6. EDSR 09/10/2007ITEM # 6.
MEMORANDUM
TO: Economic Development Authority
FROM: Heidi Steinmetz, Assistant Director of Economic Development
DATE: September 10, 2007
SUBJECT: Discuss Restaurant Recruitment
Attachments
• 2004-2007 Economic Development Strategic Plan action steps
• Restaurant Marketing Plan
o Draft Community Movie Showcase Agreement
• Example of a restaurant's trade area criteria: Houlihan's
Background
The Economic Development Strategic Plan provides a framework for the EDA and City
Council to work within and provides staff clear direction on the EDA's priority goals and
projects. Below is a history of the Economic Development Strategic Plan:
• 1997-original Strategic Plan was developed by a variety of community leaders
• 1999-the Strategic Plan was updated by the EDA, HRA and City Council
• 2004-the Strategic Plan was updated City Council, HRA, EDA, and EDA
subcorrunittees (Incubator Advisory, Finance, Marketing)
Staff has utilized the attached action steps in order to guide the implementation of the
2004-2007 Strategic Plan. The primary goal was to increase the City's industrial tax base.
Per the EDA's discussions over the past year, it appears that the EDA wishes to refocus its
Economic Development goals to more commercial development (restaurant development in
particular). Due to this refocus and since the current Strategic Plan expires soon, the EDA
may wish to discuss their desire to update the Economic Development Strategic Plan later
this year.
Issue
Staff understands that the EDA wishes to attract more restaurants to Elk River. Marketing is
one component of restaurant recruitment. Other components to restaurant recruitment are
Discuss Restaurant Recruitment
September 10, 2007 EDA Meeting
Page 2 of 3
the creation of a daytime population and white-collar jobs. For example, restaurants locate
within communities based off of certain market supported criteria. As shown in the example
below, Houlihan's Restaurants, Inc. has trade area criteria that a community must meet
before Houlihan's decides to locate there. The below chart provides a general idea of how
Elk River may fit within certain criteria, using Houlihan's as an example. The information is
based on a 5-mile radius with Elk River located directly in the center, however depending on
where a restaurant may wish to locate within the City, the numbers may change slightly.
Houlihan's Criteria Elk River
Population Density 150,000 people within 5 miles 84,504 people within 5
miles
Affluent Households 40,000 households with annual 10,141 households
household income greater than with incomes greater
$60,000 within 5 miles than $60,000 within 5
miles
White-Collar Employment 20,000 daytime employment 18,861 total workforce
(business lunches and happy hours) within a 3 mile radius (blue &white-collar)
within 5 miles
Specialty Retail/Lodging mid-scale hotels, specialty retail, Movie theater, big box
designation entertainment retail, hotels &
downtown ark
.:J_J L.. /__ .... ~.... AA..~L.11
Source: Houlihan's Website and MN Uemograpnic center a~ u.~. e,ensus oureuu ~yrunuc~ ~y ..~~~~~~~~~ ~~~~~~~~i
If the EDA wishes to focus on the marketing component of restaurant recruitment, it is
important that a restaurant marketing strategy is developed to ensure marketing funds and
efforts are effectively utilized rather than on a "shotgun" approach. Four key discussion
points that will help frame this strategy are outlined below. Staff is requesting that the EDA
provide direction on these issues:
I. Define Primary Role
A. Is the EDA's primary goal to serve as a marketing agent for Elk River's
restaurant site options and opportunities, acting as the communication
link between restaurant prospects and property owners?
II. Define Vision
A. What types of restaurants does the EDA want to attract? Some examples
may include:
i. Ethnic
ii. Sports bars
iii. Family sit-down
iv. Fine dining
v. Independent owners
vi. Innovative franchises
III. Discuss Marketing Policy Issues
A. Does the EDA wish to offer financial incentives to restaurants?
Discuss Restaurant Recruitment
September 10, 2007 IJDA Meeting
Page3of3
B. Does the EDA want to purchase property and reserve it for restaurant
development?
IV. Discuss Restaurant Marketing Plan (attached)
A. Target Audience
B. Marketing Tools
C. Cost
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Restaurant Marketing Plan
ver
Purpose: The purpose of this plan is to provide structure and organization for the City of
Elk River's restaurant marketing and recruitment efforts.
Target Audiences & Goals
Target Audience Goal
Restaurant real estate brokers Communicate site options & development
0 ortunities
Restaurant owners Same as above/entice owners to locate in Elk River
Property owners Encourage partnerships between property owners
and real estate brokers
Marketing Tool Options
Tool Description Cost
Purchase The EDA would purchase land to reserve it for TBD
Land restaurant develo ment
Real Estate Hire a restaurant real estate broker through Three-month search for
Broker Restaurant Brokers of MN to assist in $10,000 ($5,000 up front)
recruitment efforts
This fee would be paid back
to the EDA through
commissions earned by
Restaurant Brokers of MN
from any sales or leases that
are signed in connection with
this project (the EDA would
be paid back'/z of the
commission earned er deal .
signage Woxk with private property owners to develop Street Dept. to create
consistent City sponsored signage for sites at an estimated $212 for
s ecificall slated for restaurants materials er si
Ads Place ads in Minnesota Kestaurateur (need to •$375 membership fee
become member of MN Restaurant Assoc. •ad space-$275 to $2,000
first), which is mailed quarterly to every •ad design-set up fee $100 &
restaurant in MN, their suppliers and all state first hour, $75 per hour
le 'slators circulation of 10,000 thereafter
Direct Mail Send letters or other direct mail feces Posta e/ a er
Restaurant Marketing Plan
Page 2 of 2
City
Website Add page to City Website under Economic
Development section specific to restaurant
recruitment & demo a hics n/a
ERtV City government access cable channel to n/a
Channel 12 include information (on station "billboard", via
video foota e, Ma or's show, etc.
Videos •Hire professional to create marketing video •$5,000-$10,000
Offer a marketing video clip on the City •Paid for through sponsors
Website (see attached draft Community Movie (as clip is shown on the Web,
Showcase Agreement for more details) sponsors' names appear near
the cli
Community Movie Showcase Agreement
CGI Communications, Inc.
130 East Main Street, 8th Floor
tochester, NY 14604
(800) 398-3029 phone
(585) 427-0075 fax ~~
DG°~l~
Name: Heidi Steinmetz
Title:
Address: 13065 Orono Pkwv NW
City, State, Zip: Elk River MN 55330
Phone:
Email: hsteinmetz@ci.elk-river.mn.us
Websife: http://www.ci.elk-river.mn.us/
This agreement is between CGI Communications, Inc. and the City of Elk River and shall remain in effect from the date it is signed by both parties until the third
anniversary of the date that the completed and approved Community Movie Showcase is made available for viewing via a link on the Elk River website homepage
for viewer access. The term of this agreement shall automatically renew unless either party gives 60 days written notice of termination or modification prior to
expiration.
CGI Communications, Inc. and its e-Locallink division shall provide a Community Movie Showcase as follows:
• Website Welcome video from your Mayor or other civic leader and an Education, Quality of Life, and Real Estate/Relocation video (approx. 1 minute in duration)
• Up to 2 additional videos to showcase various aspects of your community and/or organization (providing a total of 6 1 minute community highlight videos)
• Script writing and video content consultation
• A videographer will come to your location to film videos
• All aspects of video production and editing, from raw footage to final video including professional voiceovers and background music
• Final draft of Community Movie Showcase content subject to your approval
• Patent-pending OneClickT"' Technology and encoding of all videos into multiple streaming digital formats to play on all computer systems, browsers, and Internet
connection speeds; recognized player formats include WindowsMedia® and QuickTime®
• Store and stream all videos on CGI's dedicated server
• Business sponsors allowed on the perimeter of video panels
• Duration of sponsor participation will be one year and e-Locallink is solely responsible for annual sponsorship fulfillment including all related aspects of marketing,
production, printing, and distribution
• Viewer access of the Community Movie Showcase from your website shall be facilitated by e-Locallink providing HTML source code for graphic link to be
prominently displayed on the Elk River website homepage as follows: "Coming Soon" graphic link designed to coordinate with existing website color theme to be
provided within 10 business days of execution of this agreement; "Click Here to View Our Community Movie Showcase" graphic link to be provided to replace the
"Coming Soon" link upon completion and approval of videos
• e-Locallink will own copyrights of the master Community Movie Showcase
• The City of Elk River will assume no cost or liability for this project
rogram Add-On if signed and received by 09/14/07:
Encoding, hosting, and streaming of additional 5 minutes of video per month. Finished video content will be provided to CGI by the City of Elk River
The City of Elk River, MN shall provide the following:
A letter of introduction for the program on your organization's letterhead
Assist with the content and script for the Community Movie Showcase
Agrees to give e-Locallink the right to use organization's name in connection with the preparation, production, and marketing of the program set forth herein only
Agrees to display the "Coming Soon" graphic link prominently on the Elk River website homepage within 10 business days of receipt of HTML source code
Agrees to display the "View Our Community Movie Showcase" link to be no less than 150 by 400 pixels prominently on the Elk River website homepage for the
term of this agreement
Provides e-Locallink exclusive streaming video rights for the program described herein only
We, the undersigned, understand the above information and have full authority to sign this agreement.
The City of Elk River, MN
Signature:
Name (printed):
Date:
CGI Communications, Inc.
Signature:
Name (printed): Nicole Rongo
Title: Marketin_g Manager
Date: 9/5/07
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