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HomeMy WebLinkAbout08-16-95 ECONOMIC DEVELOPMENT COMMITTEE AGENDA Wednesday, August 16, 1995 8:00 a.m. Army Reserve Center 4655 North Lexington Avenue 1. Call to order. 2. Approve minutes from July 20, 1995 meeting. 3. Monthly Report. 4. Minnesota Business Tracking System, Quarterly Report. 5. Land O' Lakes. 6. Gateway Business District. 7. Miscellaneous. • 8. Council Comments. 9. Adjournment. Please Contact staff if you are unable to attend this meeting. Economic Development Committee Meeting Minutes Thursday, July 20, 1995 8:00 a.m. Army'Reserve Center 1. The meeting was called to order at 8:06 a.m. 2. Present were: Dan McCallum, Steve Freimuth, Ray McGraw, Arnold Lindberg, Tom Steele, Terry Nagle, Tom Goblirsch, Councilmember, Beverly Aplikowski, and Community Development Director, Kevin Ringwald. Absent was Rob Carlson. 3. Minutes from the May 17, 1995 meeting were approved. 4. Monthlv Report Staff updated the Committee on various projects being considered in Arden Hills. The Committee briefly discussed the CSM\DynaMark project and the redevelopment of Arden Plaza. 5. 1995 Legislative Session Summary Staff updated the Committee on new legislation which may affect development\redevelopment activities in the City. 6. Everest Development Agreement\Gateway Business District Staff updated the Committee on the status of the negotiations between Everest and the City, as it pertains to the Gateway Business District (GBD). Staff informed the Committee of the development issues and the upcoming City Council Worksession where this item will be discussed. Staff also informed the Committee of companies who have expressed an immediate interest in locating in the GBD. The Committee, after some discussion, made a motion to encourage the City Council to take decisive action on the GBD at its upcoming Worksession. The motion passed unanimously. 7. Miscellaneous Mr. McGraw updated the Committee on various planning activities. Councilmember Aplikowski updated the Committee on various City Council decisions and activities. 8. Meeting adjourned at 9:15 a.m. 9. The next meeting is scheduled for Wednesday, August 16, 1995 at 8:00 a.m. s • CITY OF ARDEN HILLS • MEMORANDUM DATE: August 14, 1995 { TO: Economic Development Committee FROM: Kevin Ringwald, Community Development Director SUBJECT: Monthly Report The following is a brief list of staff contacts over the past several weeks. 1. Manufacturing Company Staff has been in contact with a manufacturer who wishes to relocate their facilities to the North Metro Area. The facility is 60,000 square feet of light manufacturing and would provide 60 jobs. 2. Office/Manufacturin2 Companies Staff has been in contact with a Real Estate Broker who has two clients who wish to locate adjacent to 694. The first client is a 100,000 square feet office use and the second • is a 70,000 square foot light manufacturing use. 3. Hom Oak and Leather Staff is continuing to meet with representatives of Hom Oak and Leather. They continue to express a desire to locate their prototype corporate office/retail/manufacturing facility in the Gateway Business District. 4. Medical Manufacturing Company Staff has been in contact with a Medical Manufacturing company who wishes to construct a 200,000 square foot corporate headquarter on 12-20 acres of land. 5. Arbv's/Grocery Store Staff continues to work with both uses to accommodate them North of Shannon Square. The final market analysis on the Grocery Store is anticipated in the next Seven (7) to Ten (10) days. KR\jt • • CITY OF ARDEN HILLS MEMORANDUM DATE: August 16, 1995 TO: Economic Development Committee FROM: Kevin Ringwald, Community Development Director SUBJECT: Minnesota Business Tracking System, Quarterly Report Attached the Committee will find the Quarterly Report of the Minnesota Business Tracking System. The report was prepared by the Minnesota Department of Trade Economic Development(DTED). The DTED Business Tracking Report (BTR) examines the dynamics of business growth and decline in Minnesota, providing a better understanding of the process of job creation and of the competitive position of the various regions of the state. The BTR documents the ebb and flow of business activity in Minnesota by tracking business start-ups and failures, and major expansions and contractions around the state. While net employment change statistics are widely available and very useful, they do reveal the "churning" of business activity as jobs are created and lost in the economy. Information about this underlying activity provides a clearer picture of the vigor of Minnesota's regional economies. The BTR also tracks Minnesota manufactures that have ceased operations in Minnesota, including those that have moved out of the state to determine the cause of those dissolutions or relocations. This information is provided only for your information. KR:jt • i�c�ST n ♦ a; O ♦ ++0 State of Minnesota Department of Trade and Economic Development • Business Tracking System Quarterly Report Minnesota Business Births. Dissolutions. Expansions and Contractions �r � 1 f • • • June 1995 Table of Contents Page • Minnesota Statewide Analysis . 1 Regional Analysis . . . . . . . . . . . . . . . . 4 Northwest Region . . . . . . . . . . . . . 6 West Central Region . . . . . . . . . .. . . 7 Northeast Region . . Southwest Region . . . . . . . . . . . . . . 9 Central Region . . . . . 10 Southeast Region . . . . . . . . . . . . . 11 Twin Cities Area . . . . . . . . . . . . . 12 I Terms. Definitions and Sources . . . . . . . . . 13 • Economic Expansion Picked Up During Third Quarter 1994 The U.S. and Minnesota economies showed renewed vigor during the third quarter of 1994. Sizable wins in employment and real income and a buoyed consumer confidence continued to sustain the healthy growth of consumer spending which, in turn, stimulated the economy. This _ economic strength blunted the potential adverse effects of four successive interest rate hikes • early in the year, but also prompted the Federal Reserve Board to raise discount rates two more times during the second half of 1994. Nfinnesota Increased hiring by Minnesota businesses pushed state unemployment rates near historic lows this quarter. The Department of Economic Security reported tightening in several local labor Statewide markets. This strong labor demand resulted in employees working longer hours and earning Analysis more. The number of new businesses and new jobs increased by more than 14 percent over the previous quarter, and the number of business closings and job losses declined by more 3rd Quarter, 1994 than I3 percent. New businesses created 2.5 additional jobs for every job eliminated by closing businesses. .,ury 1993 Jan.1995 2350 2338 2326 Wage and 2314 Salary 2302 Employment'22 Seasonally 2276 Adjusted (1,000) 2266 2.254 2242 2230 4% 2.9 3% 2,6 Business Birth 2.3 and 2.1 Dissolution 2% Rates 1s 1.4 "Rate • - - _ _ - , _ Dia6dueOn Pate II 0% 3n1 Quarter,1993 atn Quarter.1993 1st Quarter,1994 2110 Quarter,1994 3ra Quarter,1994 Manufacturing Expansions Surged Ahead of Retail Trade . ,r A surge in Minnesota manufacturing and few large retail expansions produced twice as many expansion Jobs in manufacturing as in the large retail trade industry. The number of expanding manufacturers increased l9 percent over the previous quarter, and added 3/ percent more jobs. A strong nationwide demand for computers, electronic products and other consumer durables boosted employment among Minnesota's manufacturers of industrial machinery and computers. electrical and electronic components, transportation equipment and scientific instruments. Interestingly, nearly two of every three new and expansion jobs in manufacturing occurred in Greater Minnesota. Computer programming and data processing services also continued its growth, while chemical manufacturing and defense-related industries lagged behind. With a favorable growing season in 1994, the farm sector, food manufacturing, and related transportation sectors scored large revenue and job wins compared to the flood-ravaged 1993 season. The good weather also allowed state and local governments and their construction • contractors to finish repairs on flood-damaged roads and other public facilities. ) Temporary Help Agencies Contributed to Expansion of Service Jobs The service industry was the largest source of expansion jobs during this quarter (38 percent • share). Among service businesses. temporary help agencies supplied one of every four expansion jobs. It is important to note that these temporary help employees are workers leased • to other businesses such as manufacturers, wholesalers. bankers, retailers and other employers. Use of temporary workers became prevalent nationwide during recent surges of economic activity. Minnesota i Business activity in the mortgage lending industry and related industries in finance, insurance and real estate was depressed by rising interest rates. In this sector. job losses from business Statewide contractions increased 70 percent from last quarter. Analysis Large Businesses Created More Jobs 3rd Quarter, 1994 While most new businesses started with fewer than 50 employees, there were significant large business start-ups in manufacturing, retail trade and services. These large star-ups created nearly twice as'arriany jobs as the previous quarter's large start-ups. and they contributed up to 33 percent of new start-up jobs in these industries. Moreover. mature large companies increased expansion hirings by 2') percent during this quarter, contributing 21.400 additional jobs to the economy. Number of Business Establishments* Births Dissolutions Expansions" Contractions" Total Industry No.Rate(%) No.Rate(%) No.Rate(%) No.Rate(%) Estab."" Aariculture D D D D D ^ 2 815 Mining D D 0 0.0 D D 4 2.1 191 Construction 392 3.1 -295 -2.3 129 1.0 122 1.0 12,780 Manufacturing 190 2.2 -79 -0.9 177 2.0 71 0.8 8,876 Trans.Comm,Utilities 159 2.7 -102 -1.7 41 0.7 43 0.7 5.826 Wholesale Trade 361 2.6 -240 -1.7 66 0.5 35 0.2 14.098 Retail Trade 552 2.0 -550 -2.0 119 0.4 81 0.3 27.772 Finance, Ins, Real Estate 298 2.4 -201 -1.6 24 0.2 48 0.4 12.653 Services 1,391 3.1 -829 -1.9 365 0.8 265 0.6 45.050 Public Administration 12 0.5 D D 89 3.5 D D 2.525 TOTAL 3rd Qtr., 1994 3,446 2.6 -2.353 -1.8 1,029 0.8 697 0.5 132.586 TOTAL 2nd Qtr., 1994 3,012 2.3 -2.719 -2.1 981 0.7 753 0.6 - TOTAL 3rd Qtr., 1993 3,669 2.9 -1,741 -1.4 1.145 0.9 988 0.8 Number of Jobs* Births Dissolutions Expansions" Contractions" Total Industry No.Rate(%) No.Rate(%) No.Rate(°o) No.Rate(%) Jobs... Agriculture D D D D D u D D 21.971 Mining D D 0 0.0 D D -72 -0.9 8.080 Construction 737 0.9 -187 -0.2 2.623 3.2 -2.457 -3.0 93.565 Manufacturing 616 0.2 -253 -0.1 5.321 1.3 -2,266 -0.6 403.370 Trans.Comm,Utilities 319 0.3 -132 - -0.1 1.161 1.1 -1.035 -0.9 106.630 Wholesale Trade 754 0.5 -341 -0.2 1.164 0.8 -688 -0.5 142.210 Retail Trade 4.580 1.1 -1.769 -0.4 2.560 0.6 .1.468 -0.4 413.950 Finance, Ins. Real Estate 771 0.6 -234 -0.2 384 0.3 -1.164 -0.8 136.259 Services 3.191 0.4 -1,508 -0.2 9.717 1.3 -5,081 -0.7 745.513 Public Administration 12 0.0 D D 2.040 3.1 D D 89.890 TOTAL 3rd Qtr., 1994 11,234 0.5 -4.472 -0.2 25.379 1.2 -14.673 -0.7 2.161.438 TOTAL 2nd Qtr., 1994 9.588 0.5 -6.623 -0.3 21.886 1.1 -16.558 -0.8 - TOTAL 3rd Qtr., 1993 10.795 0.5 -4.432 -0.2 28.809 1.4 -26.406 -1.3 • The rates in this table are baseti on tnmls(ram previous quarters. " Covers only mutor expansions and contractions. • Tnaai estaoli.simients atui total jabs. 3rd Quarter. 1994. unudmsted for iate or mi.ssnr, emmover reports t) = Supprr.csed to avoid dist arsure of rndmiduui t ompana data. hnn Srr nnrc on Yuen O of Report Ina Terms. Definrnmts and Sour, Survey of Manufacturers — Fourth Quarter 1993 through Third Quarter of 1994* During the third quarter of 1994. 32 failed indAfaciurers were surveyed to determine the . cause of dissolution and to identifv those moving from the state. Oniv one company reported moving out of Minnesota during this quarter. • Of the 231 manufacturing dissolutions that occurred during the one year period ending third quarter, t994, Financial difficulty was the most prevalent cause of business dissolution. Ninety-two businesses (40 percent') cited financial difficulty as the reason for discontinuing Minnesota operations. An additional t9 firms (8 percent) cited a combination of circumstantial and financial Statewide reasons for their business dissolution. Eight tirms (3 percent) consolidated their businesses with an Analysis out-of-state company. A total of 17 firms.(7 percent) employing over 360 workers moved out of Minnesota. These 17 firms cited taxes (including income, sales and property taxes) and 3rd Quarter. 1994 worker's compensation and unemployment insurance as significant in the decision to move. Manufacturing firms that moved out of Minnesota during, the past four quarters went to [he following states: California (1). Illinois (1), Iowa (2), Massachusetts (2), Michigan (1), North Carolina (1). North Dakota (t) and Wisconsin (8). Since the survey began in the third quarter of t99t. a total of 779 dissolved manufacturers have been surveyed. A total of 46 manufacturers were determined to have moved out of state and 28 (61 percent) of those moved to the border states of Iowa. North Dakota, South Dakota and Wisconsin. Cause of Manufacturing Business Dissolution (Fourth Quarter 1993 through Third Quarter of 1994) Other 19 Total number of business • dissolutions = 237 Moved out of state 17 Moved witftin state 4 Cause of dissolution/ Consolidated with operations in another state 8 e unknown 73 Consolidated with another MN!oration 9 Oeathiretlrement of owner 6 Lack of technical assistance&support from state 3 rinancial reasons 92 Reason for Move to Another State (Fourth Quarter 1993 through Third Quarter of 1994) High workers'compensation/ unemoloyment compensation costs 3urcensome state-moosea;axes Good incentives from other cities/states Moved closer to markets and/or suppliers — Significant Burdensome state-imposed regulations _ Most Significant Unsuitable land and/or facilities - Inadequate public services Insufficient local capital 0 2 4 6 8 10 Number of Movers • Naret Two categories listed in the survey. insufficient skilled labor and high wage costs. were not cited us stentjrcant reasons to more ;,v unv of the resporidenis. < This survev dues not include discontinued businesses in other industries. especiadit whoiestaine and:rucking. In addition. the m—ev Ines not include businesses that have chosen to expand outside of.Ninnesota or those that were not able:o exnrmd m:Ninnesnta because of hieh state-unposed costs. 3 Manufacturing and Service Businesses Boost Hirings in Northwest and West Central Regions New businesses in the Northwest region created three times as many jobs as the previous quarter's start-ups, resulting in a rate of job creation well above the other six regions. Although the Twin City Area had a higher rate of business start-ups (2.9 percent) compared to the Northwest region (2.4 percent), new businesses in the Northwest region tended to be larger than in the Twin City Areas Regional Large manufacturing and service companies in the Northwest and West Central Regions continued Analysis major expansions after a turn-around in eariv 1994. In the Central and Southern regions, major business expansions improved markedly over the previous quarter, raising their rates of new . 3rd Quarter, 1994 job creation to the state average. In these regions, expanding manufacturing companies created more jobs than expanding retail trade. In the Twin City Area, major manufacturing expansions continued from the previous quarter, while retail trade experienced a slowdown. Northwest Region More than Doubled State Average Rate of New Job Creation 3 2 Percent of Wage and Salary Jobs 1.1 1 - •0.5 0.5 0.5 0 4 0'6 0.5 0.5 0 • Statewide Northwest West Central Northeast Southwest Central Southeast Twin Cities Region Region Region Region Region Region Area Northwest and West Central Regions Led in Rate of Job Creation from Business Expansions 3 2.2 Percent of 1.6 Wage and Salary Jobs 1.2 1.2 1.2 1.2 1.1 1 0.9 0 Statewide Northwest West Central Northeast Southwest Central Southeast Twin Cities Region Region Region Region Region Region Area • s Jobs Loss from Business Failures Declined in All Regions Due to an improved economy, the rate of job loss from business Failures declined in all regions. The rate dropped sharply in the .Northwest. West Central. Central and Southwest regions. Nearly three of every four jobs lost From business closures occurred in retail trade and service industries. Business closures were prevalent in those industries because of a high • proportion of volatile small businesses and strong industry competition. The rate of job loss from major business contractions declined in the southern regions to levels much below the statewide average. The Northwest and West Central regions also Regional showed below-average job losses from business downsizing. However. the rate remained Analysis relatively high in the Northeast region and Twin City Area. 3rd Quarter, 1994 Rate of Job Loss from Business Dissolution Declined in All Regions Percent of Wage and -0.2 -0.1 0.1 -0.2 -0.3 .0.2 -0.2 -0.2 Salary Jobs -1 • •2 • Statewide Northwest West Central Northeast Southwest Central Southeast Twin Cities Region Region Region Region Region Region Area Rate of Job Loss from Business Contraction Dropped Sharply in Southern Regions .r 0 Percent of 'Nage and Salary Joos 0.7 0.5 0.5 ;� 0.5 0.6 J.4 -0.9 - -2 Statewide Northwest West Central Northeast Southwest Central Southeast Twin Cities Region Region Region Region Region Region Area • • 5 Northwest Region Was State's Top Performer in Job Creation" Businesses in the Northwest region repeated their exemplar, performance of the previous . summer. This region was the state's top performer this quarter, showing the highest rates of job creation from business start-ups and expansions. and the lowest rates of job losses from . business dissolutions and contractions. The Northwest region had one-third more business start-ups during this quarter, and these new businesses were larger on average. Most start-up jobs were created in services, retail trade and Northwest manufacturing industries. Large manufacturers in the region led in business expansions. which Region strained the labor pool in some communities. There were also significant expansions in health services, education, social services. and local government. 3rd Quarter. 1994 Number of Business Establishments Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture D D D D D D 5 2.3 Mining 0 0.0 0 0.0 0 0.0 0 0.0 Construction 15 3.8 -10 -2.5 D D D D Manufacturing 8 2.9 0 0.0 7 2.5 D D Trans,Comm,Utilities 5 1.9 -4 -1.5 0 0.0 D D Wholesale Trade 6 1.9 D D D D D D Retail Trade 20 1.8 -15 -1.3 6 0.5 D D Finance, Ins., Real Estate 5 1.5 D D D D 0 0.0 Services 38 2.9 -19 -1.4 15 1.1 10 0.8 Public Administration D D 0 0.0 4 1.8 D D . TOTAL 3rd Qtr., 1994 108 2.4 -57 -1.3 36 0.8 25 0.6 TOTAL 2nd Qtr., 1994 81 1.8 -69 -1.5 24 0.5 21 0.5 TOTAL 3rd Qtr., 1993 74 1.7 -38 -0.9 28 0.6 30 0.7 Number of Jobs Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture D 0 D D D D -37 -3.0 Mining 0 0.0 0 0.0 0 0.0 0 0.0 Construction 19 0.9 0 0.0 D D D D Manufacturing 89 0).9 0 1 5.6 D - Trans.Comm,Utilities 7 0.4 -9 -0.5 0 0.0 D D Wholesale Trade 28 0.9 D D D D D D Retail Trade 194 1.9 -31 -0.3 99 1.0 D D Finance, Ins., Real Estate 7 0.2 D D D D 0 0.0 Services 238 12 -30 -0.1 324 1.6 -133 -0.7 Public Administration D D 0 0.0 99 4.3 D D TOTAL 3rd Qtr., 1994 604 1.1 -79 -0.1 1,181 2.2 -295 -0.5 TOTAL 2nd Qtr., 1994 186 0.4 -167 -0.3 438 0.8 -340 -0.7 TOTAL 3rd Qtr.. 1993 260 0.5 -50 -0.1 720 1.5 -586 -1.2 D = Suppressed to avoid disclosure of individual company data. • Normwest Region Counties. Behrami. Clearwater. Hubbard Kittson. lake of the Woods. Mahnomen. Marshall. Norman. Pennington, Polk. Red Lake and Roseau. Note: See notes on Page 13 of Report for Terms. Definitions and Sources. • Manufacturing Was Largest Source of New and Expansion - Jobs in West Central Region Compared to the previous quarter, the West Central region showed fewer business start-ups and start-up jobs. At the same time, there were fewer business dissolutions and job losses from dissolutions. 'However. several large employers in the region expanded, creating 23 percent more jobs than the previous quarter's expansions. Manufacturing start-ups and expansions picked up from last quarters' rebound. With retail trade and service industries slowing down, resource-based manufacturing and machinery Central t, manufacturing took the lead in new job creation. Downsizing among the region's businesses Region remained infrequent and had minor impact. 3rd Quarter, 1994 Number of Business Establishments Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(9'°) No. Rate(%j No. Rate(%) Agriculture D D D D D D 4 1.8 Mining 0 0.0 0 0.0 0 0.0 0 0.0 Construction D D -16 -2.6 8 1.3 D 0 Manufacturing 6 1.9 0 0.0 14 4.5 0 0.0 Trans,Comm,Utilities 7 2.6 D 0 D D 0 D Wholesale Trade 13 3.4 D D 0 0.0 D D Retail Trade 23 1.6 -14 -1.0 5 0.4 1 0.3 Finance, Ins., Real Estate 1.0 -12 -2.4 D D 0 0.0 Services 34 2.1 -10 -0.6 13 0.8 5 0.3 • Public Administration 0 D 0 0.0 7 3.4 0 0.0 TOTAL 3rd Qtr., 1994 112 2.0 -59 -1.1 52 0.9 20 0.4 TOTAL 2nd Qtr., 1994 126 2.3 -86 -1.6 47 0.9 19 0.4 TOTAL 3rd Qtr., 1993 1118 2.2 -75 -1.1 51 1.0 ?4 0.6 Number of Jobs Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture D D D 0 D D -51 -3.4 Mining 0 0.0 0 0.0 0 0.0 •0' 0.0 Construction D D -6 -12 143 4.5 D D Manufacturing 142 1.7 0 0.0 337 4.1 0 0.0 Trans,Comm,Utilities 3 0.3 D D D D D D '✓Vhciesale Trade .? Retail Trade 56 0.4 -20 -0.1 66 0.4 -59 -0.4 Finance, Ins., Real Estate 2 0.1 -26 -1.1 0 D 0 0.0 Services 14 0.2 -15 -0.1 249 1.1 -85 -0.4 Public Administration D D 0 0.0 193 6.5 0 0.0 TOTAL 3rd Qtr., 1994 333 0.5 -71 -0.1 1,032 1.6 -293 -0.5 TOTAL 2nd Qtr., 1994 469 0.8 -175 -0.3 836 1.4 -289 -0.5 TOTAL 3rd Qtr., 1993 271 0.4 -258 -0.4 1,036 1.7 -658 -1.1 D = Suppressed to avoid disclosure of individual companv data. Nest Central Counties: Becker. Clay. Douglas. Grant. Otter Tail. Pope. Stevens, Traverse and Wilkin. .Vote: See notes on Page 13 of Report for Terms. Definitions and.Sources. • 7 Small Businesses Dominated Start-ups and Expansions in Northeast Minnesota Small businesses dominated business start-ups this quaver. forming 24 percent more• new • businesses. However. these start-ups.created about 50 percent fewer jobs than the previous • quarter. There were also more small business dissolutions. involving fewer jobs than the previous quarter. Among the seven regions, the Northeast showed the poorest performance at job creation-it had the lowest rate of job gains from expansions and the highest rate of job Northeast losses from business contractions. Region Small wood product manufacturers accounted for most new and expansion jobs in manufacturing. No large retail establishment opened in the Northeast this quarter. Significant 3rd Quarter, 1994 sources of new and expansion jobs were found in the service industry, including hotels and motels. health services, education. social services and local government. Number of Business Establishments Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture D D D D D D 0 0.0 Mining D D 0 0.0 D D D D Construction 34 4.4 -34 -4.4 6 0.8 13 1.7 Manufacturing 15 2.9 -4 -0.8 10 1.9 D D Trans,Comm.Utilities 13 3.1 D D D D 6 1.4 Wholesale Trade 11 2.3 -5 -1.0 D D 0 0.0 Retail Trade 46 2.0 -27 -1.2 6 0.3 D D Finance, Ins.. Real Estate 21 3.0 -9 3 D D C • Services 56 1.9 -53 -1.8 27 0.9 18 0.6 Public Administration 0 0.0 D D 7 2.7 D D TOTAL 3rd Qtr., 1994 199 2.3 -145 -1.7 64 0.7 46 0.5 TOTAL 2nd Qtr., 1994 161 1.9 -126 -1.5 58 0.7 45 0.5 TOTAL 3rd Qtr., 1993 200 2.4 -103 -1.2 64 0.8 74 0.9 Number of Jobs Births Dissolutions Expansions Contractions Industry No. Rate(°/,) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture D D D D D D 0 0.0 Mining D D 0 0.0 _D D D D Construction 43 1.0 -13 -0.3 101 2.4 -348 -8.2 Manutacturinc 31 1 0. 5» D Trans.Comm.Utilities 13 0.2 D D D D .126 -2.1 Wholesale Trade 17 0.4 -22 -0.5 D D 0 0.0 Retail Trade 236 0.9 -141 -0.6 75 0.3 D D Finance, Ins., Real Estate 40 1.0 -3 -0.1 D D D D Services 160 0.4 -54 -0.1 492 1.1 -345 -0.8 Public Administration 0 0.0 D D 109 1.7 D D TOTAL 3rd Qtr., 1994 561 0.5 -264 -0.2 1,062 0.9 -987 -0.9 TOTAL 2nd Qtr.. 1994 1.121 1.0 -342 -0.3 1.084 1.0 -862 -0.8 TOTAI 3rd Qtr., 1993 882 0.8 -219 .0.2 1,408 1.3 -1,640 -1.5 D = Suppressed to avoid disclosure of individual companc data. • Northeast Region Counties: Aitkin. Cariron. Cook Itasca. Koachichtng. Lake. and Sr. Louis. Note: See notes on Page 13 of Reporr for Terms. Definitions and Sources. • Southwest Region Cut Job Loss from Business Closings and Contractions There were more small business start-ups in retail trade and service industries this quarter, which raised the total number of new businesses but not the total number of new jobs. The number of business closings and major contractions declined From last quarter. cutting job losses by 38 percent. Manufacturers of computers. chemicals and plastic products accounted for Four of every Five expansion jobs in manufacturing. Expansion jobs increased 78 percent in the service industry. Southwest primarily in health services, education and local government. Some local government agencies Region significantly increased hiring this quarter, presumably to repair flood damage to public parks and other facilities. 3rd Quarter, 1994 Number of Business Establishments Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate %) No. Rate(%) Agriculture D D -6 -1.9 a 1.3 D D Mining 0 0.0 0 0.0 0 0.0 0 0.0 Construction D 0 -15 -1.7 5 0.6 11 1.2 Manufacturing 8 1.17 0 D 7 1.5 4 0.9 Trans,Comm,Utilities 10 1.8 -10 •1.8 D D D D Wholesale Trade 12 1.7 -11 -1.6 7 1.0 0 0.0 Retail Trade 29 1.5 -41 -2.1 D D 4 0.2 Finance, Ins., Real Estate 10 1.2 D D 0 D D D Services 54 2.4 -39 -1.7 17 0.7 8 0.4 • Public Administration D 0 0 0.0 18 4.8 0 0.0 TOTAL 3rd Qtr., 1994 164 2.0 -128 -1.5 61 0.7 34 0.4 TOTAL O L 2nd Qtr., 1994 138 1.6 •139 -1.7 56 0.7 44 0.5 TOTAL 3rd Qtr., 1993 1'S _. -100 ?2 59 0.7 33 3.E Number of Jobs Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture D D -14 -0.5 93 3.3 D D Mining 0 0.0 0 0.0 0 0.0 '0' 0.0 Construction D D -3 -0.1 80 1.7 -181 -3.8 Manufacturing 43 0.2 D D 260 1.0 -87t� -0.3 Trans.Comm.Utilities 14 0.4 -10 -0.3 D D 0 D Wholesale Trace 8 ). , Retail Trade 160 0.8 -187 -0.9 D D -106 -0.5 Finance, Ins., Real Estate 8 0.2 D D D 0 D D Services 68 0.2 -80 -0.2 456 1.3 •89 -0.3 Public Administration D D 0 0.0 324 6.4 0 0.0 TOTAL 3rd Qtr., 1984 459 0.4 -302 -0.3 1,307 1.2 •564 -0.5 TOTAL 2nd Qtr., 1994 453 0.4 -560 -0.5 911 0.9 -828 -0.8 TOTAL 3rd Qtr., 1993 331 0.3 -240 -0.2 1.154 1.1 -813 -0.8 D = Suppressed to avoid disclosure of individual companv data. Southwest Region Counties: Big Stone. Chippewa. Cottonwood Jackson, Kandivohi. Lac Qui Parte. Lincoln. 1-von. McLeod, Meeker. Murray. ,Nobles. Pinestone. Redwood. Renville. Rock. Swift and Yellow:Medicine. • Vote: See notes on Page 13 of Report jor Terms. Definitions and Sources. • 9 �n Brisk Business Expansion Continued from the Previous Quarter 1 Brisk business expansion created 67 percent more jobs than the previous quarter. while • business contraction held steady. Services. manufacturing and retail trade were the large sources of expansion jobs. The number of start-up businesses and new jobs in this region did not change significantly from the previous quarter. Fewer business closings cut job losses by more than half. particularly in retail trade and service industries. Sixty percent of expansion jobs in manufacturing were in fabricated metals. industrial Central machinery. electrical and electronic equipments. and transportation equipment. Resource-based Region manufacturers such as food products, wood products. and concrete products contributed the remaining 40 percent expansion jobs in manufacturing. In the services industry, educational 3rd Quarter, 1994 services. amusement and recreation. and business services were major sources of expansion jobs. Number of Business Establishments Births Dissolutions Expansions Contractions Industry' No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture D D D D 4 1.2 D D Mining 0 0.0 0 0.0 0 0.0 D D Construction D D -35 -2.0 7 0.4 10 0.6 Manufacturing 17 1.7 D D 28 2.8 8 0.8 Trans,Comm,Utilities 23 3.2 -19 -2.7 4 0.6 5 0.7 Wholesale Trade 18 2.3 -14 -1.8 D D D D Retail Trade 66 1° 62 1.8 18 0.5 0.1 • Finance, Ins., Real Estate 24 2.2 -10 -0- D G u D Services 90 2.3 58 -1.5 30 0.8 28 0.7 Public Administration D D 0 0.0 14 3.2 0 0.0 TOTAL 3rd Qtr., 1994 300 2.2 -203 -1.5 110 0.8 65 0.5 • TOTAL 2nd Qtr., 1994 296 2.2 -249 -1.9 74 0.6 62 0.5 TOTAL 3rd Qtr., 1993 327 2.5 -147 -1.1 105 0.8 96 0.7 Number of Jobs Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture D D D D 36 1.5 D D Mining 0 0.0 0 0.0 0 0.0 D D Construction D D -61 -0.7 66 0.8 -172 -2.0 Manufacturing 30 552 7� C.5 Trans,Comm,Utilities 29 0.4 25 -0.3 54 0.7 -106 -1.3 Wholesale Trade 82 1.1 -5 -0.1 D D D D Retail Trade 569 1.3 -131 -0.3 427 1.0 -46 -0.1 Finance, Ins., Real Estate 32 0.5 -10 -0.2 D D D D Services 165 0.3 .74 -0.1 714 1.1 -461 -0.7 Public Administration D D 0 0.0 344 5.1 0 0.0 TOTAL 3rd Qtr., 1994 1,000 0.6 -310 -0.2 2.251 1.2 -1.157 -0.6 TOTAL 2nd Qtr., 1994 1,001 0.6 -6777 -0.4 1,349 0.8 -1.118 -0.6 TOTAL 3rd Qtr., 1993 1.078 0.7 -362 -0.2 1,891 1.1 -1.754 -1.1 D = Suppressed to avoid disclosure of ntdivtduai compati data. Central Region Counties: Benton. Cass. Cnisago. Crow Wing, Isann. R"anabec. Mille Lacs, Morrison. Pine. Sherburne. Stearns. Todd. Wadena, and Wright. Note: .Sec notes on Page 13 of Report for Terms. Definitions and Sources. 10 Food Manufacturing Boosted by Good Farming Season -� Compared to the cold and wet 1993 crop season. food weather in 1994 boosted employment in the large food manufacturing industry. About 69 percent of expansion jobs in manufacturing were created in food processing and vegetable canning. • New jobs from business start-ups increased 18 percent from the previous quarter, while job loss from business closings declined by 45 percent. Major expansions created 31 percent more jobs this quarter, while 66 percent fewer jobs were lost through contractions. Manufacturing was the largest source of expansion jobs (45 percent), followed by services (26 percent) and Southeast local government (16 percent). In the service industry, health services, education and business i Region services were large sources of expansion jobs. Local governments hired numerous workers to complete repair of flood-damaged facilities. 3rd Quarter, 1994 Number of Business Establishments Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%a) No. Rate(%) No. Rate(%) Agriculture 9 1.9 -13 -2.8 D D D 0 Mining 0 0.0 0 0.0 0 0.0 D D Construction 41 2.3 -32 -1.8 10 0.6 10 0.6 Manufacturing 19 1.8 -9 -0.8 31 2.9 9 0.8 Trans,Comm,Utilities 26 2.6 -13 -1.3 4 0.4 1 0.4 Wholesale Trade 17 1.3 -20 -1.6 9 0.7 D D Retail Trade 59 1.4 -69 -1.7 D D 8 0.2 Finance, Ins., Real Estate 27 1.8 .12 -0.8 0 0.0 4 0.3 Services 138 2.8 -62 -1.7 44 0.9 27 0.6 • Public Administration 0 0.0 0 0.0 24 4.6 D D TOTAL 3rd Qtr., 1994 336 2.0 -250 -1.5 132 0.8 66 0.4 • TOTAL 2nd Qtr., 1994 357 2.1 -299 -1.8 118 0.7 89 0.5 TOTAL 3rd Qtr.. 1993 414 2.5 -221 -11.4 120 0.7 117 0.7 Number of Jobs Births Dissolutions Expansions Contractions Industry No. Rata(%) No. Rate{%) No. Rate(%) No. Rate(%) Agriculture 26 0.8 .6 -0.2 D D D D Mining 0 0.0 0 0.0 0 0.0 •0` D Construction 74 0.8 -19 -0.2 118 1.2 -146,,. -1.5 Manufacturing 75 0.1 -81 -0.1 1,482 2.2 -210 -0.4 Trans.Corn m,Utilities 33 0.8 -10 -0.1 121 1.1 -48 -0.4 Wholesale Trace -'.4 0.3 -57 -0.4 109 0.8 D D Retail Trade 564 1.0 -206 -0.4 D D -127 -0.2 Finance, Ins., Real Estate 40 0.4 -2 -0.0 0 0.0 -52 -0.5 Services 389 0.4 -66 -0.1 866 0.9 -401 -0.4 Public Administration 0 0.0 0 0.0 525 5.6 D 0 TOTAL 3rd Qtr.. 1994 1,295 0.5 -447 -0.2 3.324 1.2 -1,110 -0.4 TOTAL 2nd Qtr.. 1994 1.098 0.4 -806 -0.3 2.537 0.9 -2.069 -0.8 TOTAL 3rd Qtr.. 1993 1.700 0.6 -548 -0.2 3.077 1.2 -3.900 -1.5 D = Suppressed to avoid disclosure of individual company data. Southeast Re ton Counties: Are Earth. Brown. Dod e. Fartboulr. Fillmore. Freeborn. Gon r. ihue. Houston. Le Sueur. Marvin. Mower Nicnller. Olorsted. Rice. Sibley. Steele. Wobrsha. Waseca. Watonwan. mud Winona. Vote: See notes on Pale /3 nj Report jnr Tenns. Definitions and Sources. • 11 Business Start-ups Rebounded With an improved economy, the number of business start-ups and new jobs rebounded from the previous quarter. Business closings and job losses declined in various industries. Due in part to keen competition. there were fewer retail trade expansions in the region. Prior . downsizing had also already reduced the retail business workforce. Many industries including temporary help agencies. health services. educational. social and professional services did increase expansion hiring. Twin Cities Manufacturing and the related wholesale trade sector continued to expand at last quarter's Area pace. In contrast. rising interest rates depressed activity in the finance, insurance and real estate industry. Several construction companies and defense-related businesses reduced their 3rd Quarter, 1994 workforce during this quarter. Number of Business Establishments Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture 35 3.2 -28 -2.6 D D 7 0.6 Mining 0 0.0 0 0.0 0 0.0 0 0.0 Construction 181 3.0 -123 -2.1 D D 60 1.0 Manufacturing 110 2.2 -58 -1.2 80 1.6 45 0.9 Trans,Comm.Utilities 64 2.6 -39 -1.6 26 1.0 25 1.0 Wholesale Trade 180 2.4 -120 -1.6 43 0.6 24 0.3 Retail Trade 302 2.3 -320 -2.4 72 0.5 54 0.4 Finance. Ins., Real Estate 202 2' 137 1.° 18 C.2 40 0.5 Services 921 3.4 -538 -2.0 211 0.8 164 0.6 Public Administration 4 0.8 0 0.0 15 3.1 0 0.0 TOTAL 3rd Qtr., 1994 1,999 2.9 -1,363 -2.0 556 0.8 419 0.6 TOTAL 2nd Qtr., 1994 1,631 2.3 -1.584 -2.3 589 0.8 452 0.6 TOTAL 3rd Qtr., 1993 2.137 3.2 -975 -1.5 705 1.1 578 0.9 Number of Jobs Births Dissolutions Expansions Contractions Industry No. Rate(%) No. Rate(%) No. Rate(%) No. Rate(%) Agriculture 63 0.8 -19 -0.2 D D -140 -1.7 Mining 0 0.0 0 0.0 0 0.0 0 0.0 Construction 320 0.7 -72 -0.2 D D -1.320 -9.8` Manufactunng -166 Trans,Comm,Utilities 155 0.2 -47 -0.1 908 1.2 -717 -1.0 Wholesale Trade 461 0.5 -173 -0.2- 897 0.9 -526 -0.6 Retail Trade 2,797 1.2 -1,053 -0.4 1,715 0.7 -1,057 -0.4 Finance, Ins., Real Estate 639 0.6 -127 -0.1 314 0.3 -1.045 -1.0 Services 1,984 0.4 -1,129 -0.3 6.378 1.4 -3,480 -0.8 Public Administration 1 0.0 0 0.0 447 1.3 0 0.0 TOTAL 3rd Qtr., 1994 6,621 0.5 -2.786 -0.2 14,497 1.1 -9,925 -0.8 TOTAL 2nd Qtr., 1994 4.924 GA -3,690 -0.3 14,062 1.1 -10.622 -0.8 TOTAL 3rd Qtr., 1993 5.962 0.5 -2,734 -0.2 19,11 1.6 -16.388 -1.3 D = Suppressed to avoid disciosure of indiviauai cotnpanv data_ . Twin Cities Renton Counties: Anoka. Carver. Dakota. Henneptn. Ramsey. Scott and Washington. Note: See notes on Page 13 of Repon for Terms. Definitions and Sources. I Terms and Definitions The 6flowt-mg are definitions of some)inrdainerntal terms used in this report Business Establishment: As defined by the U.S. Department ol, Commerce. u separate plant location or workste or a jc•ompa riv or enterprise. Large companies may have several establishments in various locations around Minnesota. Dissolution: The death of a Minnesota business establishment is assumed to have tx•curred wiren that establishment both did not report to rite :Minnesota Unemplovinent Insurance Program /U-1) for nvo consecutive quarters. and when the establishment cannot be found elsewhere in the U-1 records. Businesses which were sold or merged with other establishments, wirerr such sale or merger resulied.in a name and identification number chaunge. tnav occasionally be erroneously reported as dissolutions. Apparent dissolutions of manutactunng companies are further verified by business termination data front the Department of Economic Secunry(DES).and dirouRhMinv-up sunevs adminisrered by DTED. Definitions Birth: The s•tarr-up of a new companv is determined to have occurred when rite establishment first reports to the U-1 Program. Sales or mergers oj*companies may occasionally be erroneously reported as births. when such activiry resulted in and Sources it companv name change. For manufacturing companies. DES•s records and various indusiry sources are used to identify such business sales and mergers• which are then excluded from this category. 3rd Quarter. 1994 Expansion: The DTED Business Tracking Svsrem reports only significant business expansions. A significant expansion occurs when a business establishment with over 19 employees increases emplovinent by 25 percent or more over two i quarters: or when anv establishment adds 50 or more emplovees over two quarters. For seasonal businesses such as outdoor recreation and tourism,job growth is calculated from the.same quarter of the previous Year. Contraction: The DTED Business Tracking System reports only significant business contractions. A significant contraction occurs when a business establishment with over 19 employees decreases employment by 25 percent or more over two quarters: or when anv tfstablishnrent terminates 50 or more emplovees over nvo quarters. For seasonal businesses. job decline is calculated from the same quarter oj'the previous year. Sources For This Report The DTED Business Tracking System is based on information and data files provided by the Research Division and Tax Division of the Minnesota Department of Economic Security, including quarrenv employer reports to the Unempiovment insurance Program (ES202), St. Paul. Minnesota. The data covers approximatetc 97 percent of all nonagricultural wage and .salary employment in Minnesota. Those excluded from E3202 are the self-employed. railroad workers. most farmers. commission agents, students. religious workers and elected,government officials. • Six months after the close of each quarter. DES provides DTED with raw data on employment and wages by business establishment for char quarter. This report is produced one to two months after DTED receives these data. Hence. the • DTED Quarterly Report is issued approximately 8 months after the close of quarter covered rr i i • 13 CITY OF ARDEN HILLS MEMORANDUM DATE: August 14, 1995 TO: Economic Development Committee FROM: Kevin Ringwald, Community Development Director SUBJECT: Land O' Lakes Land O' Lakes is celebrating its 75th Anniversary this year. Land O' Lakes is a valued corporate citizen in our community employing approximately 750 persons. The Economic Development Committee may wish to discuss sending some form of congratulatory note to Land O' Lakes in appreciation of this event. KR\jt • • 0 • CITY OF ARDEN HILLS MEMORANDUM DATE: August 14, 1995 TO: Economic Development Committee FROM: Kevin Ringwald, Community Development Director SUBJECT: Gateway Business District Update The City for a considerable period of time attempted to negotiate a development agreement with Everest for the development of the Gateway Business District. Everest and the City were unable to successfully complete those negotiations prior to the July 15, 1995 deadline. Subsequently, the City Council at its worksession on July 20, 1995 achieved consensus to discontinue negotiations with Everest. As I have previously stated, if an agreement cannot be reached with Everest, then staff would recommend an evaluation of the remaining options. Staff views this as a two step process. Step one would be the evaluation if the vision of the Gateway Business District. Step two would be analysis of the development options; such as, the preparation of a Request For Proposals (RFP), City Development of the GBD, allowing market forces guided by the zoning district standards to develop the site, or a combination of the above. • The Gateway Business District has its only access provided by Highway 96, via Round Lake Road West. The staff has had ongoing discussions with the Minnesota Department of Transportation (MN DOT) and Ramsey County as it pertains to future improvements to the Interstate 35W/Highway 96 Interchange and Highway 96. The staff has been attempting to maximize the City's access options in these improvement plans, so as to maximize its development options in the Gateway Business District. The staff will be discussing this item in greater detail at the meeting, as well as the impact of this development on the Economic Development Committee work program. KR\jt i II i II