Executive Directors Report HRSR 04-06-2009ver
MEMORANDUM
TO: Economic Development Authority
Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: March 9, 2009
SUBJECT: Executive Director's Report
The purpose of this periodic memorandum is to keep the EDA and HRA informed of
various ongoing activities of the Economic Development Division. EDA and HRA
Commissioners should feel free to bring up any questions or issues for discussion under the
"Other Business" section of the Agenda.
Foreclosure Initiatives
The strategies to address foreclosures in Elk River are 3-fold - 1) Prevention 2) Preserve &
Secure and 3) Recovery. A great amount of staff time is being spent developing and
maintaining a comprehensive system to track and share data on foreclosures, vacant
properties and status of utilities in a way that can be easily updated and shared with the
appropriate city departments to ensure foreclosed/vacant homes are preserved and secured
from incurring damage. This data will continue to be helpful in identifying neighborhoods
and homes in which the recently awarded $593,820 Neighborhood Stabilization Program
(Foreclosure Recovery) Funds can be used. We anticipate a large share of staff time will be
dedicated in the next two months to developing the program details with Tri-Cap,
completing federal clearance requirements and in marketing the program to the community,
lenders and realtors. In addition, a great deal of staff time is being spent on public
communication efforts to inform Elk River residents about foreclosure prevention
counseling services and encouraging neighbors who suspect vacant homes to contact the
city.
Broker/Developer Marketing
In follow up to last year's successful event, Sherburne County is planning to host second
Development Roundtable event this spring/summer. Staff is participating in the planning
and joint marketing discussions. More details will follow as they become available.
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In addition, staff is scheduling follow up meetings with several brokers and developers who
recently completed industrial projects in the community to continue to foster the positive
relationship and opportunities for development referrals to Elk River.
Post Office Property Update
Staff was recently contacted by the broker for the 4.5-acre land site located at the NE corner
of Line Ave and Co. Rd 12 and owned by the Post Office. In late 2007 the EDA considered
acquisition of the property for the purpose of securing and marketing the site for higher-end
retail or restaurant development. The EDA chose not to pursue acquisition based on the
asking price for the property. The broker has indicated a "willingness to consider a
reduction from the original sale price" and requested the EDA's reconsideration. If this is
something the EDA wishes to bring back for discussion, please notify staff so it can be
added appropriately to a future EDA agenda.
Commissioners have recently inquired about the status of the Post Office relocation from
Railroad Drive to the property near the former Target store. According to the Building
Official, the Post Office continues to make progress on the interior improvements. Staff is
awaiting a response from post office officials for an anticipated opening date.
Commercial/Industrial Sites Inventory
In Fall 2007, commercial sites were added to the City's listing of available land/lease sites
that is posted on the city website. Recently staff converted the in-house prepared listing to a
direct link to the MetroMSP website ~~-ww.metrotnst~.org. This website is the most
comprehensive and reliable listing of C/I property and relies heavily on listing information
provided by licensed brokers/MNCAR members.
MN Business Assistance Reports
Staff is working to complete the annual MN Business Assistance Reports which are required
for any business subsidies of $25,000 or more provided by public entities. The reports
indicate the business's progress on job and wage goals established by the city. These reports
are due to the MN Dept of Employment & Economic Development in April.
Recent Inquiries/Prospects
Staff has experienced a slowdown u1 commercial/industrial inquiries relative to the
slowdown in the economy. The trend appears to be that developers are more risk-sensitive
to undergo land investments or speculative development and are relying on build-to-suit
developments at this time. Staff recently subscribed to the MN Commercial Association of
Realtors (MNCAR) which will provide a tremendous amount of data on C/I space in Elk
River and surrounding communities, email blasts on prospects, and opportunities to network
directly with the broker/developer community.
Mississippi Connections -Downtown Redevelopment Study
In follow up to City Council's direction at its January 2009 meeting, staff is contacting
Taskforce members for their interest in serving sometime this summer to complete the draft
study.
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