Loading...
8.0 EDSR 01-12-2009ITEM # 8. of ver MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: January 12, 2009 SUBJECT: Discuss EDA Goals and Projects for 2009 Attachment • Staff report dated January 5, 2009 re: HRA Goals and Projects for 2009 • 2004-2007 Economic Development Strategic Plan • 2007-2009 Strategic Industrial Marketing Plan -Strategies and Tactics Background As you are aware the Economic Development Division provides staff support for both the HRA and EDA. A copy of the HRA's recently reviewed goals and projects for 2009 is attached. Overview of 2008 EDA Goals & Projects • Consider update of City's Economic Development Strategic Plan to provide a framework for the EDA and HRA to work within and focuses staff energies on those priority areas important to the economic health of the City (Status: postponed to 2009) • Implement strategy fox the marketing and development of Gateway Business Park • Initiate discussions to identify locations, phasing and financing strategy for expanding city's inventory of industrial and commercial land for future development. • Monitor Elk River Target store relocation for recruitment of new user or redevelopment Ongoing Initiatives • Market for sale and development of remaining lots in Northstar Business Park to users who will maximize the buildable area of the lots. • Implement attached strategies identified within the Strategic Industrial Marketing Plan, with an emphasis on broker/developer relations and website features. • Continue marketing efforts to recruit restaurants and retail development. • Maintain updated inventory of commercial/industrial properties for sale or lease. • Provide business retention and expansion services and promote use of the micro-loan program to existing manufacturers, while marketing for new business recruitment. 2008 Project Highlights • Initiated land use plan for the development of Gateway Business Park • Provided financial assistance for the following industrial expansion projects: o Metal Craft Machine o E & O Tool o Sportech (including application award of $500,000 MN Investment Fund grant to City/loan to business) • Maintained inventory of industrial, and commercial, properties for sale/lease • Made follow up contact with restaurants and initiated Retail Trade Analysis for use in restaurant/commercial marketing efforts. • Participated in several broker/developer marketing initiatives including Sherburne County Developer Roundtable and sponsorship of developer workshops Issues for Discussion In addition to the Ongoing Initiatives listed above, staff requests the EDA's feedback and direction on the priority goals and projects for 2009. 2009 Proposed EDA Goals & Projects • Consider update of City's Economic Development Strategic Plan to provide a framework for the EDA and HRA to work within and focuses staff energies on those priority areas important to the economic health of the City o Timeframe: Spring 2009 • Complete and adopt land use plan fox 171" Focus Area Study and implement strategy for marketing and development of Gateway Business Park o Timeframe: Spring/Summer 2009 • Initiate discussions to identify locations, phasing and financing strategy for expanding city's inventory of industrial and commercial land for future development o Timeframe: Summer/Fall 2009 • Monitor Elk River Target store vacancy for recruitment of new user or redevelopment o Timeframe: Ongoing • Implement aggressive Business Retention and Expansion program with emphasis on manufacturers. o Timeframe: Spring 2009 fiver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Development DATE: January 5, 2009 SUBJECT: Discuss HRA Goals and Projects for 2009 Attachments • 2004-2007 Economic Development Strategic Plan Background Overview of 2008 HRA Goals and Projects • Coordinate completion of an Elk River Housing Market Study to be used to identify issues and gaps in current and future housing inventory (Status: delayed upon completion of 2010 census data). • Explore need and partnership opportunities for housing rehabilitation programs. • Explore need and partnership opportunities for a selective housing redevelopment program (voluntary acquisition/removal and replacement of blighted homes). • Resume planning process for the comprehensive Downtown Redevelopment Plan (following completion of Highway 10 Geometrics Study) 2008 HRA Projects • Assembled research and marketing of housing rehabilitation and energy efficiency financing programs offered by regional agencies for the benefit of Elk River residents. Participated in City Council's review of the Highway 10 Geometrics Study designs as it impacts the draft comprehensive Downtown Redevelopment Plan. Assembled research on Elk River's foreclosure situation, foreclosure prevention services, and initiated grant application for federal Neighborhood Stabilization Program (Foreclosure Recovery) grant funds. Discuss 2009 HRA Goals & Projects HRA Meeting January 5, 2009 Page 2 of 2 Issues for Discussion Staff requests the HRA's feedback and direction on the preliminary list of 2009 goals and projects: 2009 Proposed HRA Goals and Projects • Coordinate completion of NSP Grant Application and implement program strategies in target neighborhoods. • Continue to market resources for housing rehabilitation and energy efficiency financing assistance. • Resume planning process for the comprehensive Downtown Redevelopment Plan. • Participate in joint meetings to update the City's Economic Development Strategic Plan which identifies priority areas for EDA, HRA, City Council, and staff resources. • Explore need and partnership opportunities for a selective housing redevelopment program (voluntary acquisition/removal and replacement of blighted homes). Addition by HKA at its Jan. 5, 2009 Meeting 0 n 0 0 N O O N a+ e m a 0 m s d 0 v .~ 0 c ~i W ~ ~ ~ L ~ ~ a O ~~ ~ 0 O .. ~ ~ ~. ~ 0 0 ~ ~ 0 ..Q 0 .. 0 Q •s V •~ V ~~ #~ 4}~ i~ h'~ ~~ ~~ ~~ ~~ ~ o ~~ ~_ • : O ~~ ~""~ a .~ s ~~ ~~ O 0 O ,~ r ~ .: c~ .~ O O ~~ ~~ ~~ .~ a I~ ~~ r~ f...~ ~~ r s O ~ s ~~ ~' ~' ~ .~ ~ ~`:'W ~ ~ ~ ~ ~ ~ ~ ~ b ~ ~ ~ ~ ~ ~ ~ ~ r ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ,f ~ ~ ~ O ~: ~ ~ ~ ~ ~ ~ ~ ~ p ~ p ~ ~~ ~ O ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~ +p +~ o ~ ~ ~ ~ ~~~~'o- ~~~ ~_ o ~ o ~ °~,'o~~~a~~~~~ o~ ~~~~: 4~ ~ ~~ ~: p ~ ~ ~ ~ ~ ~.: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~s ~ ~ ~ ~ +s ~ ~ O rs O ~ +~ ~ ~ ~s ~'~ ~~ p ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ +: ~ ~+: ~~ ~ ~~ o ~ ~ "'~" o~~~~~+~~~o~ ....: 0 N Q O N N D .~ ~J X ~J •~--~ .~ L .~ ~ (n ~~ ~. X ~ ._ ~ V ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ .~ V (l1 ~ ~ •- .~ O ~ ~ ~ ~ 4J ~ ~ V ~ • ~ Q~ ~ ~ (~ Q .~ ~ ~--~ .~ -I--~ -I--~ ~ 4) U ._ > ~ V (~ ~ ~ .. V ~ ~ . i ~ ~ a--~ ~ ~ ' ~ ~ ~ ~ .- O ~ ~ _ ~ V ~ •- ~ ~ ~ ~ ~ ~ ~ .~ _ ~~ ~ ~ ~ ~ ~ ~ cn m ~ ~ ~ L ~ ('a Q~ .. • •- to -~ ~ V ~ ~ ~ ~ ~ ~ ~ ~r U I~ ~ ~~ 0 ^~, W ^~ Q ^~^,, W ~^^ ^^,, ^^~~ ~..L i W •/~ .~ ^^L,, ~, W O ~ ~ ~ ~ V ~ o ~ ~ ~ ~ ~ O ~~ ~ O ~ ~ O ~ > ,i f~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ .~ ~ ~ •- ~ ~ a--~ ~ 4~ ~ ~ ~ .~ ~ ~ ~ i ~ Q V ~ ~ ~ ~ ~ ~ p ~ cn O 4~ ~ ~ ~ ~ ~ V ~ ~ ~ ~ ~ ~ ~ L 1- U ~~ h, Q^~ ^ ^ ~~ cn 4~ ._ ~~ ~ ~~ cn ~I, ~ ,~ O r ~ O_ ' 3 ii O ~! O ~+,~ ~ O ,~ ~ O L ~ ~ ~ .~ ca ~~~~~.. ~ ~,~.~.. ~ _ -~ ~ ~ O ~ W L - i ~ ~ ~ ~O ~ ~ ~ cn ~ i ~ ~ O O O ~ ~ ~ .~ ~ ~ ~ ~ O Q O m ~ ~ al j ~ . V .~ ~ ~ ._ ._ O U ~ ~ v a. ~ ~ ~ ~ ~ - ~ W ~ ~ ~ '~ O-~ i '0 ~ ~ O ~ ~ ~ U U ~ ~ ~ ~ ~ ~ ~ ~ v ~ ~ ._ ._ -'-' a~ ~ ~ ~ `~ m .~ U o ~ ~ ~ cn ~ ~ ~ ~ ~ O O ~ .~ ~ ~ ~ ~ _ ~ 'gin ~ > > ~ '~ O m U~ ~ U~ .~~. . _y. ~~ ~ ~; ~ ire ~~ ~ ~ ~~ ~ O ' a--~ PI' n ~ ~ • ^ ~ ~ ~ L ^ J ~ 4- ~ k~ ~ ° ~ ~ a-.~ ~ f~ ~ U G _ .. ~ 0 ~ f~ -+-~ , i ~ ~ .~ ~ ~ ~Y ~ O 4~' ~ Q ~~' ~ ~ ~ O ~ ~~ ~ (n to . ~ ~~ ~ ~ ~ (n ~> V p ~ O a--~ , 0 ~ ~ . c~ ~ ~ ~ Q ~ ~ ~ ~:~ ~ ~ .~ O ~ ~ .~..~ L ,~ ~ _ ~ ~ • (~ ~ _ ~ ~ ~ / 1~ ~ ~ > 0 ~ ~ ~ ~ ~ i ~ ~ ~ ~1 U ~ U ~ ~ U .._. _ ~g^ n L .i U Z .~ i H U w W fir---~ ~ ~ ~ ~,(.I,~ ,~ ~ O ~ O V ~ ~ ~ ~ ~ ~ (!~ ^J ~ ~ J .~ i i O ~ ._ i p ._ •- •- ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ O •- •- ~ ~ ~ p ~ ~ O Q O O ~ O ~ '~ O DC ~ ~ ~ O ~,, ~ V O ~ •- ~ ~ ~ O Cn ~-' O ~ ~ O i ~ O to ~ H i 0 O p ~ O~ o I- Q ~ o~~~ ~~~oa~ ~ ~ ~ c~ ~ ~ ~ ~ m ~ ~ ~ ~ Ol ~ O ~ ,~ ~ O O ._ °~ ~ p .- ~ ~ ~ ~ oz ~ ~ ~.~~ ~ ~ ~ ~ V - ~ ~ ~ 'V i ~ O f~ ~ ~ ~f~ ~ ~ ~f~ ~ ~[~ ~ ~ ;_ D ~ w ~ ~ ~ ~ ~ ~ ~ ~ U ~~~ .~ .~ c~r~ O ~ ~ ._ ._ a--' ~ ~ a--' .Q .~ ~ ~ ~ ~ ~ ~ ca ~ .~ U ~ ~ - ~ can - ca ._ ~ .~ ~ .~ .~ ~ f~ ~ ~ ~ ~ ~ ~ ~ ~ •- .~ ~ ~ ~ ~ .- ~ ~ ~ ~ O ~ i ~ .~ ~ ~ L Q .~ ~ . ~ .~ p ~ ~ ~ ~' ~ ~ y.- ~ ~ ~ ~ O ~' '~ ~ ~ i ~ o ~ ~ o ~~ ~ ~ ~ o ~ p ° ~ ~ ~ ~ ~ ._ O V ._ a--~ ~ N ~ N ~ .~ ~_ ~_ .~ f6 ~ ;,~, L ;~, (Q ~ ca ~~ ~ ~ ~~~..,.~ ~ ~ ~ .O O ~ ~ ~ L ~ L ~ Q 0 ~ ~ ca ~ ~ ~ ~ ~ X .~ V ~ ~ can ~ ~ ~ O ~ ~ ~ W ~- cr~ , O ~ m ~ ~~' ~ p ~' ~ ~ O ~ O ~ ~ ~ :~, ~ ~.~ ra ~ _o ~ .~ ~ ~~ ~ ~ ~ Q o ~, o ._ ca ~ ~ ~ ~ ._ ._ ~ -i ~ .i ~ ~ V .~ .~ H .~ fQ [~ ~ ~ . _ ~z .o .~ O .~ ~l O ._ 0 O W C n i E+ ~ C m U J i . 4- O Q~ Cn ._ ~_ ~ ~ L ~ 0 O ~ ~ ~ •- Q ~ i •- ~ ~ ~ U ~ ~ ~ O ~ ~ ~~ ~ ~ L ~.. ~' Q ~m~ ~- U ~ ~ ~ ~ 0 U~ ~ ~_ ~ ~ V ~ ~ ~ •- -~-~ (n ~ ~ ~ ` O ~ j i ~ ~ ~ ~ L Q ~ ~ •o 0 ~L ~- o ~ ~ ~ ~ a~ ~ ~ 0 i ._ ~ ~ ~ ~ ~ L ~ ~ ~ ~ ~ ~ ~ ~ ~ ~_ ~ ~ V ~ x . V .~ ., ~ O •- ~ oC c~ ~ ~, a ~~ ~~~~~~'' ~~~ ~~° ~~ ~~-_ :~ ~~~ :`:~ .U ~~ ~~ ~~, ^ .-. D m U O J O L U_ O O .- ~ O ~ ~- ca ~ ._ ._ . -~ ~ ~ L •- ._ .> ~ ~- ~ .~ V i ,~ ~ L ~~ ~o ~ V ~ L U L ^^~ I..i~ Cn O N L .~ L 0 a--~ ~/ 0 ~ ~. ~ ~ o~ V ~~ .~, o ~ O ~ V D ~ ~, ~~ ~_ ~~~ O 01 ,~ ..~~ a~~ ~ ~~ ~ W ~ ,-~ L ~_ ~ ~ ~ ~ ~~~ ~ ~ ~ ~ ~ ~ ~.~ ~ o0 0 0~ ~~ ~ ~ v Q ~ L tB c/) , V ~ j. ~ ~ .}.~ . - .~, [~ L ~ '~ ~.~~ ~1 ~~ ~ ~ V = ~ ~ ~ Q V ~ ~ .~ ~ i - ~ .~ ~ ~ ~ ~ ~ ~ i ;~ . _ ~ v oC ~ ~. ~ o ~ a~ ~ •- ~ w c~ ~ r~ - ~ ~'"' ~ ~~~,a= ~~ ~~ o 0 4' \Y ~ O ~ ~ d1 ~ - ~ --~~ ._ ._ ~ ;~ ~ U ~ U a. ra Q cn ~ .~ ~, ~.. :" ~ L ~fi~P ,, ~~' ,~ ~; ~, ;. ~u tl D ii~~ ,, (~'' ~ ~''~~ ,~, ,, ^ . , .,-~ } ~ ~ _0 a--~ O .V) a--~ ~ a--~ ~~ •~ a--~ L ~~ ~ (/~ • - ~..J L ~ ~ ^- -I-J ~ ('~ ._ V a.-~ '~ .~ ~ ~' ~ ~ ~ a"' _ O ~ ~1 x ~ ~ W c~ u Strategies and Tactics How can Elk River achieve its new and expanded industrial development marketing objectives? We recommend these strategies: 1. Broaden the primary target market to include medium to large light industrial manufacturers as well as small to medium users, and place more emphasis on assisting existing manufacturers 2. Increase the intensity of marketing efforts targeting industrial brokers, owner's representatives and -site selectors because of their influence and market knowledge 3. Leverage the competitive advantage provided by Northstar Commuter Rail and additional differentiated community assets 4. Leverage the fact that two Fortune 50 firms recently selected Elk River for new facilities, which adds credibility and suggests that the City is ready to take industrial development to a higher level 5. Continue to employ about the same mix of marketing tools that the City has used in the past, but with greater emphasis on public relations and events 6. Facilitate the preparation and marketing of the new Gateway Business Center 7. Conduct acity-wide market study to determine the location, size and phasing of additional industrial land inventory Strategy #1: Broaden the Primary Target Market One of the City's top industrial development priorities is to attract projects that will create good- quality jobs and add significant market value to the tax base. Elk River has succeeded in doing exactly that during the past four years. A dozen small to medium sized light industrial manufacturers have relocated to or expanded in the community, bringing good-paying jobs and facilities that add to the tax base. Thus, the consensus is that the City should continue to build on that impressive record of success. However, as Elk River continues to grow and mature as a community, so should its industrial marketing efforts, according to many of the people with whom we spoke. Several strategic options were suggested and considered. But the majority seemed to agree that, if the City is going to "aim higher," the primary markets to be targeted should include: ^ Small to medium light industrial manufacturers ^ Medium to large light industrial manufacturers ^ Existing manufacturers In essence, the consensus was that Elk River should continue to target small to medium light industrial manufacturers, expand its marketing to target medium to large light industrial manufacturers, and increase its focus on existing manufacturers. Broadening the City's marketing efforts in this way should allow Elk River to attract industrial development projects that increase the quantity and quality of jobs while adding significant market value to the tax base. In targeting small to medium light industrial manufacturers during the past four years, the Elk River Economic Development Division has done an effective job of implementing the Key Account and Lead Generation Strategies outlined in the 2002-2004 Action Plan. As recommended, all industrial 10 inquiries have been managed effectively, and EDA members, local business leaders and other partners have been enlisted to aid in sales efforts. It was also recommended in the 2002-2004 Action Plan that the number of Key Accounts (10 as of August 2002) be expanded annually, and that has been accomplished. The number of key accounts currently stands at 57. A broader list of 524 contacts includes those Key Accounts plus several hundred additional prospects, most of which were identified by renting lists from Minnesota Technology. As we look ahead to 2007-2009, we suggest these tactics: ^ Define the parameters for "small to medium" and "medium to large," enabling the City to more easily identify and obtain additional prospect names to include in its marketing efforts ^ Reexamine the Key Account and other prospect lists to determine whether they sufficiently include the City's expanded target: medium to large light industrial manufacturers ^ If they do not, obtain contact information for additional medium to large prospects To place more emphasis on assisting existing manufacturers, we recommend these tactics: ^ Continue to provide -and possibly expand -programs that benefit existing manufacturers, such as financing and training programs, and work to increase participation in those programs ^ Continue to host and enhance the annual Manufacturing Week recognition event ^ More strongly communicate the City's commitment to existing manufacturers by such things as adding a dedicated "Tools for Existing Businesses" link to the Economic Development Division home page on the City's Web site, and increasing the frequency of Economic Development Division marketing and communications contacts with existing manufacturers Strategy #2: Increase Marketing Efforts Targeting Industrial Brokers As stated above, the secondary target market of industrial brokers and owner's reps/site selectors is an important and influential group. They are knowledgeable about sites and requirements, and influential in client decisions. This is especially true regarding medium to large light industrial users - a market we hope to more effectively target. But it is difficult to reach and build relationships with brokers, and they have little or no incentive to promote a city unless they have property listings in the community. Although the EDA Marketing Committee and City Staff had little enthusiasm for the idea of hiring brokers directly to market City-owned land, they recognize their influence and information value, especially for medium to large light industrial users. Thus the City should develop more effective strategies for gaining the attention and support of the broker community. We suggest these tactics: ^ Identify the five to 10 most`knowledgeable and influential industrial brokers working in the Northwest Metro ^ Ensure that those brokers are part of the City's Key Account list ^ Continue to follow through on the established Key Account strategy, including being responsive to broker inquiries, networking with them periodically and maintaining ongoing contact ^ Continue to compensate brokers for bringing users to City-owned industrial sites 11 ^ Develop and submit to the EDA a proposal for giving finder's fees or some other tSTpe of compensation to brokers who site clients on privately-owned industrial sites ^ Clearly communicate the existence of both incentive programs to the broker community ^ Develop abroker-oriented event that will attract brokers to the community to network and to see local industrial development site options It should be noted that the 2002-2004 action plan recommended meeting with Key Accounts three times per year. We believe that is unrealistic because the Key Account list has grown to 57 contacts and because most brokers would probably resist that level of contact. Based on comments from the brokers with whom we spoke, that frequency of meetings is probably unnecessary -and unwelcome. They are extremely busy and are usually only interested in meeting if there is a specific opportunity to discuss. Thus, the City will probably achieve better results if it will: ^ Keep brokers informed through marketing communications ^ Make periodic phone contacts with brokers about new opportunities ^ Host a broker event that will give brokers a reason to visit and pay attention to Elk River Strategy #3: Leverage Northstar Commuter Rail and Additional Differentiated Community Assets With Northstar Commuter Rail moving closer to reality every day, there's little need to belabor the point that it will be a significant asset to the City of Elk River. The many upbeat comments made by those we interviewed, as well as the positive response to the Northstar Business Park (specifically the almost immediate sale of three lots for development of 68,000 square feet), are proof enough. Admittedly, with initial plans for only one daily "reverse-commute" (east to west) commuter run, the immediate impact of Northstar for Elk River will not be dramatic. But service is likely to expand in the future, and there is akeady a highly positive perception of the potential impact. The question is how to most effectively leverage Northstar. One obvious way to do that is to tout Northstar at every opportunity. The Economic Development Division has done an effective job of doing that with regular Northstar updates in the News from the Hub newsletter. And, of course, naming a business park after Northstar was a shrewd move. To more fully leverage Northstar, we suggest that the City implement these additional tactics: ^ As has been mentioned, the City Web site is usually the first stop for economic development inquiries. However, information about Northstar is currently buried deep within the site. We suggest that the Northstar logo be displayed - or that Northstar at least be mentioned - on the City's home page, or at least the Economic Development Division home page. ^ Currently, there is no prominent information about Northstar in the Citv's hard copy package of economic development information. We recommend that a dedicated Northstar brochure or sell sheet be added to the pocket folder. ^ Take every opportunity to tout Northstar. Every Economic Development Division ad, direct mail effort, news release and communications effort should mention Northstar. ^ The City and EDA should advocate expanded Northstar service to Elk River 12 Having said that, it should be noted that Northstar is not a sustainable source of competitive advantage over all of the City's competitors. Elk River will have a station, but so will Big Lake and Anoka. But it is a competitive advantage over nearly all competitors. So it should be emphasized. Additional Differentiation Opportunities Elk River has been known as Energy City since 1997 when the Minnesota Environmental Initiative chose it from more than 30 other applying communities to act as a geographical focal point for the demonstration of efficient and renewable energy products, services and technologies. Builders, utility companies, government agencies and businesses have implemented several projects, including Energy Houses I, II and III. The Downtown Revitalization Project will also bring nearly 22,000 square feet of commercial space, 67 for-sale housing units, 32 rental housing units and 154 below-grade parking stalls to the downtown area as part of the Bluffs of Elk River and Jackson Place projects. As with Northstar, there is an opportunity to make the Energy City Program and Downtown Revitalization Project more prominent in the City's industrial development marketing materials. Although these projects might not have a direct impact on industrial development, they reinforce a general perception of Elk River as a vital, progressive community. Strategy #4: Leverage the fact that two Fortune 50 firms recently selected Elk River for new facilities, which adds credibility and suggests that the City is ready to take industrial development to a higher level Two Fortune 50 firms recently selected Elk River for major projects. As was noted during the Aug. 28 EDA Marketing Committee meeting, that speaks volumes about how Elk River is regarded by corporate users and site selectors. It boosts the City's credibility as a viable location for more than just small to medium light industrial development. Even if future projects aren't on a similar level, these prestigious projects will undoubtedly lend credibility during the sales and marketing process with any prospective user. Unfortunately, the sensitive nature of these projects limits the City's ability to leverage these successes at this time. However, the scope of these projects is certain to bring them to the attention of other interested parties -certainly the well-informed broker community, and possibly corporate users. There has also already been limited media coverage of these projects, and the names of the companies involved will be (or have already been) mentioned in City and County meeting proceedings and other documents. Thus they are public information. And, of course, anyone driving along Highway 10 can't help but notice the enormous facility currently being built -and the second one is expected to be even larger. So while the users are understandably sensitive about publicizing these projects, the projects are public information and will probably soon be almost common knowledge. Even so, given the sensitivity of these projects, we recommend that City officials communicate their intentions with the users before mentioning those projects in any marketing efforts. 13 Although it seems unlikely that these users would ever want these projects prominently featured in broad advertising or publicity efforts, perhaps they would be open to more limited, low-key efforts, such as project case studies included in marketing packets or targeted direct mail efforts. At worst, these projects can surely be mentioned in verbal communications with prospective users. Strategy #5: Continue to employ about the same mix of marketing tools, but with greater emphasis on public relations and events During the past four years, the Elk River Economic Development Division has pursued an integrated marketing communications strategy employing all components of the marketing mix: advertising, direct mail, public relations, events, Web site and personal selling/relationship building. As recommended by the 2002-2004 Action Plan, the City has increased its investment in direct mail and public relations. 2004 2005 2006 2007 Advertisi $28,500 $28,500 $34,200 $20,000 Public Relations $17,000 $19,500 $24,000 $25,000 Other Marketin $2,500 $8,600 $18,100 $5,600 Total $53,500 $56,600 $76,300 $50,600 (The 2006 budget was disproportionately higher due to the $10,000 cost of Northstar Business Park signage, $5,000 for the Technical Assistance Grant Partnership Program with Minnesota Technology and other one-time costs.) Perhaps most notably, the Progress Partner Dispatch newsletter was redesigned, expanded and renamed News from the Hub. (Please see Appendix H for an example of the News from the Hub newsletter.) In addition to the relaunched News from the Hub newsletter -which can also be considered a form of direct mail and PR -several project case studies have been written, which have been used online and as a part of hard copy marketing materials. The owner of one business that recently decided to relocate in Elk River said a project case study he read on the City's Web site was the biggest reason he decided to consider Elk Rivera Several news releases were also written and distributed, and valuable positive publicity was obtained in local media, including the Minneapolis-St. Paul Star Tribune, Minneapolis-St. Paul Business Journal, Minnesota Real Estate Journal, Elk River Star News and other publications. Public relations is an inexpensive and highly credible form of marketing. With the recent economic development successes in Elk River, there is plenty of "good news" to be shared. (Please see Appendix I for examples of public relations efforts and results.} The City has also improved and expanded the amount of economic development information available online because it has become common practice for a city's Web site to be the first point of contact for economic development inquiries. 14 To maximize the value of the marketing budget, we strongly recommend these tactics: ^ Devote even more of the marketing budget to public relations efforts, including new and updated case studies ^ Research and write new and updated case studies for all recent projects ^ Establish a regular schedule (at least six per year) of news release distribution and media relations ^ Continue quarterly publication of the News from the Hub newsletter ^ Reevaluate the messaging, design strategy and media selection strategy of the advertising ^ Continue to maintain, update and expand the content and other resources available online Strategy #6: Facilitate the preparation and marketing of the new Gateway Business Center Strategy #7: Conduct aCity-wide Market Study to Determine the Locations, Size and Phasing of Additional Industrial Land Inventory These two strategies go hand in hand. As noted earlier, there's little value in doing industrial development marketing if the City doesn't have land available. So, with respect to the dwindling inventory of land ready for industrial development in Elk River, we recommend these strategies: ^ Move forward expeditiously to make the new Gateway Business Park available for development ^ Conduct a market study to determine the location, size and phasing of additional industrial land inventory The Gateway property will provide ashort-term solution to the problem of the City's lack of available land for industrial development. Gateway may also provide an opportunity for some commercial development, and the appropriate mix should be supported by a market study. However, the Gateway property totals only about 60 acres, and its development potential is limited by wetlands and a gas line that passes through the property. Meanwhile, larger -and in some ways, more desirable -tracts of land have recently become available for industrial development in competing areas, including Otsego (129 acres), Monticello .(120 acres) and Big Lake (50 acres). There is also the potential for Rogers/Hassan Township to make more land available for industrial development. In light of this situation, the EDA Marketing Committee and City Staff agree that the City must also address the long-term need for additional industrial land. We strongly concur with City Staff's recommendation that the City conduct a market study to determine the location, size and phasing of additional industrial land inventory. Please see Appendices C and D for copies of the EDA Marketing Committee meeting minutes. 15 ~~® ver MEMORANDUM TO: Housing & Redevelopment Authority FROM: Catherine Mehelich, Director of Economic Developme DATE: January 5, 2009 SUBJECT: INFORMATION - HRA Executive Director's Report Attachments EDA Executive Director's Report, December 8, 2008. Retail Trade Analysis Presentation Flyer In an effort to keep the HRA informed of various Economic Development Division activities that do not require action by the HRA, I will be providing an Executive Director's report periodically throughout the year. A copy of the recent report provided to the EDA is attached for your information on EDA-related activities that staff is undertaking in addition to the HRA-related activities listed below. HRA Commissioners should feel free to bring up any questions or issues for discussion under the "Other Business" section of the Agenda. Housing Rehabilitation & Energy Efficiency Resources Following a review of existing housing rehabilitation resources available to Elk River residents through various regional agencies, in 2008 the HRA directed staff to partner with the agencies to better market the programs to Elk River residents. Economic Development Assistant Annie Deckert developed a Housing Rehabilitation Programs brochure that was distributed throughout the community, on the city website, and city newsletter, in addition to coverage in the Star News. The agencies provide updates to staff on the interest and usage of the programs based on inquiries from Elk River residents. The Center for Energy & Environment recently reported since the October mailing of fliers to 9,156 single-family homeowners in Elk River, the Center has processed 4 applications. Two were rejected (for reasons of bad credit/high debt) and two remain in process. Foreclosure Prevention In October 2008 the HRA heard a presentation from the MN Homeownership Centex regarding their mortgage counseling services available to Elk River residents. Information HRA Executive Director's Report HRA Meeting January 5, 2009 Page 2 of 2 about their services was added to the city website, cable TV announcement, and article in Star News. Brochures and posters provided by the MN Homeownership Center will be distributed throughout the community when received. Tackson Place and Bluffs of Elk River No new commercial tenants have been announced for either location at this time. Jackson Place apartments remain completely occupied. The Bluffs condo units include 3 owner- occupied units and 2 renter occupied units (to victims of Lion's Park Apt fire). Neighborhood Stabilization Progr~Foreclosure RecoveryLpplication Economic Development Division staff has been working closely with the HRA's grant writer, Heidi Peper of S.E.H. to complete the application by the January 28, 2009 deadline. A majority of staff time has been spent researching, compiling and sorting foreclosure data from the county sheriff's sales, historical data, current property listings, and surveying properties for conditions. The City's Code Enforcement Officer Dave Hetrick has been particularly helpful in this effort. Retail Trade Analysis In 2008 the EDA commissioned the U of M Extension service to conduct a Retail Trade Analysis and work shop. The RTA report assists a community in evaluating the health of their retail sectors by providing local sales data, comparisons with other communities, and provides information to help assess strengths and opportunities for local businesses. Economic Development Assistant Annie Deckert has coordinated a work shop with the Elk River Chamber of Commerce to present the results of the study on Thursday, Jan. 22 from gam-10:30am at City Hall. A flyer is attached fox your information; please contact the Chamber to RSVP by January 19`t`. Mississippi Connections Downtown Redevelopment Draft Plan Community Development Director Jeff Gongoll will be revisiting this issue with the City Council at its January 12, 2009 work session. S:\EDA\HRA\AGENDA\Year2009\1.05.09 exec dir report.doc 1~9~®6QMAT10:~ ver MEMORANDUM TO: Economic Development Authority FROM: Catherine Mehelich, Director of Economic Development DATE: December 8, 2008 SUBJECT: EDA Executive Director's Report In an effort to keep the EDA informed of various Economic Development Division activities that do not require action by the EDA, I will be providing an Executive Director's report periodically throughout the year. EDA Commissioners should feel free to bring up any questions or issues for discussion under the "Other Business" section of the Agenda. Northstar Rail As you are aware, Community Development Director Jeff Gongoll is coordinating the 17151 Ave Focused Area Study with Hoisington Koegler Group, with assistance by Planning Manager Jeremy Barnhart. Attached is a copy of an article that appeared in the Star Tribune Sunday, November 30, 2008 regarding developments along the Northstar Commuter Rail line. Staff's conversations with employers over the years have indicated roughly 50% of employees commute from the metro area. In order to maximize the benefits of the line coming from the metro area to Elk River, Economic Development Division staff is drafting a brief survey to gauge the ridership interest of Elk River's largest employers and assess any obstacles for employees to make internal connections between the rail station and place of work in Elk River. Commercial/Industrial Property Inventor Annie and I have been utilizing the new MetroMSP website ww-w.metromsp.org to post available properties for sale or lease in Elk River. This link is available on the EDA's webpage. A concern has been raised by a member of the EDA Marketing Committee regarding the amount of vacant commercial/industrial lease space and a desire for a more aggressive marketing campaign. We are researching the issue and are awaiting the EDA's appointment of the Marketing Committee at its Annual Business Meeting in January, as well as the EDA's authorization for the committee to meet to discuss the issue. EDA Executive Director's Report EDA Meeting December 8, 2008 Page 2 of 2 Restaurant Marketing As reported at the October EDA meeting, following the Retail Trade Analysis presentation in January, Annie and I will focus on 10-15 restaurants to set up meetings and discuss the RTA results and specific locations to increase their interest in the City. Vacated Elk River Target Store Community Development Director Jeff Gongoll has been in contact with the broker and monitoring the status of any potential tenants for the vacated store. Broker/Developer Marketing Annie and I recently attended the 2"d Annual MN Commercial Association of Realtors Expo. Staff was able to visit with several metro area brokers and share information about the anticipated land use plan and development opportunities for the 1715i Avenue focus area and Gateway Business Park. Several developers indicated to staff a high level of interest in keeping an eye on property in the northwest area and near the rail for future developments. We will be maintaining contacts with these people as the focus area study nears completion. Image /Marketing We realize the Focus Area Study is a first step toward discussion on this item which is in follow up to a few of the City Council's priority issues identified in the January 2008 planning workshops - "Image" and "Marketing for Commercial & Industrial Development". Additional discussion and direction on the following items maybe appropriate during the anticipated joint Council, EDA and HRA workshops early in 2009 when the Strategic Plan for Economic Development is developed: 1) Identify the city's desired "target market" fox specific types of commercial and industrial development. 2) Identify desired market focus/theme (e.g. Light Industrial Hub, Energy City, etc.) 3) Identify sites fox commercial and industrial business park development to maintain a sufficient inventory. S:\EDA\AGENDA\Year2008\12.8.08 exec dir report.doc l~fFt,RMJ~TIC~ ~~ ~:.~'" ~. I r ~.~.J .. ~''' ~~ ~= i ~_~ .•~+ i I 1 ~~ CAN I BUY IT IN ELK RIVER? Please join us for a Retail Trade & Analysis Workshop on Thursday, January 22nd at Elk River City Hall from 9:OOam-10:30am. Presented by Claudia Cody, University of Minnesota Extension Service This workshop will provide the local sales data which: assesses retail strengths and opportunities • benefits existing businesses and may attract new businesses • identifies retail opportunities • specifies retail potential • a documented report will be made available to future developers which will help support the need for specific businesses. Refreshments are provided. Please RSVP to the Elk River Chamber of Commerce at 763-441-3110 by Monday, January 19th. Cost is $5.00 UNIVERSITY QF MINNESOTA ~~ is , Elk RiaerArea GA~1e4~1 Chamber of Commerce CQFFEE. Page 1 of,~'2 I~VF`®;@M~TI® Mehelich, Catherine From: Enterprise Minnesota [reply@enterpriseminnesota.org] Sent: Friday, January 09, 2009 9:15 AM To: Mehelich, Catherine Subject: eTrends Newsletter A PU BLJ CATI G7N fJF ~NTEPiPR`1S~ 0411 N ~+I E S4TFt hterp+r7g hAz~nutr~ctui~in~ ~nterprr5es~ Grp~.u !-'ratit~tsly January 9, 2009 Growth Acceleration Program Fuels Stories of Success Newst~ for Minnesota Manufacturing Acquisition: Elk Riv based Cretex The Star Tribune recently published "Growing Up In a Down Economy,' highlighting C...o....mpanies announces companies that are thriving despite the current difficult economy. purchasing the assets of Meer_Tool, a "It's a truly outstanding look at a number of Enterprise Minnesota's manufacturing precision metal clients -that are finding success," according to Bob Kill, President & CEO of stamping company in Anoka. Cretex's Enterprise Minnesota. commercial Products Group currently What are these companies doing? They're being creative, investing in their people, provides contract and improving their competetive advantage. manufacturing services requiring heavy gauge metal Several featured companies in the article qualified for help through the Growth machining and Acceleration Program (GAP), astate-funded matching grant program for smaller fabrication, precision manufacturers to make changes that improve their business. machining, metal stamping and fabrication, and plastic GAP provides small manufacturing and manufacturing-related companies with molding. needed help to compete and continue their commitment as employers, job creators, and contributors to local community life. Award: Imaton Corp„ of Oakdale, announced that its Authorized in 2007 by the Minnesota State Legislature, the Growth Acceleration Apollo Expert UX 2.5- Program (GAP) allows manufacturers with fewer than 100 employees to receive up inch external hard to $25,000 per year toward projects intended to help the company grow. The drive was awarded the " business must match an GAP mone awarded. That means a maximum of $50,000 Y Y Art of prestigious Storage" award at the per company, per year, including a 50 percent match. More than 50 companies 2009 Storage Visions statewide have received GAP grant monies in just the last year. conference (partner program to the 2009 GAP fundin is makin an im act on Minnesota manufacturers, Kill sa s. "We are g g P y International CES) in Las Vegas. seeing a return of $15 for every $1 invested in the program," Kill said. "That's a huge impact in terms of job retention and job creation for the communities where these Best Places to Sell: companies are located." St. Paul's Ecola....b..._I..n.c. was named to Selling Power magazine's list "Small manufacturers are the backbone of Minnesota's economy, and GAP is of "The 50 Best another tool for them to grow," Kill said. Companies to Sell For" for the fifth Read More: consecutive year. Companies that made the Selling Power list Growing UP_ in a„Down Economy scored well on average starting 1 /9/2009 Page 2 of~'Z By Dee DePass Star Tribune December 28, 2008 salaries, incentive pay and benefits; time invested in training on selling skills and product knowledge; and frequency of performance reviews and promotions. In The Headlines .~ ~ ,. ~ ENTERF~RISE '" ~~ M6N N ESCITA Local Economy Hope. for the Best, Plan for the Worst (Mankato Free Press, 1/4/2009) Program Heips Small Businesses Succeed (Litchfield Independent Reveiw, Developing "72009' Leaders at All Levels in Business Upcoming Events DATE: Wednesday, January 21, 2009 Thriving Leaders in TIME: 8:00 am - 11:30 am Challenging LOCATION: Dunwoody College of Technology (map) Economic Times COST: X129.00 or group rate is 4 attendees for $475.00 February 23, Zoos 8:OOam - 11:30am Re.gs.k..e. r On. line ,.~". ~ ~~"+~'} -' " r '~'~ Using Green to Grow Come learn how to maximize leadership effectiveness at every level of your Your Business or anization. You will hear from Indust ex erts about creatin a culture that allows 9 rY P 9 March 18, Zoos 8:OOam - 11:30am everyone to better meet organizational goals. Whether a supervisor, manager, or Regster. Online. executive, each person deserves the opportunity to improve their skills to help impact bottom lines results! Print Showcase February 19, 2009 Dunwoody College of Speakers include: Technology, Minneapolis • Jim Carr, Vice President, Vision One Coaching & Consulting {Burnsville, MN) 1:OOpm - 5:OOpm For anyone in • Bill Doty, President, NRCS, Inc. (Ham Lake, MN) marketing, advertising, • Jan Nepola, Business Growth Specialist, Enterprise Minnesota design or communications...Plan now to catch the latest Followed by a panel with: on printing, paper, and finishing! Join us as we go Back to the Greg Closser, President, All Flex Acquisitions, LLC (Northfield, MN) Basics, with sessions • Mike Jensen, President, Gauthier Industries (Rochester, MN) on Digital vs. Offset • Amy Karrow, HR Manager, Engineered Products Co. {Minnetonka, MN) and How to Choose Don Hayward, President, Engel Diversified Industries (Jordan, MN) Your Green Printer. Admission is free if you pre-register online Register Today at www.enterpriseminnesota org by February 6; $10 at , the door. Registration open now: visit For questions or more information email events c~enterp.rseminnesotaorg or call our ww_w pimnorg and events line at 612.455.4239. click on Classes. Sponsors: First Alley Chats of 2009 January 22, 2009 • u~~a~l~~ ~~ ~~ AGA Medical, Minneapolis Regs.terOnlm..e. ~ i Xcel Energy/MnTAP Training 1/9/2009 Growing UP in a down economy Page 1 of 3 StarTrlblune.com MNEAPCLIS - ST. PAUL, MIt+II~IESaTA Growing UP in a down economy By Dee DePass, Star Tribune December 28, 2008 Ideal Aerosmith recently ran radio ads seeking four new technical-assembly workers for its East Grand Forks, Minn., plant. The company got more than it bargained for. Thirty-six people showed up at this month's job fair. "We were surprised. We would have been happy with 15," said Barbara Schultz, a senior vice president. The company's location usually makes it tough to get candidates, she said. No more. Resumes have flooded into Ideal Aerosmith since word spread that the company is growing despite the economy. It already has inched up by five workers this year, to 110. And this month, it hired an engineer, a technical buyer and four assembly workers. Schultz, asked if the recession might force cutbacks, said no way. "It's hard to say 'cut back' when we are trying to grow right now," she said. "Our capacity is pretty much tapped. While [the economy] is in the back of our minds, we are not dwelling on it." Ideal Aerosmith, which makes avionics testing equipment for the armed forces and for commercial contractors, represents the flip side of this economy: small, fast-growing companies that are avoiding some of the woes that have beset larger firms. While 3M, Andersen Corp., Hutchinson Technology, Best Buy, Tenant, Graco, Pentair and other big-name Minnesota-based companies shed 7,000 workers since September, dozens of small Minnesota manufacturers are growing and hiring. Those medical and high-precision parts makers, rent-to-own auto dealers and defense firms are investing in new equipment and expanding as if the boom times still were here, note economists and economic-development bureaucrats Stark contrast The growth lies in stark contrast to what the 10,000 member National Association of Manufacturers is seeing: thousands of layoffs and billions of dollars in cost reductions reported in recent weeks. Nationally, manufacturers whacked 600,000 jobs this year, including 85,000 last month. Ideal Aerosmith and companies like it are exceptions. Companies thriving in the midst of http://www.startribune.com/templates/Print_This_Story?sid=36757159 1/9/2009 Growing UP in a down economy Page 2 of 3 a global recession tend to be innovative and offer customized, high-tech and engineering services in niche industries. "These people are either investing, buying or growing in some way," said Bob Kill, CEO of Enterprise Minnesota, the quasi-government business assistance group that helps small manufacturers pare waste and raise productivity. "Nimble small companies can take advantage of [this economy] if they have invested previously in their own plants and equipment," Kill said. He said small Minnesota manufacturers that are avoiding layoffs and beating the economic doldrums include the medical device firm Avicenna Technology in Montevideo and Jordan Transformers in Jordan, which does refurbishing work. Metal Craft in Elk River recently added workers and celebrated a new plant opening, Kill said. And tunneling contractor Akkerman Inc. in Brownsdale added skilled employees, as did display-case maker Felling Products in Waite Park. Cliff Waldman, an economist with the Manufacturers Alliance/MAPI, noted that today's trendsetters often are firms that previously updated their plant equipment, streamlined production processes or worked to enhance efficiencies, delivery time and ultimately, profits. Getting outsourced work Ideal Aerosmith has enjoyed growth in both its commercial and military product lines, Schultz said. "One reason is because of defense and some new markets we are getting into. The other reason is that larger commercial companies are outsourcing what they don't want to do anymore," she explained. Ideal caught business from Honeywell, Lockheed Martin, Alliant Techsystems and other high tech and defense firms. With the war expected to drag on in Afghanistan, if not in Iraq, defense firms are buying parts and expanding their civilian commercial divisions. Douglas Machines, which makes giant robotic packaging machines in Alexandria, Minn., for Pepsi, Frito Lay and others, just hired 30 workers and plans to add a few new engineers this month to its staff of 540. Annual sales jumped 5 percent and earnings rose 10 percent this year, said Vern Anderson, who expects similar earnings next year. Last year, Douglas Machine improved its factory floor plan, expanded its Alexandria plant and consolidated operations, closing its plant in Deerwood, Minn. It also beefed up its research and development and expanded into a new business -- building automated DNA testing machines for seed companies. "We don't sit back," said Anderson. "We give it our all." Utility vehicles selling http://www.startribune.com/templates/Print_This_Story?sid=36757159 1/9/2009 Growing UP in a down economy Page 3 of 3 Chris Carlson, president of Sportech, Elk River, which makes enclosures, roofs, doors, quick-release parts and other supplies for Polaris, Arctic Cat, John Deere and other makers of rugged utility vehicles, said design innovation and strong demand have been the key to his company's growth. "The truth is that this market is still growing. The utility vehicle market is solid and strong. People are buying them," Carlson said. "So despite what you read in the newspaper, not everybody is ready to file bankruptcy. People are still buying these vehicles." That's why Sportech doubled its plant size in October, hired 40 new workers and plans to add 10 more next year. "In 2009 we think that business will be up. We're projecting 20 percent growth," Carlson said. Jim Haglund, owner of Central Container in Brooklyn Park, hired nine people this year and recently signed asix-figure contract that will require overtime work through the holidays. His company generates more than $30 million a year in packaging goods and making corrugated display cases for companies such as Best Buy, Target and Sam's Club. Haglund said he picked up business by spending several million dollars on new specialty die cutting and gluing equipment to make unique corrugated display cases, such as those with clear plastic windows. "It helps separate us and puts us into a specialty part of this business," Haglund said. But Haglund said he's still unsure about the future. "I am forecasting next year from zero growth to a negative 15 percent," he said. Regardless, he doesn't intend to lose a single member of his newly expanded staff. "We are going to try to inflict the least amount of pain as possible with our workers," he said. "If the time comes, we will ask for voluntary time off ... and what we will probably do is go down to reduced hours corporate-wide to a 35-hour week." Recession or not, Haglund said, it's important that workers keep their health insurance. "Because I came from a farm in northern Minnesota and I stared out with just $15,000 years ago, I can't imagine coming home during the holidays and telling my family that I don't have a job." Dee DePass • 612-673-7725 ©2009 Star Tribune. All rights reserved. http://www.startribune.com/templates/Print This_Story?sid=36757159 1/9/2009 Page 1 of 3 Mehelich, Catherine From: Enterprise Minnesota [reply@enterpriseminnesota.org] Sent: Wednesday, December 31, 2008 9:35 AM To: Mehelich, Catherine Subject: December 2008 eTrends e ~~~~~~t. ~~~~ MII~iNESCt"rA A F+UBLIC.~TIC)N C)F December 2008 Helping. f'A~nuf~oturir7~ raterprlsr~s C3row ~rofit~bty Enterprise Minnesota Set to Release State of Industry News M f i t P ll R lt New Hirino: Richard Lunsford has anu ur ng ac a esu s been named President and Chief Executive Officer at Anulex .. ... . ............... In early February, Enterprise Minnesota will Techrlo.loges, aMinnetonka- based medical device release findings from the first ever State of manufacturer. Lunsford Manufacturing Poll, a statewide survey previously served as Senior Vice research project that includes more than 400 ~~TE~~~ President and President of US Commercial Operations at ev3, hone curve s with manufaCturin P Y 9 1~11NhJE~~-1-~ Inc., a medical device executives, and nine focus groups. manufacturer in Plymouth. "This is a critical time far many Minnesota employers, says Bab Kill, Top Area for Business: For the second straight year, the president & CEO of Enterprise Minnesota. "Our goal is to Minneapolis-St. Paul metropolitan understand what is important to small and midsize manufacturers, area was named the best metro where they see opportunities, and where they see challenges. area for business by Ma_r...k..ett!Vatch. Boston ranked "I think this will really be an interesting eye opener," he added. second and the top five rounded out witn Denver, Washington D.C., and Richmond, VA. Kill expects the survey results to be very valuable because Rankings are based on data manufacturing is such a large part of Minnesota's eCOnomy. " available in eight categories, ranging from numbers of Manufacturing is significant to the health and well being of establishments to job growth. Minnesota's economy, and these poll results will give an indicator of where we're at in the industry's progress," Kill Said. MnTAP Intern Program: The Minnesota Technical Assistance A recent study by the Minnesota Department of Employment and (MnTAP) at the University of Minnesota is accepting Economic_Developn~enk (DEED}, found that more than one in ten applications for companies to Minnesota jobs are in manufacturing. Each one of these jobs participate in the MnTAP intern supports another 1.3 related jobs -meaning that nearly 800,000 program. Companies interested in participating in the MnTAP jobs in Minnesota are associated with the manufacturing industry. intern program are encouraged to That equals 29 percent of the state's workforce. visit the MnTAP web site (www.mntap.umn.,ed....u..) and These manufacturing jobs pay higher than average salaries submit a project proposal before February 1, 2009. according to DEED. In 2007, a manufacturing employee in Minnesota received an average $1005 weekly wage, compared In The Headlines with $853 for all industries combined. GAP Gran..t Helps. F!_OE TAnd the state's manufacturing exports continued to grow through International (Voyageur Press of the third quarter 2008, up 8.6 percent from the same period a year McGregor, 12/2/2008) ago to $4.5 billion according to DEED. Through the third quarter, Growing_UP in a Down Economy Minnesota exports have grown 9.5 percent to $13.1 billon. The (Star Tribune, 12/29/2008) 1 /6/2009 Page 2 of 3 state is on pace to break last year's export record of $16.2 billion While exports have grown, accompanying job losses in the industry temper public perceptions says Kill, but he expects the survey results to provide insights into those numbers. Enterprise Minnesota collaborated with sponsors Bremer Bank, Larson Allen, LLP, RJF Agencies., and Minnesota's State Col.leg.e. s and_Universties to make the survey a reality. "The type of information that we're asking for in this poll has not been readily available," Brent Terhaar of Larson Allen said. "Having that is going to help figure out where we are and where we're going in the future." Results will be available in book farm, and published in part in the January/February issue of Enterprise Minnesota magazine. Manufacturers Benefit from Growth Acceleration Program From Albert Lea to the Iron Range, Enterprise Minnesota is showing state legislators the value of the Growth Acceleration Program (GAP) to their area man ~ '~' Since October, Enterprise Minnesota president & CEO, Bob Kill has traveled throughout Minnesota, touring over 20 client companies with local area legislators to share how GAP resources are helping companies and company employees "Our local businesses provide goad jobs, and we need them to be able to have access to these types of programs," State Senator Linda Scheid said at a visit to Central Container in Brooklyn Park on December 12 GAP is exciting forjob retention and potential job growth in companies." "I think GAP provides small manufacturing and manufacturing-related companies with a matching grant to implement new techniques to compete and continue a commitment as employers, job creators, and contributors in local community life. "GAP is particularly important during these economic times," Enterprise Minnesota President Bob Kill said. "Nearly every business owner we speak with emphasizes the need to invest in business development. GAP 7ri M G.raphics._.E...x.perienc...e...s Growth_D.. uring .R..e..cessio...n (Owatonna Peop/e's Press, 12/30/2008) Upcoming Events Developing Leaders at All Levels in Business January 21, 2009 -Dunwoody College of Technology, Minneapolis 8:OOam - 11:30am Reg.ster.Onlne Come learn how to maximize leadership effectiveness at every level of your organization. You will hear from industry experts about creating a culture that allows everyone to better meet organizational goals. Experts include: • Mike Jensen, President, Gauthier Industrie • Jim Carr, Vice President, Vision One Coaching & Consulting • Amy Karrow, HR Manager, Engineered Products Company • Don Hayward, President, Engel Diversified Industries • Mary Connor, Enterprise Minnesota Business Specialist • Jan Heploa, Enterprise Minnesota Business Specialist Register Taciay._0..n.line Thriving Leaders in Challenging Economic Times February 23, 2009 8:OOam - 11:30am Register_OnGne Using Green to Grow Your Business March 18, 2009 8:OOam - 11:30am Register_Online Print Showcase February 19, 2009 Dunwoody College of Technology, Minneapolis 1:OOpm - S:OOpm For anyone in marketing, advertising, design or communications...Plan now to catch the latest on printing, paper, and finishing! Join us as we go Back to the Basics, with sessions on Digital vs. Offset and How to Choose Your Green Printer. Admission is free if you pre-register online by February 6; $10 at the door. Registration open now: visit www.pimn.org and click on Classes. 1 /6/2009 Page 3 of 3 can be a major part of that investment." Authorized in 2007 by the Minnesota State Legislature, the Growth Acceleration Program (GAP) allows manufacturers with fewer than 100 employees to receive up to $25,000 per year toward projects intended to help the company grow. The business must match any GAP money awarded. That means a maximum of $50,000 per company, per year, including a 50 percent match. More than 50 companies statewide have received GAP grant monies in just the last year. Enterprise Minnesota will meet with more legislators into early next year to ensure that funding for GAP is in mind. On a recent visit to Interscapes, Inc. a Minneapolis-based architectural woodworking company, State Senator Linda Higgins considered the outlook for the 2009 Legislative Session."We've started conversations about how the session is going to go and what the priorities are going to be, and we all agree that there has to be a jobs focus," State Senator Higgins said. "GAP fits very well into that goal." Learn More_About_k-iow GAP Works.. See_Photos__From _the Tours.. ~~ ~~~ ~~C~~1 l ~~~~ l~ Forward email First Alley Chats of 2009 January 22, 2009 AGA Medical, Minneapolis Regste.r_..0.. mine Xcel Energy/MnTAP Training • February 3, 2009: Motor Systems Management • February 4, 2009: Fan System Assessment Tool • February 5, 2009: On- Site Assessment: Smith Foundry Registration Closes January 9, Click Here for more info Do you have news or events to submit? Would you like to submit an article? Email Nate Duoss or call 612.455.4213 far mare information ~"'~ t31 SafeUnsubscribe~ This email was sent to cmehelich@ci.elk-river.mn.us by re.p...ly@enterp.r..isemnn_esota...org. Update Profile Email Address I Instant removal with 5afeUnsubscriber"' (Privacy Policy. Enterprise Minnesota 1310 4th Ave. S I Suite 7070 I Minneapolis I MN 155415 Email Marketing by ~~~~ TRY IT FitEE 1 /6/2009 ENTERPRISE MINNESOTA Growth Acceleration Program Offering key resources to provide an "economic boost" to small manufacturers What is GAP? The Growth Acceleration Program (GAP) is a state grant program that provides small manufacturing and manufacturing-related companies with needed resources to help them stay in business, compete, and continue their commitment as employers, job creators, and contributors to local community life. How does GAP work? Under the Growth Acceleration Program (GAP), manufacturers with fewer than 100 employees can receive up to $25,000 per year toward projects intended to help the company grow. The business must match any GAP money awarded. That means a maximum of $50,000 per company, per year, including a 50 percent match. What can GAP resources be used for? GAP funds can be used for virtually any business project short of capital investments, as long as they enhance the operation of a small manufacturing, manufacturing-related, or service company. Marketing and product development are possible areas for project funding as well. Who administers the GAP grant resources? The $750,000 approved for GAP as one-time money over atwo-year period is funded through the Minnesota Department of Employment and Economic Development and administered by Enterprise Minnesota. Can GAP funds be applied anywhere in Minnesota? Yes, since the program launched, close to 50 companies have qualified and received GAP funding to access business services. From Albert Lea, to the Twin Cities, and up to the Iron Range, manufacturers throughout the state are using GAP funding to help grow their business. From the initial $750,000, these companies have implemented strategies that ultimately created $1.7 million in value. Will GAP resources be available in 2009? Legislation will be introduced during the 2009 Minnesota Legislative Session to continue authorizing GAP resources for the 2009-10 biennium. "The idea behind the Growth Acceleration Program is to aid small businesses with their technological needs. Often times, they either don't have the resources, knowledge, or time - or the combination of all three - to get up to speed on the latest technology that might help their business grow and prosper and maybe even create new jobs." Minnesota State Senator David Tomassoni Chief Author of GAP Legislation "GAP is about helping companies with business improvements, helping them with the business side of improving job creation, and the job growth potential of their companies." Bob Kill Enterprise Minnesota President & CEO "Funding fox GAP is now more crucial than ever, especially during a time when Minnesota needs to persist in its efforts to promote and grow a diverse and vibrant manufacturing sector in order to compete in the global economy. Our local communities and employees depend on the economic security that these businesses provide." Maynard Akkerman, President Akkerman Inc. (Brownsdale, MN) a NIST I Network MEP Affiliate 310 4'~' Avenue South, Suite 7050, Minneapolis, MN 55415 612-373-2900 800-325-3073 Fax 612-373-2901 www.enteroriseminnesota.org