one issue that would make the Site less desirable for industrial space users is the dis- tance-to Interstate 94. This fact will segment the mazket for industrial users, and make the Gateway Business Center site appealing to certain types of industrial users, similar to the ex- istingmix of industrial users in Elk River currently. - Industrial employment is projected to be strong in the region, especially in the Construction, Wholesale Trade, and Transportation sectors. This projected growth will continue to drive demand for industrial space in areas with access to the State's transportation system. - Employment growth in Elk River has been steady. ®ver 2003 and 2006, Elk River added several new industrial businesses, almost all small manufacturers, with about 200 new jobs added. - Manufacturing employers are attracted to the quality labor force, good access to the trans- portation system, lower land prices, and the availability of larger lots for potential expan- sion. We believe that, even as manufacturing becomes a smaller part of the overall regional economy, Elk River will remain an attractive location for these employers into the next dec- ade. - The industrial market in the northwestern Metro Area is strong and is improving. Between 2005 and 2006, we estimate that about 1.8 million-squaze feet of industrial leased space was absorbed. ®ver that period, the vacancy rate in the sector declined from 10% to 7.5%. The industrial space market in Elk River is relatively strong. Affordability and availability have driven industrial development in Elk I~.iver, where other azeas of the Twin Cities hive struggled due to higher land costs. The Elk River multi-tenant market is chazacterized by newer facilities that are still in their lease-up phases. These newer facilities tend to have higher vacancy rates than the overall market. The industrial land market has also been rela- tively strong; we estimate that between 2003 and 2006, the average absorption was about 67,500-square feet of industrial building space for owner-occupied industrial land. - Based on our Site analysis, demographic analysis, competitive market analysis, and inter- views with industrial brokers, we project that annual industrial land absorption in Elk River will be about 11.8 acres per year. We believe the Gateway Business Center could capture about one-third of this demand, or about four acres per yeaz. ~~®~nd~~®n~ Based on our analysis, we do not recommend traditional retail uses at the Site. 'The access, visibility, and competitive market issues dictate that retail would struggle to fmd a market. We recommend a mix of traditional industrial space (office warehouse, manufacturing) with more non-traditional industrial space (office showroom, flexible office/warehouse). We recommend that the more traditional industrial space be located on the eastern portion of the Site, in the area currently being designated as light industrial. We recommend developing the non-traditional industrial space adjacent to Highway 10, where there would be better visibility. This western Mein ~sE~.tc~ nvc: ~~~ EXECU~'IVE SUNIlVIARY azea is also adj scent to properties on Highway 10 that would likely be developed as retail in the future. We believe this strategy would provide the best opportunity to capture the spectrum of the mazket, from manufacturers and transport firms that have traditionally operated in Elk River to smaller distribution wholesalers and retailers who may want a more flexible space that better caters to their business. The table that follows shows our proposed development concept. The (Gateway Business Center is divided into two azeas, one with single-user, owner-occupied parcels and the other with three multi-tenant, leased industrial buildings. RECOIVIl4IENDED DEVELOPMENT CONCEPT GATEWAY BUSINESS CENTER ELK RIVER FEBRUARY 2007 ~a.~- '~rtat r ~ad j~ .~~~ r~g Bui7d i ~.ahcl.Ip~e` ~d r i~.;~ F ' Lot # 1 3.0 130,680 20,000 - 25,000 $2.50 $326,700 Lot #2 3.0 130,680 20,000 - 25,000 $2.50 $326,700 Lot#3 3.0 130,680 20,000 - 25,000 $2.50 $326,700 Lot #4 3.0 130,680 20,000 - 25,000 $2.50 $326,700 Lot #5 3.0 130,680 20,000 - 25,000 $2.50 $326,700 Lot #6 3.0 130,680 20,000 - 25,000 $2.50 $326,700 Lot #7 4.0 174,240 25,000 - 35,000 $2.50 $435,600 Lot #8 4.0 174,240 25,000 - 35,000 $2.50 $435,600 Lot #9 4.0 174,240 25,000 - 35,000 $2.50 $435,600 Lot#10 5.0 217,800 35,000 - 45,000 $2.50 $544,500 Lot#ll 5.0 217,800 35,000 - 45,000 $2.50 $544,500 Total 40.0 265,000 - 345,000 e ~ ~sa V :r~.r -° ~ ~~~H@~~~9cC C~L ~aT`t~@ : ~ ~ ~ L~ "5~~~~~_ ~ : .~iTi ~ , I gy ~ I 9 Building #1 b.7 290,400 40,000 - 60,000 $2.50 $726,000 $10.00 $4.50 Building #2 6.7 290,400 40,000 - 60,000 $2.50 $726,000 $10.00 $4.50 Building #3 6.7 290,400 40,000 - 60,000 $2.50 $726,000 $10.00 $4.50 Total 20.0 120,000 - 180,000 Solace: Ma~ield Research Inc. MAI~FYELID RESEARCH INC. iV eTrends Newsletter Mehelich, Catherine Page 1 of 4 ~~ From: Enterprise Minnesota [reply@enterpriseminnesota.org] Sent: Wednesday, July 30, 2008 10:56 AM To: Mehelich, Catherine Subject: eTrends Newsletter v~ ~ ~' v A NuBL,i~~.~rica~r ~F ~~~~~~~1> h4i hJ t~J E ~C~T~a ~-l~i~,~:r;; i~r'9~tnt~~a~t=tr~n~; L-t~~t~r(~ i~~s- ~.rr>>~. ~'re~ri-,:`:;;; :: Enterprise Minnesota Launches New Future at Kick-Off Event :: The Latest :: Minnesota Business Leaders Discuss Supplier/OEM Relationships :: TWI Helps Superior Industries Improve Efficiencies & Culture Enterprise Minnesota Launches New Future at Kick-t"~tf Event On June 16, more than 300 friends and clients of Minnesota '! Technology, Inc. gathered on the I campus of the University of St. Thomas, to help re-inaugurate the company as "Enterprise Minnesota." Bob Kill, president and CEO of Enterprise Minnesota, told attendees that the name change reflected his company's sharpened focus on helping manufacturers compete and grow profitably. 'Today's manufacturers compete on a landscape that requires k innovation," he said. "Enterprise Minnesota helps them develop and apply strategies to keep competitive -and further position themselves for growth." Minnesota's manufacturers have never been more essential to a prosperous state economy, Kill said, and Enterprise Minnesota is committed to helping them grow. Since 1991, Enterprise Minnesota has advised more than 6,700 Minnesota manufacturers, adding $232.7 million dollars to their bottom lines, and helping to add or retain more than 10,000 '': jobs. "It is inevitable that manufacturing will continue to change, but we hope to be in-front providing the resources to help them adapt and grow," he said. Minnesota Technology was chartered by the state legislature more than 20 years ago, to help companies in Greater Minnesota apply and commercialize technology products. But today's hyper competitive global '? marketplace requires manufacturers statewide to have access to high The Latest News and items of note • State EcpnomY: Minnesota gained jobs for the second consecutive month in June, with employers adding 3,400 positions on top of the 2,500 jobs that were created in May, according to the Minnesota Department of Em.ployment._and.._~cono m ic.._Dev_.elopment (DEED). Manufacturing added 1,300 jobs during June. • New Contract: The United States Air Force recently awarded a Sounding Rocket Program Three contract to Rlliant_ Techs}~sfems_of Eden Prairie, MN. The contract has a potential value of $250 million. Aliiant Techsystems will provide provide launch vehicles and engineering and integration services for intercept systems and atmospheric sounding rocket experiments. • New Partnership: St. Paul based Ecawater, a manufacturer of residential and commercial water treatment products, recently selected Clonnel..ly_Custom_._Manufiacturing, based in Alexandria, as its short run supplier of molded parts. According to press statement, EcoWater chose Donnelly due to its expertise in short run manufacturing, project management and large takeover projects. • New Facility: Productivity Inc, the Midwest's leading distributor of machine tools, has expanded its facility in Plymouth to 8/4/2008 eTrends Newsletter level information and sophisticated training that goes well beyond technology, Kill said. Their needs extend from adapting lean operations, to improving supply chain relationships and methods, workforce planning, and other strategic guidance. Minnesofia Business Leaders Qiscuss Supplier/0EM Relationships Improving complicated supply chain relationships is not as simple as improving price and delivery said a group of business leaders on July 16th. More than 70 people from nearly 30 manufacturing firms turned out for a morning event at the University of Minnesota as the panel of experts discussed supply chain relationships. Using their perspectives as OEM's, suppliers, and business consultants, experts discussed improving supply chain relationships. It is an often- challenging relationship, with OEMs making demands and suppliers feeling pressured. The relationships are dependant on quality, cost, innovation and financial management. Each organization needs to evaluate their supply- chain relationships constantly to ensure that it is still mutually beneficial. Remmele Engineering CEO Rich Pogue said that, in choosing relationships, it requires a focused approach that, "is more like a rifle than a shotgun." While there is not a silver bullet to improving OEM/supplier relationships, speakers agreed that it is a process of continuous improvement. However, gains there are great gains made by relying on innovation, communication, strategic partnerships, and cooperation. The event presentation materials and photos are available online at vtr.w...v~::ente.. rpriseminne._sotaorg. -f1Nl Helps Superior industries Improve Efficiencies & Culture Success Stories: Enterprise Minnesota highlights one of our client's successes in improving their business Located 165 miles northwest of the Twin Cities metro area in the town of Morris, Minnesota, Superior Industries is a 300 person company that produces conveyor, idler and pulley equipment for the transportation of heavy materials and products. Superior Industries does not always have a large pile of outside applicants for supervisory positions within the company. The people already employed with the company are oftentimes put into supervisory positions and they don't have any training or experience with managing people. The problems, says Stan Wulf, director of continuous improvement for Superior Industries, ranged from an inability to analyze all of the information in a situation to approaching workers in the wrong way, both of which led to disagreements- and more stress-in the workplace. To alleviate these challenges, Superior Industries engaged Enterprise Minnesota to train their employees in TWI. Wulf estimated that Superior Industries first began training its supervisors in the Job Relations segment of the Training Within Industry (TWI) method nearly a decade ago. The program has been kept as a Superior Industries training staple ever since, and was most recently used in March of 2007. i While Superior Industries incorporates many different kinds of training into its efforts to cultivate effective and supportive leadership, the practical Job Page 2 of 4 accommodate the growing needs of its business. The expansion includes the addition. of a new building, additional offices in the adjacent building, and renovation of the current facility. Productivity expects the new space will allow more machines on the showroom floor for display and demonstrations, a house a rotary table repair bay, and room for future growth. • Notable News: Fortune Small Business Magazine announced five Minnesota companies made the 2008 list of America's 100 Fastest-Growing Small Public Companies. Rochester_M..edical_Corp of Stewartville, a manufacturer of latex-free urological care products ranked 16th. Arden Hills based .IntriCon_Corp., adesigner of parts for hearing aids, ranked 22nd. WSI Industries Inc. of Monticello, a precision machining manufacturer, ranked 43rd, and Norkech. Systems., a Wayzata based electronics manufacturer, ranked 100. • New State Program: The Minnesota. Department__of_Employ ment._and._Economic Development...(DEED) has launched a new Office of Science and Technology (OST) to guide newer Minnesota companies to funding sources, collaborations and potential business partners. Gov. Tim Pawlenty proposed the OST as part of his Strategic Entrepreneurial Economic Development (SEED) initiative, a comprehensive program to stimulate rural economic development. Officials hope the office will lead to the emergence of other high- tech and science clusters similar to the state's highly successful medical device sector. • Acquisition: Andersen Cor orp atian recently announced an agreement to purchase Silver Line.BuildingProducts._Corporatign_, the leading manufacturer of vinyl windows and patio doors in North America. Founded in 1947, Silver Line is a privately-owned company based in New Jersey, with additional facilities in Massachusetts, North Carolina, Georgia, Ohio, Texas, and Illinois. Upcoming Events: Generating New Ideas, Business, and Revenue Wednesday, August 13, 8:00 - 10:30 a.m. Location: Unisys Roseville, MN Cost: $59.00 Learn to generate ideas that will grow your business. Come hear John Connelly, director of product management at Enterprise Minnesota, discuss how to grow ideas and revenue in your business through Eureka! Winning Ways. This is the only program of its kind that has been customized and refined specifically for U.S. smaller manufacturers, and is making a dramatic difference in how companies are growing. Register online at www.enterprtseminne sc?ta..org or call 612.455.4239. Strengthening Your Supply-Chain Relationships: An event presented jointly by Enterprise Minnesota and LifeScience 8/4/2008 eTrends Newsletter Relations has remained a rite of passage for new supervisors. "It's effective training to get supervisors up to speed," Wulf said Participants have responded very favorably to Job. Relations sessions over the years, Wulf said, due to the real-world relevance of the lessons learned. "Sometimes, a lot of other training is good information, but when it comes to applying that information, there is a disconnect," Wulf said. "One of the individuals who went through Job Relations said, 'That's the best training I've ever had,' because they could see how they could apply it." Wulf said the benefits of Job Relations are at once intangible and invaluable. Because supervisors are now more knowledgeable about ways to effectively manage and work with people, the relationships among supervisors and their teams, which range fram 10 to 20 people, have improved. So, too, have relationships between the supervisors themselves. "With all of our supervisors going through that training, there is a consistent language that they can talk about," Wulf said. "When one person talks about gathering the facts and evaluating and weigh and decide, they all understand." Wulf is certain that these improved relationships have increased efficiency on the shop floor since the training began. "We have a strong belief that when you have good relationships and good teamwork and good people development, the increase in productivity is going to follow," he said. In 2006, the campany opened a new manufacturing location in Prescott Valley, Arizona. Referred to as their Southwest Division, the Arizona building is already being expanded to twice its original size. Wulf is working to ensure that Job Relations will always be a part of supervisor training, even as the company grows. "We see our people much, much more capable and more effective in managing people," he said. "Job Relations has been a piece of the puzzle that has made that possible." Learn mare at_vaww.enterpriseminnesota_org. Page 3 of 4 AIIey Wednesday, September 10, 2008 3:OOpm - 4:OOpm Grey Plant Mooty Law Offices St. Cloud, MN Cost: $59 Early Bird; $79 Standard {Registrations received after September 3rd) As pressures continue to mount on OEMs and suppliers, both are recognizing that speed and flexibility are the keys to reducing supply chain risk. Come learn from John Connelly, director of product management for Enterprise Minnesota, about Accelerate! It is a new supplier development initiative designed to build on continuous improvement processes. After the presentation, participants have an opportunity to meet and discuss with their peers at the quarterly Alley Chats Networking Event. Register online at either wwwlifes..cerscealley.,org._or www.enterpriseminne sota.org 19th Annual LifeScience Alley -Alley Institute Scholarship Golf Tournament September 8, 2008 Golden Valley Golf and Country Club www.l ifescien ceail..e..y. org. MPMA Motorhead & Night at the Races Sunday, August 10 Raceway Park, Shakopee 3:00 - 7:00 pm: Car Show 5:30 pm: BBO Dinner 7:00 pm: Races Start uJU~~nf m prrr..a..._ co m. 53rd annual Printing Industry MN golf tournament August 7, 2008 Majestic Oaks Golf Club, Ham Lake www.pi mn.org Do you have news or events to submit? Email them to Hate.duos@enterpriseminnesota.org or call 612.455.4213 email: repy@e._n...terpris...eminnesota.:org ~&nb sp; phone: {612) 373- 2900 ~ web: http;lfwww:._enterpriSeminnesat~._org Forward email ®SafeUnsubscribe ~ This email was sent to cmehelich@ci.elk-river.mn.us by reely@enterpriseminnesata.org. Update ProfillEmail Address ~ Instant removal with SafeUnsubscribe'"" ~ Privac~Pol.ic~. Emai! Marketing by 8/4/2008 ` Where the jobs are -Sherburne County, MN (22) -Money Magazine Page I of 2 \Y. \ r ,~ ~~,:~~, G~-f U.JR LOWEST RATES `~`H '"~` 5 ~"~ C~STI'~STERN.COM- GUARANTEED. Subscribe to PAoney Symbol ~ ~ ~..r~~ Keyword -->-r~ ~ FreeTrlal ' Magazine Customer Service Hor ~e- Business News PAarkets Personal Finance Real Estate Technology Small Business Luxury Fortune h9y Portfolio CNN.com Where the jobs are 22. Sherburne County, ~N Towns include: Elk River Jab growth (2000-2007): 35.73°/~ Capturing the runoff from nearby PJiinneapolis; Sherburne County is undergoirig residential expansion and growth in the retail, food, hospitality and health care industries. u; 22 of 25 ~, '''~ ~'~ :~ Large companies are attracted to the area -Target and UnitedHealthcare 11ave invested more than 5250 million in data centers in the area town of Elk River -while the county offers a cushy place for new companies to grow, with business development assistance and reasonably-priced commercial and industrial land. --.A.C. NEXT: Prince William County, VA ,~~ ~F II ~ ~~ '~~ ~ i. ~-... ' ~ r --,~! Mane ~i ~.. Columbia ... St. Johns... vnd Coun... Shexuunie._. Prince vJi... Yavapai C... Fort Bend... Last updated Juiy t , 200t!~ 1 1:1 r AM ET Ernail ? Pdnt ~ Digg this story I Sponsored Links Mortgage Rates Drop -Fed at 2 $200,000 loan for $706/month. Free Quotes - No SSN Rqd. Save $1000s! Mortgage. 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Alternative to Open Back Surgery The World Leader of Arthroscopic Procedures for Back and Neck Conditions Buy a link hei Home Refinance: Fed at Z°1° 160,000 Mortgage for $633/mo No SSN rqd. Free Quotes! Low Fixed Rates! Mortgage Rates Drop -Fed at 2% $200,000 loan for $70S/month. Free Quotes - No SSN Rqd. Save $1000s! Buy a link here 2003 Cable News Netv.~ork. A Time 1Narner Company. AI! Rights Reserved. Terms under which this service is provided to you. Privacy Policy Home Portfolio Calculators Contact Us Newsletters Podcasts RSS Mobile iNidgets Press Center Site Map User Preferences Advertise with i/s Mega>ine Customer Service Download Fortune Lists Reprints Career Opportunities Special Sections Conferences Business Leader Council Live t~uotes automatically refresh, but individual equifies are tlelayed ? 5 minutes foe Nasdaq, and 20 mimrtes (or ciher exchanges. tvtarkei intlexes are shown in real time, except for the CJIA, which is delayed try two minutes. Afl rimes are EL Tim=: reflects local markets trading tine. f -intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer http://money.cnn. com/galleries/2008/moneymag/0807/gallery.bplive_j obgrowth.moneyma... 7/22/2008 ~: Best places to live 2008 -Elk River, MN -from MONEY Magazine Page 1 of 3 ~e c~r~~wait ~tMl Subscribe io Money t . C.r0lylfl°" Svmbol keyword °: Free Trial _ _ Magazine Customer Service Hama business News Markets Personal Finance Real Estate Technology Small Business Luxury Fortune tvly Portfolio CNN.com Find Your Best Places Morse BEST PLACES TO LIVE y`sfistofAmerica'sbestsma!/cities Zoos Region i ~ Northeast South Full List Near You Housing Financial Quality of Life ,_ ~! Midwest ,~ West Ranking Top 100 winners only Elk River, MN p l ti opu a on " CITY STATS ta,Y5 % 8.3M Top 100 rank: N/AC 168 Home Prices Population: 22,200 zow median sal°° pdoes as"56K $1.8941 Compare Elk River to Top 10 Best Places E;k Rives •' Add options: schools, weather, more i d Financial City scats aest places avg. - Median family income $79,028 $93 075 36 (oeryear! , Family purchasing power $76,726 $64 780 r tannuai, cost-ni :wing aUJusted) , Sales tax 6.50 % 6.60 % atscyo .Map data.©2608 Tefe Allas - ~ i~~g~15e State income tax rate 7 85%t 5 17 % Clink map to enlarge Show: Homes for sale (Million-dollar homes m hest bracket) ( g ~ . . ~ Top companies ~ Colleges I Hospitals Museums ~ Wineries I Gardens I Ski resorts State income tax rate 5 35%I 2 43% powest bracket) . . See Elk River in... Auto insurance premiums $1 590 $1 791 V;veragc for n.e state) , , ...Featured Places Job growth % (ZQ~JC~-2007) 44•pg% 16.72% (1 oft) Housing Citx stars nest ptac~ avg. - t<n~ ~ f? ,~. Sponsored Links Median home price $209,500 $291,949 C ? - -~"~~ ° Mortgage Rates Drop -Fed at 2°/a n for $708/month. Free Quotes - No SSN Rqd. Average property taxes 780 $2 686 $3 ~ _.. ~ Sae $1 OOOs (2pi)?) , , _.. Where the jobs are See Elk River homes for sale Especially in a tough economy, plentiful Free Streaming Quotes job opportunities are key to being a great $7 Stock Trades, Unlimited Shares. Open an Account Online. See million-dollar homes place to live. These 25 counties Nava eeperienced the most job growth over the last seven years. Auto Insurance Quotes Education city stars sere places avg. See them all Save Hundreds In Minutes w/ Fast, No Hassle Auto Ins From The HaAford Colleges, universities and professional schools (within 30 milesl 26 49 ..What Readers Say ~ Trump Real Estate School Junior colleges and 21 25 They speak out on Elk River and other Train Online To Master The Real Estate Investing Game. Enroll Online! technical institutes (within 30 miles) places ... _.. .. .... Buy a Ilnk here Test scores reading ° 14.3 % 17 3% Good to see much of Johnson r .•a abovarbelow state avera9el . County Kansas represented in the Search b Clt or state top 100. A... Y Y Test scores math tb t°b t l -2.6% 16.8 % ~ _ City ~ ~ State Select a tove ow averayel e students attending publiGprivate So you basically chose al! the places schools ilacated within trnvn Limits) 91.2/7.2 89.0/11.0 no one wants to 6ve...Makes s... Video i<d5) Quali of life ty City stets Best places avg. / Hafe MCKinney,Texas Air quality index' N A o 75 9 /o (% of days AQI ranked as good) . . . Have your say Personal crime incidents iper 1,000) 23 2 Nearby... http://money. cnn. com/magazines/moneymag/bplive/2008/snapshots/PL2718674.htm1 7/22/2008 Best places to live 2008 -Elk River, MN -from MONEY Magazine F Property crime incidents (Per 1,000; Median commute time (in rr~inutesi population with commute 45 mins.orlonger population walk or bike to work Leisure and culture Movie theaters ;wiinirt i5 rnilesl Restaurants (wiinin 1.5 rnilesl Bars (witlTin 15 miles) Public golf courses ~uiittin 30 miias) Libraries {N'ithln 15 1T:IiHS) Museums (ac:::cdited bV AA.M; .•nthin 30 milCS} Ski resorts (w tin 100 miles'; Arts funding tDoilars per person of state funds spent on arts) Weather Annual rainfall (irchesl clear days in the area High temp in July ° F Low temp in Jan ° F Health* Has health plan (°,-o of residentsi Body mass index (avg. for residents) Diabetes rates (°~a c''rasidents diagnosed) Hypertension rates (°M of residents diagnosed) - Meet the neighbors Median age Completed at least some college ( ~~~ of residents) Married Divorced Racial diversity index (100 is national average; L-ighar numbers in:licate greater divaisityl Amount spent on vacations tdomestic and foreign, household a~ro. oer +aarl From the August 2008 issue 263 25 PLACES COMPAN=-ES HOMES 25.7 23.0 Sae cPy stats Ccmpara Ramsey, MN 21.9 % 15.7 Andover, MN 1.8% 3.0% Champlin, MN City sKats aest paces avg. Maple Grove, MN j 12 61 Coon Rapids,MN (] Brooklyn Park, MN 'u 796 4,094 Blaine, MN 85 408 tic J::rtipa~~ 214 316 Feedback on the Best Places 21 89 to Live list? E-mail the editors 5 13 ~ '~ ~+" ": l ~~ `~ 14 33 ..-l Ltl.Jt Information powered by OnBoard LLC 2.1 1.5 Some data may be provided courtesy of its partners. City sYats Best paces avg. ~ ~ ~~~~~~~~1~ fi ~~ 29.26 36.17 r BestPiaC~s Additional data and consulting services 26 30 Provided by Bert Sperling's bestplaces.net. 82.3° 87.8° ~~~~~ -0.1° 22.9° ~ rasa . ~ate~dr~=, Homes for sale provided by Tndia Real Estate Search. City stars Best maces avg. 92.1 % 88.3 2s z7 12.0% 9.6% 26.1 % 27.2 City stars Best piaexs avg. 33.5 35.9 71.6% 73.7% 62.3% 57.5% 6.9 % 8.3 % 13.8 104.2 $7,521 $8,007 Notes: ' County data *' State data (3) Crime incidences are estimates based on FBI 2006 Universal Crime and incidence reports, OnBoard analysis. (C) =Only cities with populations between 50,000 and 300,000 were eligible for this year's Best Places to Live list. (I) Income tax notes: Page 2 of 3 Why ~~trpp~~.. ~ ~. Fort } ~ , ,;, > ~; ~~ ',nom #, i :~ ~! ~ ~~ ~+wy.%::.~~n sill fM I,I y~f~~yu , '~ ,., End: _.Y. F~. v N i ~~ Collins is a natural pick Green-minded residents love this Colorado ciiy, no. 2 on hlaney's Best Pisces to Live list, where you aan borrow a bike, and enjoy the nearby mountains. Watch i feport /Stt i[C: RJI L Is your town a great place to live? Do you live in a great place? Does your city have great cafes and culture? Lovely affordable homes? Low crime and a thriving downtown? A thriving local economy? Amazing neighbors? Show us why your town is remarkable: Send your photos and videos, and they could be profiled in an upcoming story. Top 3 TOP EARNING FOR SINGLES, AFFORCABLE CITIES O`JER 3n HOMES CICy Median Income New Canaan, CT $231,138 Darien, CT $218,130 Lake Forest, IL $212,122 See the rest How we picked the Best Places Using statistics from data provider OnBoard and consultant Bert Sperling of BestPlaces.net, we crunched the numbers in order to zero in on America's best small cities for families. (Last year, we looked at small towns, with populations between 7,500 and 50,000.) More Special Offer: ~ ~~~ r , t ; ~ *: r A ~a'rratac. It§tt i„ ~~ Name ';~t~~. ". ~ ,~ 'Address ___r_ _ ... city ~) ` State/Pr ~ 2ip/Postal E-mail_.._____.~ ., . ', ror!LIR~-R. Privacy Policy http : //money. cnn.corn/magazines/moneymag/bplive/2008/snapshots/PL2718674.htm1 7/22/2008 Best places to live 2008 -Elk River, MN -from MONEY Magazine Page 3 of 3 17 states have statutory provision for automatic adjustment of tax brackets, personal exemption or standard deductions to the rate of inflation. Massachusetts, Michigan, Nebraska and Ohio indexes the personal exemption amounts only. The tax brackets reported are for single individual. For married couples filing jointly, the same rates apply for income under $31,150 to over $123,751. A 6.4 % AMT rate is also applicable. These states allow personal exemption or standard deductions as provided in the IRC. Utah allows a personal exemption equal to three-fourths the federal exemptions. Sponsored Links Investing With 15 % Return Invest in Medical Imaging Device & Earn a Monthly Income: Min Inv. $25K Directln vesti ngGroup. com What's your credit score? The U.S. Average is 692. See your 2008 report and score now for $0! FreeCreditReport.com HARP Auto Insurance Quote Over 50? Save $385 No Hassle Auto Ins Quotes with AARP & The Hartford AARP.TheHartford.com Buy a link here 2009 G.ibie News Network. A Time learner Company. AI! Rights Reserved. Terms under which [his service is previdad to you. 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AO Times are ET.Intraday data nrrnidcd ny Interactive Dad Real•Time Services and sutjr:~^.f to ttrc, T rms of Uso.Hisiericai, current end-ot-day data, and splits data provid,^d.by Inisractivr: Data Frcing and Reference Data.Fundamental t;ata provided by Hcros;x~tt.SEC Filings data provided ty Edgar Online ':nc..Earnings data provided uy FactSet CaliStreet LLC. 7/22/2008 http ://money. cnn. com/magazines/moneymag/bp live/2008/snapshots/PL2718674.html