Loading...
HomeMy WebLinkAbout02-15-95 ECONOMIC DEVELOPMENT COMMITTEE AGENDA February 15, 1995 8:00 a.m. Army Reserve Center 4655 North Lexington Avenue 1. Call to order. 2. Approve minutes from January 19, 1995 meetings. 3. Monthly Report. 4. Marking Packet. 5. Miscellaneous 6. Adjournment. Please Contact staff if you are unable to attend this meeting. * Please note meeting date change. .�- Economic Development Committee Meeting Minutes January 19, 1995 8 : 00 a.m. Army Reserve Center 1 . The meeting was called to order at 8 : 09 a.m. 2 . Present were, Dan McCallum, Robb Carlson, Jr. , Steve Freimuth, Mary Miller, Terry Nagle and Ray McGraw. 3 . Marketing Packet Mary Miller read minutes from December Meeting and was approved. Rob Carlson read notes from Brian Fritsinger on updated Marketing Packet . Ray McGraw was given a quick update on the Marketing Packet . Steve Freimuth commented that Mayor' s letter should be on the page ' s of the brochure and not on the inside cover. Everyone decided we should get another bid on the brochure, an Arden Hills company if possible . Mary Miller and Dan McCallum will work on the Quality of Life Section. Steve Freimuth said part of Lake Josephine is part of Arden Hills so we have two parks? No mention of Mounds View High School in brochure . Miscellaneous Dynamark showed interest in building two sites in Arden Hills, we will continue to stay updated. Six (6) new companies have shown interest in Arden Hill , interest in Arden Hills is heating up ! Everest has asked for a 60 day extension, Bev will be meeting with them on January 19th, 1995 . Amoco has reached agreement on easement with doctor' s office . Terry and Ray both agreed that TCAAP is something we should stay in touch with, Ray will keep us updated. BF\jt From:bcdtori To: Mr.Brian Friisinger Date:7J10/95 Time:14:57:02 Page 1 of 1 ECONOMIC DEVELOPMENT UPDATE ; ..,,,,� EDAM DTED EDAM -/ Economic Development Association • Minnesota Department of Trade Economic Development of Minnesota Contact'John Moon.612-854-6215 Contact:Gene Goddard,612-297-1168 February 10. 1995 1-800-657-3858 Volume 2,No.7 This Week In Review: 1995 HUD CDBG Funding: DTED's enactment. This bill has been introduced Office of Community Development by Ozment, Rest, Abrams and Winter Drinking Water Revolving Fund finalized its contract with HUD for 1995 and referred to the House Taxes and Tax Governor Carlson's 1995 Capital Budget Community Development Block Grant Law Committee. Contact your recommends a $9.2 million appropriation funding. DTED will have $26.1 million representative or EDAM Legislative to the Department of Trade and Economic available to assist communities and Committee Chairs, Tim Clawson at 507- Development's Public Facilities Authority businesses for development projects. 288-6460 or Patrick Connoy at 612-673- to match federal funding for the * $3.8 million for Economic Recovery 5193 with comments. establishment of a State Revolving Fund Loan Fund. Minimum Wage Bill: DIED Drinking Water Systems. The $9.2 Small Cities Grant Program: million would match $46 million in.federal * $14.0 million for Comprehensive Commissioner Gillette testified before funds that have been authorized by * $7.7 million for Single purpose Senator Novak's Jobs, Energy and Congress during the 1994 and 1995 Applications are due October 1, 1995 for Community Development Committee on sessions but remains contingent on the this allocation. Note: The announcement the department's position on the State's reauthorization of the Safe Drinking Water for the 1994 funding will be made in early minimum wage. 1994 analysis of the Act. March. DTED received 84 competitive potential job loss and a summary of The reauthorization of the Safe Small Cities Grant applications requesting recent research on the impact of raising the minimum wage from the January Drinking Water Act is expected to be a total of$48.7 million. 30th issue of Business Week magazine reintroduced in Congress in the next were distributed to the committee. couple weeks and is expected to be the Tax Increment Financing (TIF : first piece of environmental legislation H.F. 147 proposes a number of changes to Commissioner Gillette emphasized passed by Congress this year. Obtaining the Tax Increment Financing law. Among that raising the minimum wage sends a funding at both the federal and state levels these, Section 11 adds a new subdivision negative signal to Minnesota businesses. is needed before the Authonty can to Section 469.179, sets forth provisions He cited the case of Tyler L.P., a implement this new low-interest revolving that relate to districts or project areas for business in Benson, INLN that is now loan program for public water systems which certification is requested before considering where to site a major anion. Businesses have a choice which is so critical in the development of May 1, 1990 (including pre-1979 expansion. infrastructure, and vital for a healthy districts). Revenues generated from such where to locate and it effects business economic environment. There are over districts may only be used to: 1. Pay location decisions when Minnesota gets 702 municipal water systems and 986 outstanding bonds that are secured by out front on issues like this. To avoid public water systems (servicing 25 people revenues of the district and which were this problem, it is the department's or more) in Minnesota that could become issued and sold before Feb. 1, 1995 or position that the minimum wage issue is eligible for low-interest loans for upgrading issued to refund bonds issued before Feb. better handled nationally by the U.S. their drinking water systems. Final action 1. 1995; 2. Pay contractual obligations Congress. will take place in the 1995 Bonding Bill secured by or paid from revenues of a `pow,Compensation Hearing: this session. district, if the contract was executed before Jan. 15, 1995; 3. Fund an escrow Tuesday, February 14: Senate, Jobs, Telecommunications: Governor Carlson's account to make future payments under a Energy and Community Development, 1996-97 Budget Proposal recommends contract referenced in (2) above; 4. Make Subcommittee on Employment: Continue $4.5 million for the Department of payments to the school district relating to Testimony on Workers Compensation Administration for expanding MNet. N4Net referendum levies, or 5. Pay "reasonable" System. 10 am, 107 State Capitol. is the state's data and video telecommuni- administrative expenses, subject to other cations network. This network is being General Information:Committee Information: applicable limits on administrative House:612-296-2146 House:612-296-8611 developed to facilitate electronic commerce expenses. (10"'or5°`o statutory). Senate:296-0504 Senate:296-8086 between state and local governments and Once all outstanding bonds have been To Obtain Copies of Bills: educational institutions. This initiative will paid or defeased and all contractual House:612-296-2314 encourage agencies to improve efficiency, obligations have been satisfied or are fully To make 29 change of address.phone or fax 6-2344 lower costs and improve delivery of escrowed the authority must decertifythe number please contact Gene Goddard, services to the public. district. This applies to all districts and DTED Project Coordinator at effective the day following final 612-297-1168 or 1.800-657-3858. Drafted by DTED. From:bcdlori To: Mr.Brian Fritsinger Date:1/27/95 Time:17:08:20 Page 1 of 1 ECONOMIC DEVELOPMENT UPDATE DTED EDAM Minnesota Department of Trade Economic Development Association Economic Development of Minnesota Contact:Gene Goddard,612-297-1168 Contact:John Moon,612-854-6215 January 27,1995 1-800-657-3858 Volume 2,No.5 Governor. Governor Arne H. Carlson *Includes a $3 million increase for the * The Business Tracking Report for presented his FY 1996-97 budget to the Economic Recovery Loan Fund. the first quarter of 1994 showed the legislature this week. The following is a highest business formation level in two summary of key highlights: The Budget *Combines the Homestead and years. The number of new jobs Agricultural Credit Aid program (BACA) created by business start-ups increased *Holds the line on general taxes and and the Local Government Aid program by 19% while the number of jobs lost reduces fees by $17 million. (LGA) into a new County Homestead from business closings declined by 4% Block Grant program. Instead of funding over the previous quarter. *Holds growth rate in state government 3,700 separate units of government, the spending to 30 % slower than the projected block grants are delivered to 87 counties Legislature: The Senate Jobs. Energy growth in personal income (6.8 percent which will set up a process to distribute and Community Development versus 9.7 % over two years). this aid. Counties, cities and school Subcommittee on Employment (chair districts within each county will request Sen. Chandler) continued to hear *Reflects a decline in the Price of funding and will be required to justify that workers' comp. testimony. The Dept. Government from 18.4 'VG in 1995 to spending relative to funding requests from of Labor and Industry described its 17.61% by 1999. other municipalities. Local government workers' compensation fraud unit. aids and credits will receive $1.5 billion, a Since beginning operations in Jan. *Reflects a continuation of the phase-out 1.3 percent reduction from the previous 1993, 31 independent contractors, of the sales tax on capital replacement biennium."Virtually every study on insurance agents, employers and equipment yielding $68.3 million in reforming Minnesota's system of local individuals have been charged with savings to taxpayers over the next 2 years. government aid has concluded that the felony crimes, resulting in six state can no longer afford to dispense this convictions. In 1994 there were 551 — *Establishes a housing initiative that money without a revision of the aid complaints of fraudulent activity, up addresses the increasing housing shortage formula." Governor Carlson said. "It is from 412 in 1993. Of these in rural areas. Carlson proposes $15 time to reform 25 year-old spending complaints, 70% involved employee million in new funds for existing housing methods that are random and unfair." fraud; and 30% were filed against finance programs. The initiative will focus either an employer, insurance company on down-payment and equity assistance; *Includes S5 million for a workforce or a health care provider. gap financing for multi-family projects; readiness proposal designed to establish and funding for rehabilitation and closer ties between business, education Bill Introductions: development of local housing programs. and the student. The program will expand HF 204 (Dauner) Workers' Comp. youth apprenticeship options. It will be Reform: Provides for State rate *Recommends additional funding for the developed based on information provided approval, eliminates lump sum Minnesota Office of Tourism for travel by the labor market as to what specific payments, sets allowable increases in information services. skills and education a student needs for maximum weekly compensation. certain kinds of employment. HF 234 (Pugh) Workers' Comp. *Includes $1.7 million to set up a "One- Reform: rules for independent Stop Permitting" system to allow *Adds $2.1 billion for Higher Education, businesses to easily apply for many an increase of$79.4 million, with $61 contractors doing commercial or business licenses and permits million of the increase earmarked for the residential building construction. electronically. U of M. *Sets aside $180,000 for the MN Trade D FED: The Public Finance Authority information: Committee Information: Office to increase promotion of Minnesota authorized the sale of$89.5 million in House:612-296-2146 House:612-296-8611 business products abroad. bonds to be used to fund 35 loans for 55 Senate:296-0504 Senate:296-8086 municipal wastewater projects. The PFA To Obtain Copies of Bills: House:612-296-2314 *Requests $300,000 for Advantage MN. has achieved a AAA bond rating from Senate:296-2344 StandaId and Poor's. To make a change of address,phone or fax number *Requests $300,000 for the Job Skills please contact Gene Goddard,DTED Project Partnership for customized employee Coordinator at 612-297-1168 or 1-800-657-3858. Drafted by DTED. training for businesses. From:bod/on To: Mr.Brian Fritsinger Dale:1/20/95 Time:16:05:59 Page 1 of1 ECONOMIC DEVELOPMENT UPDATE DIED EDAM Minnesota Department of Trade Economic Development Association Economic Development of Minnesota Contact:Gene Goddard,612-297-1168 January 20, 1995 Contact:John Moon,612-854-6215 1-800-657-3858 Volume 2,No.4 This Week in Review: "Leapfrog" Development. Supports creation of Community Tax *Establish a State development strategy. Abatement Program. Governor: *Continue "review and comment" process -Workers' Compensation Reform. Governor Arne H. Carlson presented with school and county on development Association of Metro Municipalities: the State of the State Address to the projects. *City Finance/Revenue-Maintain 1995 Minnesota Legislature on Wed., *Repeal of LGAJHACA penalty for TIF. LGA'HAC.A, Fiscal Disparities, Property Jan. 18, 1995. The following is a *If LGA/HACA penalty is maintained, Tax Reform. summary of key points from that penalty should go to DTED Economic *Urban Revitalization-Direct funding for address: Recovery Fund program (ERF). housing, Set priorities for State funds, *Reform Workers' Compensation. *Increased funding for ERF program. Establish Metro Enterprise Fund. *Work to bring Minnesota out of the top *Local Permitting authority for *Transportation-Increased funding for 10 states in taxes. Telecommunications. highways and transit. *Improve training for specific job *Adequate funding for transportation. Coalition of Greater Minnesota Cities: requirements. *Improve tax policies to promote housing *Stable LGA/HACA. *Because of the growing number of development. *Annexation Reform. school-aged children and retiring *LGA/HACA growth. *State pay 50°'0 of new wastewater workers, Minnesota faces a $2.5 billion Association of Small Cities: treatment facilities. budget gap by 2005. *Increased LGA'HACA funding with *Limit water permit fees. *Allow voters to vote on referendums inflationary adjustment. *Repeal of LGA'HACA penalty on TT. for a Unicameral Legislature and Term *Opposes LGA•'HACA increase for school *Transportation Funding Increases. Lim its. funding. *Reform Welfare by: 1. Eliminate *Repeal of LGA/HACA penalty for TIF. Bill Introductions: welfare payments for able-bodied adults *Opposes unfunded mandates. without children; 2. Require welfare *Opposes levy limits. Workers Compensation Reform: recipients to work; 3. Continue *Growth Management and Annexation S.F. 96 (Sams): Reinstates state Minnesota Family Investment Program; Reform. regulation of workers' compensation 4. Require teenage parents to live at *Stable funding for wastewater treatment. insurance rates and modifies benefit home; 5. Continue child support payment *Increase in Gas tax for transportation. provisions. Companion to H.F. 69. enforcement. *Allow joint powers agreements for *Focus on offering every child the smaller cities to be eligible for Municipal H.F. 81 (Jacobs): Includes emergency opportunity to "win" in the world State Aid. medical services personnel under economy by having a world-class Association of Townships: workers' compensation provision education system and by creating good, *Reauthorization of gas tax for town roads providing a presumption of coverage for high-paying jobs. and bridges. certain occupational diseases. *Creation of a Department of Children *Address bridge bonding need of$127 and Education Services by consolidating million. H.F. 35 (Bertram) Identical to H.F. 69. 250 programs from 15 different agencies. *Promote fairness in annexation. Association of Counties: H.F. 92 (Seagren) Identical to H.F. 18. Legislature: *Sustainable Communities The House Local Government and -Ag Price Supports. Metro Affairs Committee meet twice this -Planning grants for economic week to hear presentations on legislative development. and policy platforms from the following -Local empowerment for ED. organizations: *Economic Development General Information: Committee Information: League of Cities: -Enhance county role in ED House:612-296-2146 House:612.296-8611 *Workers' Compensation Reform. -Repeal of$50,000 county levy limit Senate:296-0504 Senate:296-8086 *Urbangrowth outside city should be for ED. To obtain Copies of Bills: House:612-296-2314 restricted, annexation of urban land -County option to create a County EDA. Senate:296-2344 improved. -Tax Increment Financing: County To make a change of address,phone or fax number *Study impact of Metropolitan Approval, Repeal of LGA/HACA penalty, please contact Gene Goddard,DTED Project Coordinator at 612-297-1168 or 1-800-657-3858. Drafted by DTED. From:bodied To: Mr.Brian Fritsinger Dale:1113195 Time:16:13:00 Page 1 of 1 ECONOMIC DEVELOPMENT UPDATE DTED :; ,. EDAM Minnesota Department of Trade '-:1' ::{ Economic Development Association Economic Development of Minnesota Contact:Gene Goddard,612-297-1168 January 13, 1995 Contact:John Moon,612-854-6215 1-800-657-3858 Volume 2,No.3 The Ethical Practices Board has issued announced expansion plans. . . for North $15,000. Modifies dependent an advisory opinion to the Economic Dakota. And earlier in the year, Minnesota benefit provisions by multiplying Development Association of Minnesota. lost a bid to site a 150-worker wet corn weekly wage percentage by 1.25. EDAM had asked whether it could milling plant in the Red River Valley provide lunches, beverages, prizes or because of higher workers' comp rates. H.F. 40 - Introduced by Erhardt, other items of more than insignificant Mares, Broecker, Haas, Commers. value to officials attending its conference Small- and medium-sized business owner- if the source of funding for the items is operators continuously cite workers' comp Both bills will be heard by the registration fees paid by members rates as their principal competitive cost House Committee on Labor- registered for the conference and if all differential. Our border states constantly Management Relations attenders are offered similar access to remind these companies of that disparity. such items. The Association also asked Economic Development Update if these items could be provided to When will Minnesota's labor leaders forgo Survey Results: 320 surveys officials if they were financed in part by the 1900's class warfare rhetoric and distributed, 94 returned, 29.4°0 donations to the association other than support legitimate workers' comp reform to response rate. The top 5 categories registration fees, and whether the eliminate the few profiteers and parasites where the respondents either answers to either question would differ if who impair our job growth future? The strongly agreed or agreed as a a majority of attenders at the conference honest, hardworking vast majority of legislative priority are: A. were officials. The Board ruled that the Minnesota's work force, and their soon-to- Meaningful workers compensation acceptance by an official of a gift in the join-the workplace children, deserve reform 88 responses - 94(!iii; B. form of payments by a lobbyist or nothing less." Keep tax increment financing a lobbyist principal to defray the costs of a viable program 84 - 89°4); C. conference is not within any exception to Bill Introductions: Funding of DTED Economic the gift prohibition in the statutes, and Two Identical Worker's Compensation Recovery Fund 74 - 79%; the Board said the official is prohibited Reform Bills (H.F. 18, Betterman& H.F. D. Commercial property tax reform from accepting a gift from a lobbyist or 40, Erhardt) have been introduced in the 73 - 77°'0 ; E. ED competition lobbyist principal without the giver House. H.F. 18 - Introduced by Betterman, between states 69 - 73°.0. receiving consideration of equal or Kelso, Goodno, Girard, Cooper: Modifies greater value in return regardless of the workers' compensation provisions, limiting Winners of Economic Development conduit through which the official determination of maximum medical of the Year Awards at 1995 EDAM receives the gift. improvement date to a single enter Conference: determination, specifying permanent total Business Climate Improvement - WOR ERS'COMP. REFORRM disability minimum set at 65% of statewide Rochester Area Economic Comments by E.Peter Gillette Jr., average weekly wage, changing cessation Development, Inc. Commissioner, DTED copied from the of benefits provision, limiting adjustment Business Expansion - Anderson Minneapolis Star Tribune, January 7, increases to require legislative action, etc. Windows, Bayport 1995: Sets up fraud investigation unit Business Expansion - Arctco, Inc., "In his Dec. 22 letter, Bernie in Department of Labor and Industry; Thief River Falls Brommer of the Minnesota AFL-CIO requires insurance information disclosures Business Attraction- Concord alleges inconsistencies between job on the Department's demand, eliminates Environmental, Hawley. growth and the need for worker's economic recovery compensation and compensation reform. Indeed, Minnesota impairment compensation, sets new General Informadon: Committee Information: is currently experiencing nearly full maximum weekly compensation standards, House:612.296-2146 House 612-296-8611 Senate:296.0504 Senate:296-8086 employment. But our concern is not and sets standards for cessation of To Obtain Copies of Bills: about today but about tomorrow. We temporary total disability compensation. House:612-296-2314 are in a no-holds-barred competitive race Adopts new schedule for permanent partial Senate:296-2344 for new jobs with virtually every other disabilities. Sets employer liability for To make a change of address,phone or fax number state, even nations; In the past month refusal to offer continued employment at please contact Gene Goddard,DTED Project Coordinator at 612-297-1168 or 1.800-657-3858. Cargill, First Bank and Marvin Windows one year's salary up to a maximum of Drafted by DTED. Arden Hills Business Questionnaire Firm Name: rn/(S A,R'7 /r n 9/ 7(r e- Phone No: 4"J ----O�j S^33 . / � t ^ Address: / O I I L7 /e✓ J- Year Established: /93 / Contact Person: _��CL) a )`el d faro /1 Title: ecc,-ri ''h Yes No Did your firm begin at this location? 0 ©- Does your firm have other locations: 0 [ Is your Arden Hills location: RECFIVFD ❑ aquarters ❑ Branch ❑ Franchise InrOwn 0 Rent O 2 0 1955 How is your irm organized? Corporation 0 Partnership crry ui- AKutti rifts ❑ Sole Proprietorship 0 Other Which of the following best describes your firms business activities?- ❑cofistruction ❑ Wholesale ❑ Manufacturing Retail ❑ Transportation 0 Finance ❑ Service ❑ Other Where does your firm do most of it's business? ❑ Local ❑ Minnesota 0 National Twin Cities Metro Area ❑ Five State Area ❑ International How many employees at this location? ❑ 1-9 20-49 ❑ 100-249 ❑ 10-19 ❑ 50-99 ❑ 250+ Do you plan any changes in staffing in the next year? ,� 00 ❑ Add ❑ Remain about the same ❑ Reduce Yes- No Does your firm currently have enough space? L� ❑❑/ Are you considering moving or expanding? ❑ L`7 If Yes, in Arden Hills? ❑ ❑ What is your overall opinion of the community as a place to do busines ❑ Good ❑ Okay Poor Please describe ny situations in which the City of Arden Hills has not met your expectations: • �i.� e •1 2 __---. G' C ,d(- -t----al ti ‘Ker '. ./f,3-7--,kri-4e;'( --1- Is there a single local project or policy that might stand out as being something you would like to see initiated or changed? Please describe briefly: To Return: Please refold this survey with the City's address on the outside (tape/staple) \\1 4I V\ 0 \U \ • ��' 4GT When the CHIPS A R EDOWN, Try Services Pushed by a cool mainframe-computer market, Control Data Systems, the other Control Data Corporation spinoff, now applies its computer expertise to integrating networks and computer services. Will James Ousley be able to move the company in a new direction while still pleasing shareholders? B Y • K E V I N R E 1 C H A R D isiting Control Data Systems Arden because it represents a huge decrease in the and Ceridian],we knew it would be a long Hills facility is a little like walking number of CDS employees(although it does transition.Like any large undertaking,it's tak- 1through a ghost town.There's no stream represent a decrease).but that employees are ing us longer than we thought it would."says 7 sof visitors at the front desk,and a walk actually out in the field,dealing directly with Ousley.with a sigh."If I could do this over down an extremely long hallway yields few customers.That focus on customer concerns,he again.I would start this It)years ago." signs of life. It wasn't always this way—at its says.is at the heart of the new Control Data. "When they originally were spun off,the peak.more than 3.000 employees crammed this The new Control Data still is a work in feeling was that they could make that transi- facility,industriously plotting the future of corn- progress.however.While the gap is shrinking lion without a lot of pain,and they could turn pitting;today"less than a third of that number between where Control Data was and where this big ship around."says Clint Morrison"an work in the huge Arden Hills facility,and by Jim Ousley wants to take the company.it's still analyst with John G.Kinnard and Company of and large they perform administrative tasks. noticeable—and the time needed to narrow that Minneapolis."The reality has set in:the transi- The seeming depopulation is a sign of sue- gap has been longer than anyone anticipated. non can't he painless.It's going a little slower cess,says CDS president James E.Ousley.not -When we made the decision[to split CDS than they thought.and it's time to step up to • 4G-.- FEBRUARY 1995 TWIN CITIES BUSINESS MONTHLY ' PHOTOGRAPHY BY WARWICK GREEN �'� . ... te :�t " "� .. �v . : E . ,.- ....,,,-:-...y„;:.i:,7-,!5.,..T.::`,,:i.,_;;;:.7..,:::/i,.--.:::::.....:;::::-7.;,-,:7,_.,::::::.1.11,:-.7:"........0.7.:,:: . _�ti -' ;-.usk'st:).r.-. .0. fss:-'i 3,,'..• �3 srt sCr .•!v I ei _ W�� ` *Y �... .µk tl(.r 1- ... ._ ,... .... T . . _. .... . .. : ,..,,,,,,_t„.-.... ._ , , . ... ..:... . . , . _ _.„,.. ,.,.... . f I!,*x. ik. . fit' ++y..w,• y • :T7 e ` "Politics aside, Clinton.and Gore really took ! = ' E the idea of an information superhighway to heart, : and the marketplace is responding,"" ��• says James Ousley, president of Control'Data Systems ` it i "WE FACED A TOUGH TRANSITION IN CHANGING THE MINDSETS OF RESEARCH-AND-DEVELOPMENT ORGANIZATION , DOMINATED BY the plate to deal with the infrastructure and and Silicon Graphics to implement computer eluding one or more Baby Bells); make the changes that need changing." systems—big and small—for a variety of •downsizing in Europe(a traditional source What sort of changes?Those affecting the clients.CDS would sell expertise.not boxes. of strength),while concentrating operations in very essence of the business. France.Germany and Great Britain and ex- panding into the Pacific Rim. f the game plan sounds logical and Tamil- Eventually,Ousley foresees only 50 percent of o understand the need for change,one j iar,it should,because any number of revenues coming from North America,with 30 Tmust look at Control Data's origins. i large computer firms have mapped out the percent from Europe and 20 percent from Asia. Control Data Systems was created when — same path as they attempt to move with "'There's a lot of risk in this."Ousley says.For ontrol Data Corporation split into CDS the shifting currents of the computer world. example.a project in Russia has been approved. and Ceridian Corporation in August 1992.The Still,the seriousness of such a transition,espe- but there's no funding for it at the moment. smaller outfit of the two,CDS started out with sally among mature computer companies.can- "In the long term,deals overseas are essen- relatively little debt(about$3 million)and a not be overemphasized.Such larger companies tial for Control Data."Morrison says."Russia stable customer base. as IBM,DEC and Amdahl.have attempted to has a huge potential market,and it's important "We were the'other'company,"Ousley says. shift from hardware to services with varying ley- to be there now." "At the time,most people chose to go to Cerid- els of success. ian.We basically had to build a management In retrospect,the program wasn't as surcPcc- team from scratch. ful as Ousley and crew envisioned(he gives o single type of business can propel "Plus,we weren't exactly the family jewels. himself a B+grade for the plan,but only a C CDS into sustained sum-cc,but the You don't spin off the family jewels." for its execution).Cyber revenues still repre- company boasts a great deal of enthu- Although CDS's handicaps were down- sent 30 percent of CDS's profits.That reliance, siasm for what recently became a played when the dissolution took place,prob- Ousley says,causes concern within the invest- more-defined part of CDS's business plan: lems were evident to Ousley and anyone else went community,which regards CDS with the electronic messaging. with an inclination to look for them.Most were same skepticism as it did CDC."We carry a lot Essentially,electronic messaging is a more related to age:CDS's continued reliance on old of baggage from the past in the investment refined form of"having your computer call my — technology,centered around the Cyber line of community,"Ousley admits.The CDS stock computer."As the use of computers in the car- mainframe computers.and an aging workforce price hovers around$7 per share,even though porate world mushroomed,companies bought that saw the Cyber line as a way of life,not a CDS posted six consecutive profitable quarters all kinds and brands of computing systems,in- remnant of the past before announcing a$5 million loss in Octo- eluding IBM mainframes,DEC minicomputers "We faced a tough transition in changing the ber.(The 52-week high and low stock prices and UNIX-based networks.At one time,pro- mindsets of our employees—we needed to were$113/.and S5'/:as of December 9, 1994. viding communications between systems was change from a centralized research-and-devel- The market capitalization on that date was not much of a issue,because there seemed to opment organization.dominated by engineers, S79.4 million.) be little reason for a corporation to want to to a customer-oriented,end-user mentality," With S75 million in cash and virtually no communicate directly with another's computer Ousley says. "Now[the engineers]have to be debt,however,the firm,Ousley argues.is in system—much less another computer system involved with customer problems." better shape than the investment community within the company. Why would the financial The Cyber mainframe computer line is a di- thinks.In 1993.it turned a profit of$9.1 mil- folks want to use the data compiled by R&D? nosaur.Cyber computers demand a serious in- lion on revenues of$451 million. That compartmentalized way of thinking vestment of resources—both financial and hu- The response to the skepticism is yet anoth- now is obsolescent.Today,corporate-comput- man—to install and maintain when significantly er restructuring,one that further decreases de- ing designers emphasize"open systems."Open less expensive alternatives are available.Still.Cy- pendence on Cyber revenues and stresses systems might mean that every employee has ber-related revenues carried the firm after the CDS's commitments in a smaller number of the ability to send electronic mail to any other split,so it's not surprising that giving up those focused market segments. employee—no matter if the employee is across revenues would be akin to skipping a meal a day. "This restructuring is really critical to the fu- the building or across the world.Or it might Nonetheless,decreasing the emphasis on Lure of CDS."Morrison says. "If they pussy- mean that your IBM mainframe be able to those revenues is exactly what Ousley did after foot around,everyone will throw in their tow- communicate directly with your principle sup- an initial restructuring of CDS,one that corn- el.The bigger the better.The bigger and more plief's Hewlett-Packard minicomputer,in or- bitted layoffs with an overhaul of the entire significant the change,the better the invest- der to process purchasing and shipping infor- business. Instead of selling boxes—big and ment community will feel about it." nation using Electronic Data Interchange. small—CDS would be an:information Integra- At present.Ousley s plans for CDS include: When you hear about electronic mail and the tor," adding considerable value through ad- •working on its technological expertise Internet,you're hearing about the areas where vanced technological capabilities. Instead of through acquisitions and talent raids; CDS wants to be—on a very large scale. working with Cyber mainframes and related •firming up partnerships with strategic part- The company's track record in computer equipment,CDS would work with such yen- ners(Ousley is in discussions both here and in communications—in the heyday of main- don as Hewlett-Packard,Sun Microsystems Europe with telecommunications vendors.in- frames.a core Control Data strategy was en- 4B FEBRUARY 1995 TWIN CITIES BUSINESS MONTHLY OUR EMPLOYEES-WE NEEDED TO CHANGE FROM A CENTRALIZED ENGINEERS, TO A CUSTOMER-ORIENTED, END-USER MENTALITY." suring that its mainframes could communicate so much momentum in that area...."Ousley ad- myriad of businesses that William Norris had with mainframes from other manufacturers— mits."Politics aside,Clinton and Gore really tried to foster under the Control Data umbrel- led Minneapolis-based Honeywell to contract took the idea of an information superhighway la."In reality.I've been with LO companies with CDS to provide a global electronic mail to heart.and the marketplace is responding." within Control Data,"says Ousley. and messaging system."If you had polled the "1 think that it will end up being one good Today,it's rare that a 26-year employee of a team [planning the electronic-messaging sys- market for CDS to be in—but to maintain high-tech company would find himself in the tem) when we put out requests for proposals, their current revenues,they can't focus just on position of a Jim Ouster trying to turn around Control Data Systems would not have been that,"says Jeff Canin,an analyst with Salomon the company where he's spent his entire pro- one of the companies that they felt could do Brothers in San Francisco."If they can extend fessional life.In other situations,firms like the job."says Bill McGarry,Honeywell's man- that to other sectors, they can do quite well. IBM,DEC and Compaq found it necessary to ager of central information services.-Now that [Electronic messaging)as a model to follow is a bring in new personnel after the veteran em- work on the system is underway,we've been good one." ployees could not get the job done. very impressed with Control Data:They're CDS doesn't have the field to itself,however: Ousley readily acknowledges that his position been very responsive,and the product has competition from such companies as the inexpe- is unusual,yet he's clearly not worried about it. . worked as advertised." rienced but eager Baby Bells will appear with Ousley doesn't envision spending the rest of his The product is connectivity for 36.000 Hon- increasing frequency in the future.Within the life at CDS."I'm committed to three to five eywell workers scattered around the globe in larger system-integration field.CDS's competi- more years here—past that.I would say I'm not more than 90 countries. In addition.Control tion includes Electronic Data Systems.Arthur central to the formula."he says."I don't see Data Systems'designers have built in full con- Andersen.IBM,Hewlett-Packard and DEC. myself being around here when I'm 65." nectivity to the Internet.The task includes ty- 'The good news is that there's no single large If there is a Control Data Systems when he's ing together 22 different messaging systems competitor or two."Canin says."The bad news 65. With so much cash and an undervalued from various vendors,running on many differ- is that there's a ton of smaller competitors.I stock price.it's surprising that CDS isn't the eat hardware and software platforms. don't see CDS rising to the top of the heap,but target of some corporate raider,a fact of which Another part of the system is the communi- they can get a good amount of business." Ousley is all too aware:"i don't lose any sleep cations protocol X500 technology:rather than over someone coming in and selling the assets. being a specific computer program,X500 is but that's obviously an issue."Adds Morrison: similar to a standard like ISO 9000.Creating a hether the 48-year-old Jim Ous- "I certainly wouldn't rule out[a takeover). common directory of employees with X500 ley is the man to oversee yet anoth- This is a half-a-billion-dollar company with S60 technology is a monumental task when string- er restructuring(a favored strategy million to 70 million in assets and potentially ing together so many disparate common sys- to placate stockholders at the old Con- some hidden assets." terns.and in this embryonic field CDS has ex- trot Data Corporation.by the way)is a matter Morrison rates CDS as a"buy"(at least for perience with projects at University of Oregon. of some debate in the investment community. 1995).as does Salomon's Canin."There's not a Unilever and the University of Minnesota. Experience,usually so treasured in leadership lot of downside in what I see as the worst-case "That's been one of the keys to the system— circles-actually becomes a liability as a compa- scenario." Morrison says. "I'm convinced we felt that they supported the X500 imple- ny tries to change directions. there's a growing,viable company within Con- mentations better than other firms bidding on "Control Data needs to gain more investor trol Data." the project."McGarry says.'They have deliv- confidence in management."Kinnard's Morn- In the Twin Cities,even casual observers of ered on what they said they could." son says."They have yet to prove themselves Control Data Corporation and Control Data The Honeywell contract also stands out be- as an independent entity,and there are some Systems have been exposed to every bit of bad cause.instead of paying CDS to install hard- people cautiously looking at this management news possible:layoffs.failed ventures,consis- ware. Honeywell has contracted CDS to ad- team and saying,these guys grew up with Con- tently lowered expectations.total shutdowns of minister the network on an ongoing basis. In trol Data,and do they have what it takes to subsidiaries.That reputation.however.doesn't fact. most of the system's hardware is being make it in the real world? necessarily extend outside the state."Oddly purchased by Honeywell through other chan- "That's hanging over Control Data: Is Ous- enough, their reputation among their cus- nels. McGarry says it's the best business ley and this management team the right tomers is better than among stockholders." arrangement for Honeywell."This is a chang- group?" Canin says."The Control Data name carries ing and volatile environment."McGarry says. in many ways.Ousley epitomizes the Con- good will—they have a reputation based on re- "It's so much more advantageous to buy it as a trol Data employee—but a Control Data Cur- liability and what they've done in the past." service and get a set of skills from outside the poration employee.not a Control Data Sys- "It may he hard for us Minneapolitans to company,from someone who does it for a liv- tems employee.He's been with CDC and CDS believe." Morrison says."hut when you get ing.It's more cost-effective that having us do it for 26 years.having taken a sales position with outside of this town and to Europe.you see ourselves." CDC right after earning a bachelor's degree in that Control Data is well-respected." • It disturbs some observers that CDS seems to business administration from the University of have stumbled into the electronic-messaging- Nebraska. Working his way up the corporate Kevin Reichard writes for several computer' service arena."We didn't know there would be ladder,he made the obligatory stops at the industry publications.including PC Magazine. . TWIN-CITIES BUSINESS MONTHLY FEBRUARY 1995• 49 From:bcd/ori To: Mr.Brian Fritsinger Date:2/4/95 Time:14:32:44 ECONOMIC DEVELOPMENT UPDATE g1•u) ,... . »> EDAM finnesota Depa><tment of Trade < ;-. Economic Development Association Economic Development of Minnesota Contact:John Moon,612-854-6215 Contact Gene Goddard 612-297-1168 February 3. 1995 1-800-657-3858 Volume 2,No.6 Week In Review others. Between the third quarter 1991 Committee Deadlines: On Wednesday, February 1, the DTED - and fourth quarter 1993, DTED's'Business FridaComryittearch 311i- 12:00 - Midst night: b out st Business and Community Development Tracking System has identified 29 Division presented an overview of its Minnesota manufacturers that have moved of committee in house of origin. activities before the House International out of Minnesota and cited high taxes or Trade and Economic Development workers' comp. costs as a primary reason. Friday, April 7 - 12:00 Midnight: 2nd Committee Chaired by Rep. Jaros. The This group of large, medium and small Committee Deadline - Bills out of presentation focused on the structure of businesses employed more than 1,400 committee in the second house. the division, programmatic responsibilities workers in Minnesota before their move. Friday April 21 12:00 Midnight: 3rd and the department's performance measurement report. This number does not include businesses Committee Deadline - Omnibus in other industries, especially wholesaling Appropriations Bills out of policy DTED was followed by a discussion on and trucking, that have left the state. It committees. Minnesota's business climate by Bill also does not include businesses that have Blazer, Minnesota Chamber, and Wayne chosen to expand outside of Minnesota or Next Week Heating Schedule: Cox and Bernard Brommer of the AFL- were not able to expand at all because of Monday Feb. 6th: CIO. The Chamber discussed the high state-imposed costs. Finally, it does *House Labor Management Relations initiatives it's supporting, including not include the workers whose wages are (Chr. B. Johnson) 12:30 pm, 200 SOB: Worker's Comp. reform, C&I property tax lower than the otherwise would have been, H.F. 244 Establishing the governor's relief, maintaining the phaseout on the because their employers' labor costs were workforce development council; Replacement Equipment Sales Tax and inflated by state-imposed costs and taxes. Minimum Wage. * Senate agriculture and Rural reform for education and local government spending. Bill Introductions: Development (Chr. Bertram) 12:00 Tax Increment Financing CITE): noon, 107 Cap. PCA, DNR and Dept. The AFL-CIO argued Lhat Minnesota's The following TIF bills have been of Ag. on policy and procedures. healthy economy indicated that no reform introduced: H.F. 131 Increases maximum in worker's comp. is needed and that the amount of TIF for use in ethanol. Tuesday, Feb. 7th: money used Lc) phaseout the sales Lax on H.F. 147/S.F. 265 Restrictions on the use *House Commerce, Tourism & replacement equipment might be of TIF. H.F. 149 County approval of TIF Consumer Affairs (Chr. Sarna) 12:30 Eliminatingthe capon county pm, 10 SOB: Presentation by MN considered to be used to pay for education projects, Office of Tourism. They also cited DTED's Business contributions to local Economic * Senate Taxes and Tax Laws, Tracking Report and Advantage Development organizations. Subcommittee on Property Taxes (Chi. Minnesota's "Advance" newsletter as Local TIF Bills: 4:00 pm, 15 Ca supporting their position that all is well H.F. 821 S.F. 78 City of Springfield. Hottinger)local government:00responseCap. Discussion the with Minnesota's business climate, and jobs H.F. 100 City of Morris. are not fleeing the state. H.F. 186/S.F. 122 City of St. Louis Park. governor's budget proposals. H.F. 285 City of Windom. 9th: Feb y, a d hurs The DTED Business Tracking System S. F. 165 City of Hastings. Thursday, Jobs, Energy and Community identifies business births, deaths, S.F. 225 City of Hopkins. Development, Subcommittee on expansions and contractions for all De to ent(Chr. Chandler) 10 am, industries in Minnesota each quarter. The Workers Compensation p information is derived from the employer To date there have been 9 WC bills 107 Cap. Workers' Compensation. file of the State's unemployment insurance introduced in the House and 3 in the Information: lntormadon: system. It also independently tracks, by Senate. H.F. 144 GHeneral f orma ion: House: rotor adon: survey, the cause of death for the H.F. 18 Senate:296-0504 Senate:296-8086 approximately 60 to 200 manufacturing H.F. 69 H.F. 204 To pbn Copies of Bills:H.F. 234 businesses that go out of business each H.F. 81 House:612-296-2314 H.F. 91 Senate:296-2344 quarter. Possible causes of death include H.F. 85on ange of address,p c e k a h he S.F. 2_53 To ma number or fax financial failure, death or retirement of the H.F. 92 S.F. 96 Tum aa c contact Gene Gpon DIED owner and moving out of the state, among S.F. 254 Project Coordinator at 612-297-1168 or 1.800- 657-3858. Drafted by DIED. THE NANCEHIVELL GROUP Corporate Communication Consultants February 14, 1995 400 North First Street Suite 100 Minneapolis,Minnesota Brian Fritsinger 55401 Community Planning Coordinator 612.341.8003 City of Arden Hills fax 612. 340.1833 1450 West Highway 96 Arden Hills, MN 55112-5794 Dear Brian: Enclosed is our estimate and a sketch of the format we are recommending for the city marketing packet. As you and I discussed, we recommend a quality folder with a single pocket to hold two statistical inserts that will print in two colors. One insert would feature information related to our community, and the other insert would be a business profile. Each insert would be four pages and print in two colors. This format allows more flexibility in their use and a more cost effective solution for future updates and additions to the marketing package. The work produced by The Nancekivell Group would have much higher professional standard than the Moundsview brochure you shared with me. If your other estimate is based on the Moundsview quality, I presume our estimate is higher. We have kept our fees as low as possible because we are very interested in seeing a quality product produced for Arden Hills that creates an appropriate image and credibility. As I mentioned, Karen and I will be out of town until February 27th. This project should not take too long to complete once all of the copy and data is finalized. I hope we can help you and the Economic Development Committee with this project and that you will share our capabilities brochure with them. Sincerely, ames tancekivell P •dent Enc. • THE NANCEXI'JELL GROUP February 13, 1995 PROJECT DESCRIPTION City of Arden Hills Economic Development/Marketing Brochure Proposed Format: We would recommend producing a one-pocket folder which would house two four-page statistical inserts, two-color, two-sided. Typographic treatment on the cover to be two-color with varnish, inside front cover could include an intro statement/welcome. • Four-Page Community Profile Insert Population-by race, growth, sex/age Quality of Life - crime stats, medical facilities,recreation Education-school profiles Housing-household growth, occupancy,rent, home values and positioning copy on quality of life • Four-Page Business Profile Insert Labor Force and Wages Taxes Area Businesses/Retail Sales Utilities/Transportation/Area Accomodations Facilities Business Assistance . . THE NANCEKIVELL GROUP t.ktA, 1,' ,„.•,_, 4 .., I a trf/ I r 11,,0/.-- Li 1)12•••" 1 -...1 • .•-141,46) • ..."1-5 .....-- ._, ---: ---- , — , .... 1 - 60441*A4 ____________ — 1 — 'Rce0;1144 I--- Li ......_ __ .. 1 -_-________......._ _,..... ...• 141 .: q _ . -........., 46 t!o v1 it....... i wwi, bre i-c, p '). _ _ /Dr" • r I i , . I li--' 1 aftie, re 1 : „.„... • .k2/' *'`'''' - /1-5 tor 07. to crt 7.&4...r.............,==..-_____1. „.,• 4'.- f f;44+ iv 11‘‘I/A. P se 1 rl ...s.. ........ .. .. "'..'".. -Pelm--- 4-ove4'' -....- I 1 THE NANGERIVELL GROUP CwporateCotntnuniation Consultants ESTIMATE 95164.AH 400 North First Street Suite 100 Date February 13, 1995 Minneapolis,Minnesota Attention Brian Fritsinger 55401 Company/Client City of Arden Hills 612.341.8003 Job Title/Job Economic Development/Marketing Packet fax 612.340. 1833 DESIGN/PRODUCTION Planning/Review $160 Design/Layout 960 Design/Charts use existing formats Keylining 140 Printing Supervision pre-press only 160 Typesetting charts, tables & text 1,200 MATERIALS Comping Material $100 Messenger Service 20 Laser Prints 20 Printing 3,700 Total $6,460 Economic Development Committee Meeting Minutes January 19, 1995 8:00 a.m. Army Reserve Center 1 . The meeting was called to order at 8 :09 a.m. 2 . Present were, Dan McCallum, Robb Carlson, Jr. , Steve Freimuth, Mary Miller, Terry Nagle and Ray McGraw. 3 . Marketing Packet Mary Miller read minutes from December Meeting and was approved. Rob Carlson read notes from Brian Fritsinger on updated Marketing Packet . Ray McGraw was given a quick update on the Marketing Packet . Steve Freimuth commented that Mayor' s letter should be on the page ' s of the brochure and not on the inside cover. Everyone decided we should get another bid on the brochure, an Arden Hills company if possible . Mary Miller and Dan McCallum will work on the Quality of Life Section. Steve Freimuth said part of Lake Josephine is part of Arden Hills so we have two parks? No mention of Mounds View High School in brochure . Miscellaneous Dynamark showed interest in building two sites in Arden Hills, we will continue to stay updated. Six (6) new companies have shown interest in Arden Hill , interest in Arden Hills is heating up ! Everest has asked for a 60 day extension, Bev will be meeting with them on January 19th, 1995 . Amoco has reached agreement on easement with doctor' s office . Terry and Ray both agreed that TCAAP is something we should stay in touch with, Ray will keep us updated. BF\jt