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HomeMy WebLinkAbout12-21-05 'Mt -ARQEN HILLS ECONOMIC DEVELOPMENT COMMISSION WEDNESDAY, DECEMBER 21, 2005 7:30 a.m. I. CALL MEETING TO ORDER 11. ROLL CALL IIL APPROVAL OF MINUTES IV. CITY UPDATES—Mayor Aplikowski and CD Director Karen Barton • A. City Council Update B. Planner recruitment update C. TCAAP Update V. MARKETING DISCUSSION—CD Director Karen Barton A. Review of Draft Economic Development Plan RFP VI. BUSINESS RETENTION AND OUTREACH— Chair Kunkel and Mayor Aplikowski A. Proposal for sub-committee on Business Outreach and Retention IV. ADJOURN AND SET NEXT MEETING DATE City of Arden Hills 1245 West Highway 96•Arden Hills Minnesota 55112 Phone 651.634.5120•Fax 651.634.5137 www.ci.arden-hills.mn.us `l`7�Bwj0✓ � S ay- C, {tffP E� ii • ��� �✓-tel --.ti° � .' �' - cP g�YVV 0(0 ff ��"nw � 1 o-5 1 r id 1 c M 1 7 • � i Vy r� i i �f � : W cam•-�--d�- �!Q.A- I� c�.�: �t�' CJ • �� d C:� — tillf� � � 9{ / . � � i�/ !� . §{ � � � §I . ��! � «! . . .. . . � � � ii\ � . § \ . . . ° � j{ � � )> »< � � /( . §! � . . - � i / . . � }! � � ){ . � � �{ §} � . . . � . (\ � �/ � � §\ . � / � � )\ � . . . �|� . . � { . . � . . . � . . . . 2( . . �!! . � � � . \� � . . . . 8 . . � . . � [§ � . � � � � � � | . . . � � � � � � � � . ��� � �� . } \ . � � � � � � \ � . a. : . \� : � . . � < . . � ����� . � \ . � . � � � �� � � � . . � � � �� ���� � � � ��� � � \ � � � � � � . . `�����/� � � . . . ������ , . . � � \� . . . � � 7 ���� � � � . � . 'It -A ENN HILLS CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT COMMISSION November 16, 2005 7:30 A.M. CITY HALL COUNCIL CHAMBERS-- 1245 WEST HIGHWAY 96 Mayor Aplikowski called the meeting to order at 7:30 a.m. Those in attendance: Ray McGraw, Chris Ashbach, Dale Beane, Ed Werner, Rob Davidson, Jim Paulette, and Mayor Aplikowski. Staff. Community Development Director Karen Barton and City Administrator Michele Wolfe Minutes from the September meeting will be presented for approval at the next meeting. Mayor Aplikowski introduced Karen Barton, the City's new Community Development Director. Wolfe gave an update on the City Planner and Engineer recruitments. It is expected that we will have the Planner on board in the next several weeks, and the Engineer shortly thereafter. Wolfe gave a brief update on TCAAP, indicating that the appraisal was received late Monday, and the Council has reviewed the appraisal in a closed session Monday evening. There will be another closed session strategy meeting on the 21St, and Response Action Agreement • negotiations on the 28th, followed by sale price negotiations on the 29tH Mayor Aplikowski stated much of the negotiations would be focused on the wildlife corridor and the Primer Tracer area. Both Wolfe and the Mayor indicated they are optimistic about the upcoming negotiations. Although Wolfe is anticipating a continued"two-steps forward, one and a half steps backward"progression throughout the remainder of the process. Mayor Aplikowski suggested sending an update letter to the Guard as a"neighborly" gesture. Marketing Discussion Wolfe gave a brief background of the economic development plan and hiring of a facilitator to develop. A draft RFP was distributed for review, along with a draft resolution. Wolfe indicated that the RFP incorporated portions of the Milaca economic development plan, which the EDC had previously stated a preference towards. Wolfe had contacted the consultant who had prepared the Milaca plan to inquire about cost. The consultant indicated it would cost the City of Arden Hills roughly$5,000 to $7,500 to develop a similar plan. Jim Paulette indicated that by developing a business plan, it would provide the City with a"map" to get our economic development efforts started and focused. . Rob Davidson supported the idea recognizing that we need a city-wide economic development plan; not just a plan for TCAAP. There are other areas in the City, specifically the area on Lexington,between 694/10 and County Road E, which needs attention. Wolfe stressed the need for action today in order to request funds at the budget meeting on December 5. Barton read the resolution. Rob suggested we specify a specific dollar amount in the resolution. General consensus was that it should be $10,000. Wolfe also suggested changing verbiage in the resolution from"would"to "may" include hiring a consultant. Ray McGraw made a motion to accept the resolution with the above changes. Chris Ashbach seconded. Motion carried unanimously. Mayor Aplikowski suggested tabling the business outreach and retention discussion until next meeting, as well as suggesting discussing appointing a vice-chair to the EDC at the next meeting. The next meeting is scheduled for December 21 at 7:30 am at the City Hall. Having no other business, the meeting was adjourned. i ARDEN HILLS ECONOMIC DEVELOPMENT COMMISSION MEETING MINUTES OCTOBER 26, 2005 Present: Mayor Beverly Aplikowski, Chair Bruce Kunkel,Nancy Kneeland, Rob Davidson, Chris Ashbach, Ray McGraw, Jim Paulet Absent: Dale Beane, Ed Werner Also Present: City Administrator Michelle Wolfe Chair Kunkel called the meeting to order at 7:33 a.m. There was discussion about meeting minutes from August. They were reviewed (read aloud) and approved(motion to approve McGraw, second Ashbach. Mayor Aplikowski and Administrator Wolfe provided City Updates. Wolfe provided an update regarding the recruitment status of various City positions. The Mayor updated the group regarding the 135W Corridor Coalition, eminent domain discussions happening at the League of Minnesota Cities, and the storm clean-up efforts. Wolfe provided an update regarding TCAAP. She indicated that the appraisal is underway, that the Army appears to be working on the FOSET document, and there will be a meeting regarding the Response Action Agreement in late November. The next discussion focused on marketing. Wolfe provided an overview of sample marketing materials from the City of Cottage Grove. Mayor Aplikowski shared a brochure from the City of Golden Valley. The also noted a survey that was done by the city of Arden Hills many years ago. Kneeland suggested that we should let residents know what businesses are here. Ashbach suggested something on-line,perhaps partnering with the Chamber on the effort. Davidson asked, what are we marketing? Are we marketing TCAAP, development in general, or something else? He also noted potential for redevelopment, such as the Lexington/694 area or County Road E. Kunkel stated that a SWOT analysis could help us identify answers to those questions. Davidson agreed, stating that once you have the SWOT analysis, and understand its results, then you can start to figure out what you want as a community. Mayor Aplikowski noted that there are 25,000 workers in Arden Hills, but only 9652 residents. Ashbach asked, who decides the ultimate vision for the City? Davidson suggested that the market helps define it, but the Council sets the vision. Mayor Aplikowski added that she wants to bring all the committees together for a discussion about vision. Kunkel said he believes SWOT analysis is the first step. He asked who else besides the EDC should be part of the SWOT analysis process. Mayor Aplikowski stated she thought all the committees should be included. She further noted that on November 9, an all-committee meeting will be held. She also suggested we could perhaps branch into the business community. She stated perhaps we should start internally, taking a look at ourself as a city. It was noted that it would be best to have a facilitator for the process. Mayor Aplikowski noted that in the past, there had been discussion about a revolving loan fund. That might be a topic for future discussion. Kunkel asked the group if they think a SWOT analysis seems like a good idea, and if so,what should the next step be? Kneeland stated that she thinks it is a good idea, and that we should take a regional approach to the analysis. Wolfe suggested that it might be helpful to the process to be informed by neighboring communities about what is happening in their communities. McGraw stated that perhaps we should talk to DSU for input. He suggested that they probably already looked at the surrounding communities as they worked on planning efforts for TCAAP. Mayor Aplikowski suggested we could perhaps get all the communities together on one night. Ashbach said he thought it would be good information, but we need to first figure out what we need and want as a City. • Paulet referenced the sample economic development plans that were shared with the commission members. He stated that he likes the Milaca model. He suggested that we could benefit from a process similar to the one they used. He further suggested that we consider hiring a consultant to help us better understand who we are and where we want to go. He made a motion to hire a facilitator to help us prepare an economic development plan, which would include a SWOT analysis. Kelly seconded the motion. There was discussion about the need for funding such a project. Hiring a facilitator could cost several thousand dollars. Kneeland suggested an amendment to the earlier motion, that the City appoint a facilitator, but that it could be a volunteer, staff member, or hired consultant, which would be for staff and Ctiy Coucnil to decide. Paulet agreed to amend his motion. The motion carried unanimously. The next meeting date was set for November 16. The December meeting will be December 21. All meetings will begin at 7:30 a.m. committees, and task forces, and City staff. In addition the consultant will gather other data and information relevant to production of said document. The final plan should contain sections including but not limit=d tq: i.t - k • Community Assessment and Local Leadership �a- i�a �"�S�,�,tij 19 +►. o A self-assessment of the community's characteristics and the commitment of local leadership (probably using a survey tool of some kind) — tf1C� h71-$�r\j�Y o Perception of local issues ' o Strengths, weaknesses, opportunities and threats (and related data) • Competition Analysis o Assessment of other communities vying for the same resources o Critical market information o Competitor's Matrix • Economic Development Organization Assessment o Ability of City organizations to take on recommendations as outlined in the plan • Marketing Plan o Key message(s) o Marketing Tools o Marketing Strategy • ■ General City ■ TCAAP • Goals and Strategies We are purposely leaving detail out of these four phases of this RFP in order to encourage consultant creativity in gathering information and identifying solutions to these needs. We encourage detailed methodology for each step and a best estimate of the time consumed to provide each phase. Proposal Format and Content Qualifying proposals must address all of the following points, in the following order: 1) Cover/Transmittal Letter. This letter must be signed by a member of the firm with the authority to commit to a contract on behalf of the firm offering the proposal. Please acknowledge the receipt of any addenda received, if applicable. 2) Name, address and phone number of the firm proposed for this contract. Page 3 of 10 EN HILLS For an Economic Development Strategy To be owned and implemented by the City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112 PROPOSALS MUST BE RETURNED BY: 12:00 PM FRIDAY, XXXXXXXX, XX, 2006 • l i Request for Proposals Economic Development Strategy Introduction The City of Arden Hills is seeking a qualified consultant to accomplish the development a five year economic development strategy for our community. Historically, the City has not benefited from a coordinated economic development strategy. It is our intention to take our economic development efforts to the "next level" by having a strategy completed for our community. Background The City of Arden Hills lies approximately 8 miles north of the downtown areas of St. Paul and Minneapolis, Minnesota. It is situated in Ramsey County and covers 9.4 square miles with an estimated population of 9,692 persons. The City serves as home to many large corporations, numerous small to medium size businesses, and two (2) private colleges. Detailed information about the community can be obtained from our web page: http://www.ci.arden-hills.mn.us Budget The City has allocated funds in the amount of$XX,000 for this effort. It is our intention to select the consultant that will optimize the value of this expenditure for our community. The City of Arden Hills will not exceed this budget so it is important that all consultants understand that cost overruns not approved in writing by the project manager will be the responsibility of the service provider. Scope of Work The exact scope of services required by the City of Arden Hills will be finalized into a written document to be approved by the consultant and the City prior to the commencement of work. In exposing its budget for this effort above the City accepts that all proposers will come in close to the budgeted amount. Our choice of the preferred vendor will be made, in part, on the one who provides the City with the greatest value for that expenditure. Having said that however, there are some essential components the City is seeking in their plan which includes: The final desired product is a comprehensive Economic Development Plan. It is expected that the consultant will solicit input from a variety of . stakeholders including the Mayor and City Council, City commissions, Page 2 of 10 'j • committees, and task forces, and City staff. In addition the consultant will gather other data and information relevant to production of said document. The final plan should contain sections including but not limited to: • Community Assessment and Local Leadership o A self-assessment of the community's characteristics and the commitment of local leadership (probably using a survey tool of some kind) o Perception of local issues o Strengths, weaknesses, opportunities and threats (and related data) • Competition Analysis o Assessment of other communities vying for the same resources o Critical market information o Competitor's Matrix • Economic Development Organization Assessment o Ability of City organizations to take on recommendations as outlined in the plan • Marketing Plan o Key message(s) o Marketing Tools o Marketing Strategy General City ■ TCAAP • Goals and Strategies We are purposely leaving detail out of these four phases of this RFP in order to encourage consultant creativity in gathering information and identifying solutions to these needs. We encourage detailed methodology for each step and a best estimate of the time consumed to provide each phase. Proposal Format and Content Qualifying proposals must address all of the following points, in the following order: 1) Cover/Transmittal Letter. This letter must be signed by a member of the firm with the authority to commit to a contract on behalf of the firm offering the proposal. Please acknowledge the receipt of any addenda received, if applicable. 2) Name, address and phone number of the firm proposed for this contract. Page 3 of 10 3) The name and title of the person authorized to execute the prime . contract on behalf of the firm. 4) Scope of Work. Describe the work plan that you intend to use to complete the tasks listed in the Scope of Work. Note any changes or additions to the work descriptions above that may be overlooked or which help clarify the work tasks. 5) Responsible Personnel. List the principal-in-charge, and others who will be directly involved with the projects. Provide a concise statement of qualifications and experience of each person who may be committed to the projects. 6) Related Experience. Include: a. All projects in progress or completed in the last five years that are comparable to these projects. b. References with names addresses and phone numbers (at least three are required). G. For the referenced project(s) in 6(b) above indicate your bid amount, the number of change orders, total dollar amount of 49 change orders, and the final cost of the project(s). Consultant Fees Provide your cost for the project as a single price "not to exceed." Provide a listing of consultant fees. Break down the fee into labor, subcontractor fees, if any, and expenses. Fees shall include all tax, mark- ups, overhead, and profit. The cost estimate should be broken out into the time estimates and costs for each task identified in the scope of work. Proposal Submittals Pages in the proposal shall be typed and single sided with the maximum number of pages of proposal information (excepting cover sheet, index sheet, blank pages, and table of contents) to be limited to twenty pages. Only the specifically requested information shall be submitted. If a consultant recognizes a more efficient method of accomplishing a specific task or item, the consultant's fees shall reflect the City's requested work and the cost increase/savings for the more efficient method shall be noted separately. . Page 4 of 10 The consultant shall submit an original unbound and bound copies of the proposal in a sealed envelope or box clearly marked with the consultant's name and labeled: Proposal for an Economic Development Strategy The proposals shall be delivered to the office of Community Development at the following address not later than 12:00 pm on f 1 00 WOUM G a 2006. Karen Barton Community Development Director City of Arden Hills 1245 West Highway 96 Arden Hills, MN 55112 T: 651.634.5126 F: 651.634.5137 E: karen.barton(o)-ci.arden-hills.mn.us Late proposals will not be accepted. Potential applicants are requested to make no personal contact with any member of City of Arden Hills Council during the RFP process. Any questions are to be directed to Karen Barton at the point of contact above. Evaluation and Selection The City of Arden Hills will review the proposals and intends to select three (3)finalists for further consideration. Arden Hills may or may not require the finalists to participate in an oral interview prior to final selection. This determination will be made after the review of the proposals submitted by the consultants. After a consulting team is selected, Arden Hills expects to negotiate the details of work to be performed based upon the proposal and Arden Hill's needs and appropriate pricing of selected tasks. If negotiations fail for any reason, including price, Arden Hills may choose to negotiate with others to obtain an appropriate contract for needed services. Firms will be evaluated on the following criteria: 1. Quality and appropriateness of proposed project team and experience and the ability of the team to deliver a successful project based on direct prior experience with redevelopment including mixed-use housing, commercial, industrial, and residential uses. Page 5 of 10 R 2. Demonstrated project understanding and project approach. 3. The experience of the prime firm, length of time in business and other matters relating to relevant experience. 4. Appropriateness and experience of project manager and demonstrated ability to successfully manage and deliver a successful project. 5. Experience of the individuals assigned to this account. 6. Creativity in meeting the goals of each phase. 7. References either submitted with the proposal or known to Arden Hills. 8. Overall quality of proposal, responsiveness and compliance with RFP requirements. 9. Innovative offerings and services and other related matters. 10.Location and availability of personnel involved in the project. 11.Anticipated delivery time line. 12.Other information as appropriate. In addition to the specific factors addressed in the Request for Proposal, the interviews are intended to provide the City with information regarding other factors about the firm important to their decision. These factors include, but are not limited to, its ability to communicate effectively with the City, staff, and others who will be involved in the project; its ability to work creatively and cooperatively with the City, staff, and others who will be involved in the project; and its proposed methods for furnishing the required services to ensure that the project is completed on time, on or under budget, and to the City of Arden Hill's satisfaction. Arden Hills shall award a contract to the firm which presents the proposal that, in the judgment of Arden Hills, best accomplishes the desired result. Arden Hills is not obligated to accept any of the proposals submitted or to enter into an agreement with any of the proposers. Schedule of Activities The following schedule has been established for the selection of a consultant: Page 6 of 10 RM"° k Contact Person Consultants are encouraged to attend the pre-bid conference call to have any questions answered before preparing a proposal for consideration. The contact information for the pre-bid conference call will be distributed to those who submit a Notice's of Intent to Bid (see final page of this RFP) that are received by Arden Hills on or before XXXXXXX XX, 2006. Only those firms submitting the NOIB will be notified. It is anticipated that the vast majority of consultant questions will be answered at this meeting however additional questions can be submitted via email at any time to Karen Barton up to Friday, XXXXXXX XX, 2006. These questions will be answered and distributed anonymously to all bidders attending the pre-bid conference call on XXXXXXX XX, 2006. Important Matters City's Rights and Options This RFP constitutes only an invitation to make a proposal to the City of Arden Hills. The City reserves, holds and may, in its sole discretion, exercise the following rights and options with respect to this RFP: 1) To discontinue the RFP process at any time. 2) To reject any or all proposals. 3) To interview any or all Proposers. 4)To conduct investigations with respect to the qualifications of each Proposer. 5) To supplement, amend, or otherwise modify this RFP. 6)To issue additional subsequent solicitations for proposals. 7) To negotiate with the Proposers for amendments or other modifications to their proposals. 8) to select and enter into contract(s) with those Proposers whose proposal best satisfies the interests of the City and are most responsive to this RFP, and not necessarily on the basis of price alone or any other single factor. Page 7 of 10 9) to enter into agreements for only portions (or not to enter into agreements for any) of the services contemplated by this RFP. 10)the Proposer may not rely upon oral responses or representations made by the City; the Proposer may rely upon only written responses or representations made by the County and provided to all recipients of the RFP. Any modification to the RFP shall be made by the City in writing and delivered to each recipient of the RFP. 11) the City has diligently prepared this RFP and has presented all known, pertinent data as accurately and completely as possible. The City does not warrant or guarantee the completeness or accuracy of this information, nor will the discovery of an error or omission therein give rise to any obligation by the City to later alter the contract. 12) that any and all counter-proposals, negotiations or any communications received by a Proposer, its officers, employees or agents from the City, its elected officials, officers, employees or agents, shall not be binding against the City of Arden Hills, its elected officials, officers, employees or agents unless and until a formal written agreement for the services sought by this RFP is duly executed by both parties and subject to the necessary approvals. 13) to exercise its discretion and apply its judgment with respect to any aspect of this RFP, the evaluation of proposals, and the negotiation and award of any contract. Confidentialit 1) Confidentiality of RFP and RFP Process: The Proposer should regard the contents of the RFP and the City's process of evaluating outsourcing opportunities as a strictly confidential business matter. The Proposer must recognize and acknowledge that the City expects the Proposer to treat the materials and data provided by the City as confidential. Under applicable laws and regulations, the City may be required publicly to disclose such materials and data; however, in order for the City effectively to monitor and control such disclosures, the Proposer shall not disclose any materials or data provided by the City to any third party other than as required to prepare the Proposer's proposal. In the same interest of mutual respect and confidentiality, the City will not disclose the contents of any proposal during the negotiating process. The winning proposal will be kept in the project file and all other proposals will be destroyed upon announcement of a winning bid. Miscellaneous 1) Reimbursements. There is no expressed or implied obligation for the City of Arden Hills to reimburse responding firms for any expenses incurred in preparing proposals in response to this Request for Proposal, and the City will not reimburse responding firms for these expenses, nor will they pay any subsequent costs associated with the provision of any Page 8 of 10 i additional information or presentation, or to procure a contract for these services. 2) Offerors should be aware that the RFP and the contents of the successful proposal will become a part of any subsequent contractual document that may arise from this RFP. In case of discrepancy between the RFP and the Offeror's proposal, the RFP will rule. 3) The City of Arden Hills will not accept any contract terms that require prepayment for services, supplies or equipment in excess of 15% of the contract award. 4) No oral statement of any person shall modify or otherwise change, or affect the terms, conditions, or specifications stated in the resulting contract. All Change Orders to the contract will be made in writing by the Community Development Director for the City of Arden Hills. 5) Should there be a change in ownership or management, the Contract shall be cancelled unless a mutual agreement is reached with the new owner or manager to continue the contract with its present provisions and prices. This Contract is nontransferable by either party. 6) All invoicing shall be submitted to the City of Arden Hills to the attention of the Director of Community Development. Upon approval by the director, they will be forwarded for payment by the City. If invoices are subject to cash discount, discount period is to be taken from the date of completion of order or date of receipt of invoice, whichever occurs last regardless of whether or not correct discount terms appear on invoice. All invoices are to be paid in full within 30 days after satisfactory delivery of services and billing. 7) Proposers are advised that all contracts are subject to all legal requirements provided in the City Ordinances, State, and Federal Statutes. 8) The City of Arden Hills operates and is funded on a fiscal year basis; accordingly, the City reserves the right to terminate, without liability, any contract for which funding is not available. 9) In the event of a needed change in the published RFP documents, it is understood that all the foregoing terms and conditions and all performance requirements will apply to any published addendum. \\Metro-inet.us\ardenhills\Planning\Community Development\EDC\Economic Development RFP.doc • Page 9 of 10 Notice of Intent to Bid Please fax to 651.634.5137 TO: Karen Barton, Community Development Director FR: Firm: Contact Name: Phone: Email: DATE: (Due by 5:00 p.m. ;.,.. .` , 4 k q9 rc; Please be informed that the above mentioned firm intends to submit a proposal for the Economic Development and wishes to be notified of the pre-bid meeting scheduled fors_._. 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The consulting team recognizes the Industrial Park as the current hub of economic activity for North Branch. ESSBY is the focal point for future business activity and represents a significant development in the community and the region. Due to this conclusion, the majority of the marketing plan will discuss strategies for the ESSBY business park and the largest allocation of financial resources will be spent in this area. North Branch Industrial Park Critical Market Information The expansion of the North Branch Industrial Park (NBIP) is limited due to geographic and zoning constraints. Essentially, the city has an inventory of 16buildable acres in the Park and is focusing future business development in the ESSBY area. The NBIP is geared toward smaller users seeking a site between 1 and 9 acres. Typically, these businesses have fewer employees, have been in business less than five years, and require outside storage. • The site is in a JOBZ zone and has the infrastructure in place. There has been discussion among city, county and state officials to allow re-designation of the JOBZ to the ESSBY area. The opportunity to place a large manufacturing facility in the NBIP has been diminished with the current land supply and configuration. The JOBZ resource would better serve the community in the ESSBY area. Active marketing of the NBIP would diffuse city staff and financial resources. The best strategy is to "be prepared to react." City should maintain a fact sheet on the sites available with in the NBIP, update the MNPRO system, and design a page within the City's web site, all of which can quickly distribute information. ESSBY Development Area Critical Market Information National trends indicate the primary concerns for businesses considering relocation are the availability of a skilled workforce,proximity to educational and training programs, local costs and the availability of utilities. These same items coincided with the EDA evaluation of community assets, with the exception of proximity to educational programs. To establish partnership with higher learning institutions is a key item in the EDA's Work Plan for 2005. • Informal interviews with real estate brokers with interests in Metropolitan Area were conducted. The results of the survey indicated that users contemplating expansion into metro fringe communities prefer spaces averaging 30,000 to 100,000 square feet. The North Branch Marketing Plan Page 1 project team recommends that North Branch concentrate its marketing efforts on attracting mid sized industrial businesses seeking to construct 30,000 to 60,000 square feet. We believe these types of business would allow the City to: / Maximize the ESSBY land resource by working with established and growing companies. ► create a steady stream of work for builders and local construction workers; / allow for consistent utilization of specialized training programs at Pine Technical College resulting in a satellite facility in the city; and ► create a high rate of new business infusion that would enhance the sense of economic health in the community, thereby aiding in attracting additional new business in the future. Industries targeted for attraction would fall into one of the categories below: 1. NAICS codes similar to the existing industrial employment base in Chisago County 2. NAICS codes similar to the industry and occupation of North Branch and Chisago County Residents 3. NAILS codes of growth industries in Minnesota • In addition, the targeted business will reside in Anoka, Ramsey or Washington Counties.. These companies are familiar with the area and receipt a portion of their revenues from local businesses. There may be a direct benefit to having a regional facility to service multiple customers. Marketing Message The materials created and distributed to potential users will focus of four critical areas: • Availability of a skilled Labor Force • Location • Favorable Local Cost: Available land with utilities • JOBZ These four assets were identified by the EDA through planning process. Additionally, available skilled work force, local costs, and availability of utilities are the primary concerns for business relocation according to national trends. JOBZ presents a unique opportunity for North Branch. It is one of the few communities within thirty minutes of the Twin Cities that can offer this incentive to qualified businesses. And the ESSBY location is superior to business park location of neighboring cities. A listing of competitors is attached as Exhibit A. • Building upon North Branch's experience as the first JOBZ zone in the State,provides a significant strategic and competitive advantage. North Branch Marketing Plan Page 2 It is important to define the new neighborhood created. The acronym ESSBY needs to be replaced with the development's permanent name as soon as possible. Marketing Tools The project team proposes using the following mediums for communicating the marketing message to potential users. Depending on the targeted audience, the marketing tools will be used in combination. 1. Power Point Presentation: Develop a portable presentation of 20-30 slides that can be used to provide business location information to prospects at on site visits. The presentation can also be transferred to a CD Rom or e-mailed to potential users. 2. Web Site Update: Develop the economic development component of the City's web site to showcase the ESSBY Development area, available buildings and sites, labor information and other critical business location factors. The web site will have a request for additional information section. This allows the city to further qualify a prospect. 3. E-mail Fact Sheets: Information sheets that can be quickly e-mailed to prospect and provide more detailed information than the Web Site. The pages would be simplistic in design and not incorporate the graphical • content of the Web Site. We are proposing development of the following fact sheets: • North Branch Industrial Park Information: parcel sizes, cost per square foot, zoning, contact information • ESSBY Information • Other available building and sites • Financial Programs • Labor Force • General Community Information: recreation, demographics, housing, etc 4. Press Releases: A cost effective method of highlighting economic successes for North Branch. A well written release will turn into a feature article in the publication. The Minnesota Real estate Journal, City Business and other Twin Cities real estate publication will publish press releases in a designated section. The release help establish an image for North Branch as a progressive community with a high level of economic development activity. 5. Advertising: Promotes business location opportunities in North Branch in the Twin Cities Market. An established advertising campaign elevates awareness in the business community and real estate markets of • the North Branch product. A large audience can be reach at a reasonable price. North Branch Marketing Plan Page 3 �I 6. Direct mail: For a smaller targeted audience a postcard direct mail campaign keeps North Branch front and center. While advertising increases visibility, direct mail creates recognition. Marketing Strategy: Business Attraction The goal is to attract industrial users of 30,000 to 100,000 square feet to locate their operations in the ESSBY Development Area. The marketing activities focus two audiences are targeted. The first is the business community. As previously discussed businesses would fall into specifically identified NAICS categories. Both traditional manufacturing and knowledge industries will be targeted. Mailings will be sent to companies located in metropolitan counties exhibiting high concentration of a specific targeted industry. NAICS Industry Sector Cluster Found 321 Wood Product Manufacturing Manufacturing Chisago Co./MN 323 Printing &Related Manufacturing MN 326 Plastics &Rubber Products Manufacturing Chisago Co./MN • 332 Fabricated Metals Products Manufacturing Chisago Co./MN 3327 Machine Shops &Threaded Manufacturing Chisago County 333 Machinery Manufacturing Manufacturing Chisago County 334 Comp. &Electronic Production Manufacturing MN 337 Furniture &Related Manufacturing Chisago Co./MN 517 Telecommunications Knowledge Chisago County 5415 Computer Design &Related Knowledge Chisago County 5413 Architectural &Engineering Knowledge Chisago County Source: US Census Bureau The second targeted audience is the Twin Cities real estate community, including local North Branch real estate professionals. In the metropolitan area, companies frequently use a broker or developer to assist them in the site search process. By educating the real estate professional,North Branch increases the likelihood of being considered by their clients looking for a metro fringe location. One strategy is to display at events brokers attend. An example would be continuing education classes through St. Thomas related to development issues. Another would be to display at the annual awards/conferences of the National Association of Industrial and Office Parks and the Organization of Commercial Realtors. By displaying at an event,North Branch can reach a greater mass of its target than trying to entice the brokers to travel to North Branch. • North Branch Marketing Plan Page 4 As the initial "news item,"North Branch could focus on: • the selection of the Master Developer for ESSBY • 2004 Business Expansions and Relocations • JOBZ benefits Strateey for Business Community 1. Targeted Audience Number 1 • Potential users (businesses) 2. Information Source • Mailing list generated by NAICS code for specific zip coded • Vendor or Supplier names provided by existing local businesses 3. Budget Marketing ,q Press Releases announcing new business expansions As needed one Post Card Mailing(production,printing, postage) 4 times/yr $2200 TOTAL $2200 4. Timeline for Implementation • Immediately begin with advertisement recognizing the ESSBY project's opening next Spring with infrastructure. • Follow each grant award and business expansion with a press release and advertisement. Strategy for Twin Cities Real Estate Market 1. Targeted Audience Number 2 • Twin Cities Real Estate Professionals 2. Information Source • Real Estate Professional Target List 3. Budget • North Branch Marketing Plan Page 5 Marketing Activity Frequency Cost Press Releases on Business Expansions As needed None Congratulatory advertisements in regional As needed $3300 papers including the MN Real Estate 6 times max Journal, the Business Journal and others Feature Articles (i.e. Results of Market As Needed None Research Process, Grant Awards, Industrial Park Expansion) Direct mail Piece (production&printing— 4 times/yr $200 postage cost included above) Display at key broker events I Twice annually $1500 TOTAL $5,000 4. Timeline for Implementation • Immediate contact with the Minnesota Real Estate Journal on the outcome of the ESSBY Master Developer search • Begin design of postcards immediately Overall Marketing Plan Budget Through the Marketing Plan budgets have been developed for each core activity. For ease of reference a master budget has been developed and contained in this section. This is the budget for the first year of the program, future years will not have as significant production costs, since updates to existing media cost less than new development. Marketing Strategy Implementation Cost' Target: Business Community $2,200 Target: real Estate Community $5,000 Sub-Total $7,200 lYlarketn Vols Delo` ment' .: Power Point Presentation $ 750 Web Site Update $4,000 Fact Sheets $2,500 Press Releases $1,500 TOTAL $15,950 Final Considerations and Recommendations A marketing plan is a fluid document that changes with the over the course of time to • reflect the economic development conditions within a community. It is important to note that the primary outcome of implementing a plan is to alter a community's image. An effective marketing plan will highlight a community's assets and promote business North Branch Marketing Plan Page 6 development opportunities. By focusing the marketing plan on successes and innovations the message is conveyed to the business and real estate communities that North Branch is a progressive, entrepreneurial community To effectively develop an image takes time and commitment. A concerted effort for a period of one year will not reach this goal. However,by continuing the same or similar marketing activities for many years does make an impact. We recommend that North Branch not consider the above marketing plan as a one time fix,but a template for future business development activities. Additionally, North Branch has the opportunity to partner with Chisago County and the State of Minnesota in their marketing. These opportunities may provide economy of scale that may not be available to North Branch alone. To reach the prospects is only one component of marketing. Another is customer service through timeliness, follow through, and current professional materials. The process needs to be consistent from project to project. This helps staff, appointed and elected officials in evaluating and comparing projects. It also eliminates any perception of unequal treatment. The development of the power point presentation, web site and fact sheets enhance the level of professionalism used to address business inquiries and concerns. To assist with the timeliness of response to business inquiries a checklist has been developed for staff use. The checklist will maintain a record of when the inquiry was made, pertinent contact information,project scope, and what information was distributed and when. Additional outcome measures will need to be developed to evaluate the effectiveness of the Marketing Program. These measures can include the number of contacts made, information requests filled, site tours conducts, and business relocations and expansions. By utilizing the checklist and marketing tools to respond to the inquiries generated by the marketing plan, North Branch will be able to maintain and grow a healthy economic system. North Branch Marketing Plan Page 7 EXHIBIT A North Branch Competitors Matrix 263 Acres 2 to 38 $1.00 to $2.00 17 JOBZ No (25 sites) Acres Sites; TIF t 70 Acres 1 to 28 Not Listed; TIF: No ` (single site) Acres City Owned Abatement; IDB 143 Acres 2 to 10 $3.25 to $4.50 TIF (2 sites) Yes- 1443 ` (3 sites) Acres Acres (C&I) 115 Acres Varies $2.30 None 100 zoned kms, zbut not served 6 acres 2 acre $2.60 No No n e 8.5 Acres 2.5 to 3 $3.80 RLF No (septic) Acres 69 Acres 3 to 30 $0.34 TIF; Possibly f Acres Technology south of � „ , Zone Airport Park - w z 17 Acres 5 to 25 Older park (5 TIF; RLF; No l Acres acres ;Rural ED remaining) Microloan $2000 per acre New 25 Acre Park: $0.70 , ax't 16 acres 1 to 6 $1.10 with TIF, RFL No-ESSBY acres infrastructure JOBZ, Co. IBEP, USDA 200 3 to 200 $1.25 with TIF, RLF, No a infrastructure Co. BEP, 8...W USDA North Branch Marketing Plan Page 8 City of Milaca Economic Development Plan February 2004 y„ J Prepared by Barsness Consulting Services, Inc. • I The Economic Development Commission(EDC) assists with the economic development program for the city of Milaca. Past practices have been to accommodate requests for information, but not to actively promote and market the community. In recent months physical and economic changes have surfaced resulting in the need to plan for future growth. Within four(4) years, Milaca will add 140 single family homes. This increase in population has far reaching impacts on the local school district, city services and budgets, and community cohesion. Strategies will need to be implemented to maintain the characteristics that make Milaca an attractive location: the rural atmosphere, quality schools and government, and an openness to embrace growth and change. Additionally, Milaca's designation as a Job Opportunity Building Zone (JOBZ) sub-zone expands its ability to attract new industry. Given the limits associated with the program both in terms of time duration(12 years maximum) and the amount of land that can be designated, the city must put this tool to the highest and best use. With these factors surfacing, the EDC embarked on developing an economic development marketing plan. Over a series of four(4) meetings, the EDC completed the following activities. 1. A community self-assessment using a Strengths, Weaknesses, Opportunities, and Treats (SWOT) Analysis. 2. Completed a survey of local leadership. 3. Reviewed data gathered on other communities considered to be competitors in the region. 4. An organizational self-assessment. 5. Brainstormed strategies to capture the greatest share of financial resources, business expansions and residential growth. Together these activities formed the framework for the Milaca economic development plan. I. COMMUNITY ASSESSMENT AND LOCAL LEADERSHIP "In order to determine where you want to be you need to figure out where you are." This statement is the premise for completing a self—assessment of the community's characteristics and the commitment of local leadership. Each member of the EDC was asked to complete a questionnaire on their perceptions of local issues and the leadership's ability to manage the issues and support change. The Local Leadership Survey(See Exhibit A) identified key attributes of Milaca that can be divided into two categories: geographic and value-based. Location of the community between the Twin Cities, St. Cloud, and the Brainerd Lakes Region provides multiple markets to draw both businesses and residents. Adding to the Barsness Consulting Services Page 2 12/8/2005 • geographic benefit is the transportation system. Serviced by Highways 169 and 23, Milaca is easily accessible and has ease of access to three regional centers. The other attributes are value based. EDC members identified rural character, family values, quality schools and effective local government as the most important. In order to preserve these attributes,members emphasized a need to manage and control growth. It was also perceived that Milaca experienced difficulty in attracting employment opportunities and higher quality jobs. The professed reason for this was an inequity in the tax rate between Mille Lacs and Sherburne Counties. However, the group felt that a change in the tax situation was unlikely, and the focus needs to be on formulating a plan to identify and market the community's strengths. Overall, the EDA felt that it is important for local leadership to support a plan and set community priorities that are realistic and achievable. Confidence in local leaders, including school and local government officials,business leaders and community organization leaders is high. The leadership is receptive to change for the overall benefit of the city. The EDC is confident that cooperation between the various organizations is achievable through continued and improved communications and the pooling of informational and financial resources. Strength,Weaknesses, Opportunities and Threats (SWOT) Analysis To define the community's competitive advantage and growth opportunities, an evaluation of its core characteristics was completed. EDC members examined 46 different factors and determined if the factor was, in their opinion, a community strength, weakness, opportunity or threat. (see Exhibit B) for list of factors. Initially, the Strengths were identified as: • High level of air quality • Adequate local clinics and health care professionals for basic health care • Adequate major highways • Availability of potable (drinking quality)water It was recognized that the majority of cities can also claim high air quality, good healthcare and clean drinking water. However,the city's location on two major Highways, US 169 and State 23, is a geographic advantage over other communities is the region and provides access to multiple markets. The evaluation results showed other qualities that were identified as potential strengths. These qualities did not score as high as the initial four above, but were considered attributes. These characteristics included: • General appearance of the community • Rate of population growth Barsness Consulting Services Page 3 12/8/2005 • • Availability of accessible housing • Quality of local elementary and secondary education • Government services except taxes and tax base • Proximity to other markets Of these characteristics, Rate of population growth, Availability of accessible housing and Proximity to other markets are opportunities for community enhancement. Additionally, the consultant identified the Availability of fully served industrial sites and Utility availability and cost as other opportunities for consideration. Rate of populationrg owth Milaca is one of the communities in Mille Lacs County that has experienced in- migration over the past few years. New housing starts have been steady and growing. The city's location in the corridor between the Twin Cities and the Brainerd Lakes Area is conducive to continued growth. Availability of accessible housing New housing costs are very affordable ranging from $120,000 to $140,000 making them affordable to young families. There is more than adequate supply to meet the growing demand. Milaca is annexing 60 acres to accommodate a 140 . single family and town home development. Similar homes are selling from $10,000 to $15,000 more in Princeton and at least $30,000 more in Elk River. The existing home market is even more affordable. According to 2000 Census the median value of a home in Milaca is $77,700. Comparably the median value for other areas is: Cambridge $100,200 Mille Lacs County $91,000 Princeton $88,400 Sherburne County $137,500 Elk River $144,800 Hennepin County $143,400 St. Cloud $94,300 Proximity to Other Markets Milaca's location on Highways 169 and 23 provides direct access to both the Twin Cities and St. Cloud markets. The city is within 60 miles of Minneapolis- St. Paul, 30 miles from St. Cloud, and approximately 60 miles from the Brainerd Lakes Area. These markets serve as economic pools for Milaca. From these areas Milaca can recruit new businesses, expansions, residents. Conversely, the areas serve as markets for local good and services supporting existing businesses. Availability of fully served and attractive industrial sites The city of Milaca owns 42 acres of land adjacent to Highway 169 and accessible from Highway 23. Road and utilities are available at the edge of the property,but will need to be extended to future building pads. There is no mortgage on the property and the site was recently designated as part of the Job Opportunity Building Zone (JOBZ) for the Region. The combination of the debt free land and JOBZ designation provides a significant advantage over all neighboring Barsness Consulting Services Page 4 12/8/2005 • communities, since the competition's sites have to sell for a specified price in order to cover their costs. Milaca has the flexibility to be proactive on the land pricing for particular projects. Utility availability and costs East Central Energy(ECE)provides electric service to the city. As a cooperative, ECE can provide financial assistance to businesses and the city of Milaca to assist in economic development efforts. Communities within the seven county metropolitan area are served by investor owned utilities that can not provide funds to a project. Combined, the five opportunities listed will form the framework for Milaca's economic development goals and strategies. The essence of which will be discussed in Section V. As part of the evaluation, the EDC identified eleven weaknesses. None of the characteristics defined as a weakness was perceived as a threat to community growth and development. The eleven weaknesses can be divided into three categories: housing, workforce, and goods and services. • In the housing arena the availability of Executive level and Rental Apartments were identified as lacking in the community. EDC members felt that the existing town home supply was meeting the community's rental need. As for the Executive housing, Milaca will not likely attract this type of housing until a larger commercial base is available to residents. Workforce issues centered on a perceived deficiency in technical, professional and managerial workers. However, data from the 2000 Census indicates that 31% of Milaca residents would categorize themselves as having Management, Professional and Related Occupations. The next highest percentage, 22.9 % are in Production and Transportation. Interestingly, the industries residents are employed in represent almost the same percentage breakdown. Education, health, and social services represent 29.2 percent of the population (closely matching the 31%who categorized themselves as Professionals and Managers) and Manufacturing 18.7 percent (again a match to the percentage that are involved in Production Industries) . Given the information provided by the Census, it can be concluded that Milaca has a large segment of its population in service industries. The community does not have a significant portion of its population involved in higher skill technical jobs. Goods and services were identified as scarce in the city. The availability of a hotel and quality restaurants were listed as weakness, along with lack of retail stores and commercial development. Little concern was expressed over this weakness since the consensus was that retail development follows population and industry growth. EDC 0 members felt that this type of development would happen when the time is right. Barsness Consulting Services Page 5 12/8/2005 • From the SWOT discussion, EDC members derived at a strategy to encourage housing development that is appealing to the type of worker(skilled) the community wants to attract. By establishing a critical mass of high skilled workers, the city can utilize its workforce to draw new businesses to Milaca. II. COMPETITION ANALYSIS An effective plan needs to evaluate the city against other communities vying for the same resources: residents and businesses. The evaluation gages the potential for success in marketing and provides a comparison of attributes and characteristics used by residents and business when considering a move. Six cities were researched using a community interview worksheet. City staff was called and asked specific questions related to their land and housing inventories. The information gathered is used to determine if the demand for certain market segments is being met. A summary of the community interview is detailed below. Cambridge Industrial Land Inventory ■ Two (2) lots remain in the SE Industrial Park totaling 6.2 acres ■ Location is at the southwest intersection of Highways 65 and 95 ■ Sale Price is $1.75 per square foot ■ Incentives Used—received $1.6 million grant for a new 110 acre industrial park located at Highway 65 and 95 and County Road 34. The park is scheduled to open in spring 2004. Housing Inventory ■ In 2003 had 119 new single family homes, 145 new homes in 2002 and 67 new homes in 2001. ■ There are 1190 developable lots available. ■ Three new subdivisions are planned totaling 80 lots. ■ Multi-family units built include 32 Apartments and 24 townhomes in 2003. Elk River Industrial Land Inventory ■ EDA owns 90 acres at Highways 169 and 10 that is not yet available ■ 255 acres available by private ownership. ■ Sale Price is $3.00 per square foot ■ Incentives not used for industrial growth only redevelopment. Barsness Consulting Services Page 6 12/8/2005 • Housing Inventory ■ In 2003 had 234 new single family homes, 184 new homes in 2002 and 156 new homes in 2001. ■ There are 1267 developable lots available. ■ Three new subdivisions are planned totaling 80 lots. ■ Multi-family units built include 208 Apartments and 37 townhomes in 2003. No rental units. Foley Industrial Land Inventory ■ Fifteen acres are available located on Highways 23 and 25 ■ Average assessment is $20,000 ■ Sale Price is unknown by local staff ■ Preliminary planning for a new industrial park is underway and will occur when Highway 23 becomes a four-lane. Housing Inventory ■ In 2003 had 15 new single family homes, 20 new homes in 2002 and 20 new homes in 2001. ■ There are 40 developable lots available. ■ No multi-family units built in past three years. Mora Industrial Land Inventory ■ Four(4) acres available in first addition located at Highways 23 and 65. Forty-two (42) available in the second addition located 20 miles from Interstate 35. ■ List price is $5,055 per acre with improvements ■ Incentives available plus JOBZ potential. Housing Inventory ■ In 2003 had 5 new single family homes, 7 new homes in 2002 and 12 new homes in 2001. ■ There are 200 developable lots available. ■ Multi-family units built include 4 twinhomes in 2003, 5 twinhomes in 2002, and 3 twinhomes in 2001. 21 rental units were built in 2002 and 24 units in 2001. Onamia Industrial Land Inventory . • Staff did not know any information about building sites. Housing Inventory Barsness Consulting Services Page 7 12/8/2005 ■ In 2003 had 2 new single family homes, 2 new homes in 2002 and 1 new homes in 2001. ■ Three (3) twinhomes were built in 2002. Princeton Industrial Land Inventory ■ Three (3) acres available one block off Highway 169 ■ Opening 40 to 80 acres west of the airport in 3 to 4 years. ■ Sale Price is unknown ■ Incentives include TIF and tax abatement. Housing Inventory ■ In 2003 had 41 new single family homes, 59 new homes in 2002 and 56 new homes in 2001. ■ There are 22 developable lots available for twinhomes. Need wastewater expansion to accommodate additional growth. ■ Multi-family units built include 41 townhomes in 2003, 2 unit condo in 2002 and 39 rental units in 2001. Conclusions Milaca has a geographic advantage over all the cities except Elk River and Princeton. However, compared to Elk River, Milaca has a more economical land price and the JOBZ designation for industrial growth. These factors provide a competitive advantage to Milaca for business attraction. Related to housing, Elk River has sufficient supply and is meeting the demand for mid-level housing. For the first-time home buyer, Milaca is more affordable. Princeton is closer to both St Cloud and the Twin Cities. Milaca, nonetheless, has property available for new industry, while Princeton is three to four years away from having property to market. Housing in Princeton is closer to the Twin Cities,but Milaca can provide a better value for the commute. The other communities evaluated do not pose a threat to industrial or business growth. Milaca can compete head-to-head with Cambridge and in most instances win because of Highway 169. The smaller communities will not weigh into the decision due to their size and locations. III. ECONOMIC DEVELOPMENT ORGANIZATION ASSESSMENT • The Economic Development Commission has played an advisory role for planning, managing and implementing the economic development activities for the city of Milaca. Barsness Consulting Services Page 8 12/8/2005 • As a result of the planning session, the organization will incur additional tasks and require greater commitment from its members. To determine the Commission's strengths and needs, the members were asked to complete a self-assessment. (See Exhibit C) Questions were asked about the organizational structure, project development practices and community interaction. Members ranked their responses on a scale of 1 to 5 with the ratings representing the following responses: 5 =We do an excellent job in this area. 4 =We do a respectable job in this area. 3 =We do an OK job in this area,but still need improvement. 2 = We don't do this well, and our performance holds us back as an organization. 1 =We have done nothing in this area. N/A=More information on our work in this area is needed before assigning a rating. The following areas received a rating of four: • The EDC involves key sectors of the community in its activities. • The EDC has a clear mission statement and economic development strategies that are directly linked to it. • The scope and focus of the EDC's economic development activities appropriate. The remaining areas garnered a score of three with the exception of the following areas. Related to organizational structure: • The EDC's committee structure is well-defined and effectively delegates responsibility to members. • The EDC has clear expectations of the staff that are defined by personnel policies and job descriptions consistent with the organization's mission. • The organization has a fund raising plan that adequately takes into consideration both operating and capital support. Conclusion: The uncertainty is related to three basic organizational components: member duties and involvements, definition of the staff responsibility, and budget. Related to Project Development Practices: • The organization has a well-developed set of criteria for determining in which specific projects it should get involved. • The EDC has an effective method of monitoring and evaluating its projects. Barsness Consulting Services Page 9 12/8/2005 Conclusion: The EDC members have identified a need for a formalized project evaluation, tracking and reporting. There was no consensus among the Commission members, indicating potential uncertainty as to their role or involvement: Related to Community Interaction: • The EDC maintains strong ties with legislators and public officials regarding issues of local economic development. Conclusion: Milaca has not had or currently does not have a critical legislative issue such as a transportation need or TIF amendment. In summary, the Economic Development Commission believes that it is focusing on the right activities and involving the right people. To assist them with their efforts, further definition of the members and staff roles is necessary, along with establishment of a more structured budget. To help the group better evaluate their efforts a formalized project evaluation process should be developed. This would allow the EDC to measure their decisions against a set of criteria and monitor the effectiveness of their marketing program. . IV. GOALS AND STRATEGIES The information contained in the above report is extensive. Recommendations have been provided throughout the document and this section will summarize and categorize the information into three broad goals. Each goal will have objectives with specific implementation strategies. Each strategy is a suggestion to assist the community in meeting its goals. These suggestions can be adopted, modified or rejected by the Economic Development Commission. Goal 1: Maintain Milaca's value based attributes through on-going community development. 1 a. Promote housing for all economic levels. • Place community information packets in Model Homes • Offer new and existing companies information on housing opportunities for their workers • Work with local banks to offer first time homebuyer or other incentive programs to new residents • Contact local real estate professional to determine if they had current or adequate information on Milaca as a place to work and live. lb. Market successes internally to resident and businesses • Continue to participate in local radio show. Ask station to air the city report multiple times throughout the day. Emphasize business activity. Barsness Consulting Services Page 10 12/8/2005 • Encourage the local newspaper to feature business achievements such as new hires, expansions and product development. The focus should be on businesses already located in Milaca. • Work cooperatively with the Chamber of Commerce to promote opportunities for business involvement through networking, educational programming and recognition. • Celebrate all building activity with a ground breaking and completion with a community open house. Goal 2: Foster economic vitality through business growth and diversification. 2b. Assist existing companies with their expansion needs • Configure a process for visiting with local businesses that includes a tracking system. • Educate local businesses on training and financing resources available to them. 2a. Capture new business and relocations • Develop a specific marketing plan for attracting technology and manufacturing firms utilizing JOBZ. • Gather and continually update strategic business information: labor force data, financial programs, land pricing and availability, etc. • Evaluate content and effectiveness of City web site. Link site to strategic partners including MN Pro and local Realtors. • Promote business opportunities through feature articles in real estate trade publications,press releases and personal contact with targeted businesses. 2c. Support the retail and commercial sectors by drawing additional visitors into the community. • Examine the potential of developing a picnic/play area on the city owned parcel on the northeast side of Highway 23. • Assess location for signage along 169 directing traffic into Milaca. • Create kiosks of community information in key locations such as Embers, Milaca Unclaimed Freight, and other destination businesses. • Evaluate the best mix of businesses for the Highway 23 exit. Promote this intersection as the "stopping-off point" for travelers. Barsness Consulting Services Page 11 12/8/2005 i Goal 3: Establish a framework for Economic Development activities 3a. Evaluates stem for economic development service delivery Y p • Consider modifying the EDA from being the City Counsel to a seven(7)member board with representation from the business community. • Provide EDA with powers and authorities as specified in Minnesota Statutes 469.094 to 469.108 • Assess future role of EDC • Establish EDA as responsible party for managing and implement the Economic Development Plan 3b. Define roles and responsibilities for the City Council, EDA, EDC and Staff • Based upon the adopted strategies, establish committees to oversee the tasks. • Structure the methodology for recommendations to the City Council on business activities. • Assure continuity of program through recorded (written) minutes. 3c. Formalize process for project evaluation • Set criteria for determining city financial participation in projects. • Develop or amend policies to reflect criteria • Establish a process for tracking and reporting business leads 3c. Set program up for success • Establish a budget for organizational operations including marketing, staffing, and project investment. • Identify and ask for financial participation from economic development partners. • Promote successful projects through direct mailings or press releases to other targeted companies. • Develop a work plan and evaluate annually to make adjustment. V. FINAL COMMENTS The above Goals and Strategies represent months of work by the Economic Development Commission and city administration. Careful thought was given to the impact of the goals on Milaca's future as a community. The City Council is encouraged to consider the time, energy, and innovation committed to the Economic Development Plan. It should be noted that Goal 3a relating to an EDA, is a direct recommendation by the consult. The Economic Development Commission was involved in the discussion and provided their input. This recommendation is based upon the level of involvement and access to marketing and financial tools needed to establish and maintain an effective Barsness Consulting Services Page 12 12/8/2005 economic development program. Should the Milaca City Council decide to move p forward in implementing the Plan, city resources will need to be pledged to support it. An EDA allows the City Council to have direct control over these resources. The alternative of maintaining the existing structure would require less commitment of budgetary and staff resources. Consistently, it can be expected that the ability to accomplish the above goals would be greatly diminished. The economic development structure chosen by the City Council will impact Milaca's development options. Barsness Consulting Services Page 13 12/8/2005 EXHIBIT A Why plan? (Questions to local leadership) Directions: Have each individual leader take a moment to answer in writing the following questions. Then have them share their answers with each other and discuss. 1. What do you like or appreciate about your community? 2. What can you do to ensure that these attributes will be here ten years from now? 3. What are the most important problems that your community is facing? 4. Why do these problems continue to exist? 5. What can be done to resolve these problems? 6. What major social and economic trends are occurring in the U.S., and how will they affect our community? 7. How can the leadership of this community work together more productively to make this a better community? 8. How can we use our community's limited resources more effectively to achieve the results we want? 9. Will the leadership of the community support a process to address these issues? Barsness Consulting Services Page 14 12/8/2005 EXHIBIT B LEADERSHIP SURVEY PERCEPTION OF THE COMMUNITY'S DEVELOPMENT SITUATION Place a checkmark(_) in the column that best reflects your opinion. Is each item listed on this survey a strength of the community, a weakness, or is it an average or normal situation? Please answer every item, even if you are not very familiar with it, responding based on your perception of it. For example, what is your opinion of the quality of local elementary education: Strength ,Normal (what you would expect), Weakness (a problem) , or No Opinion . QUALITY OF LIFE Strength Normal Weakness No Opinion 1.Availability of executive-level housing 2.Availability of moderate cost housing 3.Availability of housing for low-income families 4.Availability of rental apartments 5. Cost of housing overall 6.Level of crime 7.Level of cultural activity and facilities 8.Availability of recreational opportunities 9.Level of air quality 10.Attractiveness of the physical environment 11.General appearance of the community 12.Availability of adequate hospital facilities 13.Adequate local clinics and health care professionals for basic health care assistance) 14.The rate of population growth in the community 15.Availability of elderly housing 16.Availability of accessible housing 17. Quality of housing Barsness Consulting Services Page 15 12/8/2005 LOCAL EDUCATION SITUATION Strength Normal Weakness No Opinion 1. Quality of local elementary education 2. Quality of local secondary education 3. Quality and availability of post-secondary education in the community 4.Involvement in the community by the higher education institutions 5.Availability of vocational programs at the secondary level (job skills,computer classes,etc.) LOCAL GOVERNMENT SITUATION 1.Adequacy of local police protection and public safety 2.Adequacy of local fire protection 3.Adequacy of trash pickup and waste disposal 4.Adequacy of local planning and zoning 5. State and local permitting and regulation process for business 6.Annexation policy of the town/city 7.Adequacy of local building codes 8.Level of local property taxes 9.Adequacy of local tax base to cover cost of local government 10. Cooperation of local government with business 11. Cooperation of local government entities with each other 12. Long-range planning for municipal improvements and capital budgeting S Barsness Consulting Services Page 16 12/8/2005 • LOCAL LEADERSHIP SITUATION Strength Normal Weakness No Opinion 1.Adequate level of professional staff in government offices and development organizations 2. Involvement of both public and private sectors in development programs of community 3. Level of leadership support of economic development programs 4.Level of communication and cooperation between various organizations involved in the development programs of the community 5.Level of awareness of community regarding the local development programs 6.Level of leadership commitment to advancing the growth and development of the community • 7.Level of funding for local development programs , 8. Level of cooperation with other development organizations serving this area of the State LABOR SITUATION 1.Availability of unskilled and semi-skilled workers 2.Availability of skilled industrial workers 3.Availability of clerical(retail and office)workers 4.Availability of technicians and professionals 5.Availability of managerial personnel 6.Availability of quality jobs for the workforce residing in the community 7. Level of wages and salaries paid locally 8. Quality of labor-management relations 9.Availability of post-secondary vocational training 10.Availability of on-the-job training assistance 11.Availability of adult/continuing education at a post- secondary level . 12.Availability of upgrade training for existing employees 13.Availability of apprenticeship programs Barsness Consulting Services Page 17 12/8/2005 TRANSPORTATION SITUATION Strength Normal Weakness No Opinion 1.Adequate local major highways 2.Movement of traffic in the community 3. Condition and maintenance of local streets and roads 4.Adequacy of commercial air passenger service 5.Adequacy of the Airport for air freight shipping needs UTILITY SITUATION 1.Local telephone company's quality of service 2.Connection of local telephone company to national long distance network 3. Cost of electricity 4.Availability of high quality electric service 5.Availability of natural gas 6. Cost of natural gas 7.Availability of potable(drinking quality)water 8.Availability of adequate wastewater treatment capacity 9.Availability of adequate water and sewer lines to industrial/commercial sites 10. Cost of water and sewer services 11.Availability of cable TV 12.Internet access REAL ESTATE SITUATION 1.Availability of fully served and attractive industrial sites 2.Availability of attractive and well located commercial/ retail sites 3. Cost of sites to new users • Barsness Consulting Services Page 18 12/8/2005 • Strength Normal Weakness No Opinion 4.Availability of suitable industrial building space 5.Availability of suitable commercial/retail space 6.Availability of subdivided sites for new homes CAPITAL SITUATION 1.Availability of low interest or tax-exempt financing for new industrial facilities 2.Availability of low interest loans for small business 3.Availability of venture capital from local sources for business startups 4.Availability of home mortgage financing 5. Investment in the community by local financial institutions MARKET SITUATION 1.Location of the community for serving the national market 2.Location of the community for serving foreign markets 3. Proximity to other major markets in the State 4.Appearance of the downtown for attracting business activity 5.Appearance of the highway-oriented retail/commercial areas for attracting business activity 6.Availability of a range of retail stores and goods in the community 7.Availability of a range of quality restaurants in the community 8.Availability of a range of personal services(legal, professional,dry cleaning,repairs,etc.) 9.Availability of business services and professional services that support business and industry 10.Availability of adequate hotels and motels 11.Availability of adequate conference and meeting facilities • Barsness Consulting Services Page 19 12/8/2005 • Strength Normal Weakness No Opinion 12.Adequacy of local newspaper for promotion of local business activity 13.Adequacy of local industrial marketing programs 14.Adequacy of local programs to attract new retail and commercial business to the community 15.Adequacy of the marketing program to attract tourists 16.Impact of the tourism industry on the community 17.The range of attractions for expanded tourism 18.Availability of funding to support tourism development What do you consider to be the five most important problems that your community is facing now and into the future? 1. 2. 3. i 4. 5. Name Date • Barsness Consulting Services Page 20 12/8/2005 EXHIBIT C Self-Assessment Tool for Local Development Organizations This tool can be used to assess the performance of your local development organization(LDO). It may help identify needs and strengths of organizations that can be used in the local economic development action plan. You can use the following rating to help identify areas in your organization that need attention: 5 = We do an excellent job in this area. 4 = We do a good,respectable job in this area. 3 = We do an OK job in this area,but still need improvement. 2 = We don't do this well, and our performance holds us back as an organization. 1 = We've done nothing in this area. N/A = More information on our work in this area is needed before assigning a rating. PART I. ORGANIZATION MISSION RATING PRIORITY NOTES A. The LDO serves its target constituency. B. The LDO's program includes a wide range of economic development activities appropriate for the area. C. The LDO has a plan that is used and was developed with input from a wide range of local residents. PART 11.ORGANIZATIONAL STRUCTURE A. The LDO has clearly defined by-laws that are reviewed and updated every two years. B. The LDO actively engages members as active participants in the organization. C. The Board of Directors is trained and is actively involved evaluating its policies. D. The LDO's committee structure is well-defined and effectively delegates responsibility to members. E. The LDO has a clear mission statement and economic development strategies that are directly linked to it. F. The LDO has clear expectations of the staff that are defined by personnel policies and job descriptions consistent with the organization's mission. Barsness Consulting Services Page 21 12/8/2005 G. The organization has a fund raising plan that adequately takes into consideration both operating and capital support. H. The LDO involves the key sectors of the community in its activities. PART III.PROJECT DEVELOPMENT RATING PRIORITY NOTES PRACTICES A. The LDO regularly assesses community needs and assets in the area of economic development. B. The scope and focus of the LDO's economic development activities are appropriate. C. The organizations has a well-developed set of criteria for determining in which specific projects it should get involved. D. The LDO has an effective method of monitoring and evaluating its projects. PART IV. COMMUNITY INTERACTION A. The LDO is adequately communicating with other organizations involved local economic development B. The LDO maintains strong ties with legislators and public officials regarding issues of local economic development. Barsness Consulting Services Page 22 12/8/2005