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IEDC Agenda 01-15-2013AGENDA MONTICELLOINDUSTRIAL&ECONOMICDEVELOPMENTCOMMITTEE Tuesday,January15,2013 7:00a.m.,BoomIsland MEMBERS:ChairLukeDahlheimer,ViceChairJoniPawelk,RichHarris,PatrickThompson,BillTapper, DickVanAllen,DanOlson,ZonaGutzwiller,WayneElam,JimJohnson,ChrisKruse,Don Roberts,andWesOlson LIASIONS:SandySuchy,Chamber ClintHerbst,Mayor GlenPosusta,CityCouncil 1.CalltoOrder 2.Considerationtoappoint2013officers 3.ApproveMinutes: a.October2nd,2012 4.ConsiderationofaddingitemstotheAgenda 5.Reports: a.EconomicDevelopmentReport b.CityCouncil c.ChamberofCommerceandIndustry d.TAC 6.ConsiderationtoreviewandreviseasnecessarytheIEDCMissionStatement 7.Considerationof2013IEDCWorkplan a.OngoingEfforts ConciergeProgram GrowMN BusinessRecognition b.FocusedProjects ComprehensivePlanUpdate TransportationAdvisoryCommittee SupportingEfforts:RestoreingDowntown,BertramChainofLakes Other c.Communications EconomicDevelopmentWebsite Enews Cityresources 8.Considerationtoappointnewmembers 9.Adjournment.(9:00am) MINUTES MONTICELLOINDUSTRIAL&ECONOMICDEVELOPMENTCOMMITTEE(IEDC) Tuesday,October2,2012-7:00a.m.,BoomIslandRoom MEMBERSPRESENT:ViceChairJoniPawelk,PatrickThompson,BillTapper,Dan Olson,ZonaGutzwiller,WayneElam,JimJohnson MEMBERSABSENT:ChairLukeDahlheimer,RichHarris,DickVanAllen,Chris Kruse,DonRoberts,WesOlson LIAISONSPRESENT:GlenPosusta,CityCouncil ClintHerbst,Mayor LIAISONSABSENT:SandySuchy,Chamber STAFFPRESENT:AngelaSchumann,CommunityDevelopmentDirector,Jeff O’Neill,CityAdministrator 1.CalltoOrder ViceChairJoniPawelkcalledthemeetingtoorderat7:00a.m. 2.ApproveMinutes BILLTAPPERMOVEDTOAPPROVETHEAUGUST7,2012MINUTES. PATRICKTHOMPSONSECONDEDTHEMOTION.MOTIONCARRIED7-0. 3.Considerationofaddingitemstotheagenda None 4.Reports a)EconomicDevelopmentReport TIFKnock-downAnalysis –AngelaSchumannreportedthattheEDAwasinthemidst ofaknock-downanalysisforTIFDistrict1-22,whichwouldprovidetheEDAwith informationonavailableincrementwithwhichtoaccomplishredevelopmentinthe downtownarea.Theknock-downanalysiswillindicatewhichparcelsarestillin1-22 andthereforehowmuchincrementisavailableandmaybeusedbasedontheTIFlaws associatedwiththedistrict.Oncethatinformationisinhand,theEDAcanprioritize projects. Fred’sAuto-TheEDA’sinvestigationcontractorwascompletingworkontheLimited ScopeInvestigation,whichwastriggeredwhenthePhaseIIEnvironmentalAnalysis IEDCMinutes10/02/12 2 revealedapetroleumleakonthesite. Oncecomplete,theLSIwillbesubmittedtotheMPCA.TheMPCAwilldetermine whethercontaminationclean-upisnecessary,orwhethertheprojectfileonFred’scan beclosed.Ifclean-upisrequired,staffwillbegintheprocessofdeterminingthenext steps,whicharelikelytoincludeanotherroundofRFPsforserviceontheclean-up. Theclean-up,ifitresulteddirectlyfromanundergroundstoragetankleak,canbe reimbursedthroughtheDepartmentofCommerce’sPetrofund. Ifclean-upisrequired,staffwillberequestingthattheservicesforthesiteincludethe locationoftheexistingundergroundstoragetanks.Thatcomponentwasnotincludedin theLSI.TheCitywillneedtoknowwhereanyandallundergroundstoragetanksareon thesite,howlargetheyareandwhatthetankscontain.Anytanksthatceasedtobeused priorto1987canberemovedwithoutcosttotheCity/EDAthroughthePetrofund AbandonedTankprogram. 7th Street -SchumannstatedtheCityisresearchingtheopportunitytofund7th Street connectionimprovementsthroughtheuseofincrementintheexpiringTIFDistrict1-5. Thedistrictexpiresattheendof2012,andnootherprojecthasdevelopedintimeto utilizetheexcessincrement.Ifunused,theincrementisreturnedtothetaxing jurisdictionsandtheCitywouldonlyreceiveapproximately40%oftheavailablefunds foruse.Asthecompletionofthe7th StreetcorridorbetweenMinnesotaandElmStreets wouldpotentiallyspurdevelopmentinthatareaandprovideanimportantrouteinand outofthedowntown,staffwillbeaskingtheEDAtoconsiderallocatingthefullamount ofincrementfromTIF1-5tothe7th Streetproject.BecauseTIF1-5isapre-1987 district,theavailableincrementusesarebroaderthandistrictscreatedlater. EconomicDevelopmentDirectorPosition -Schumannnotedthatstaffhadpreparedan initialEconomicDevelopmentpositionoutlinewhichhadbeensharedwiththe PersonnelCommittee.ThePersonnelCommitteeaskedstafftoprepareaformaljob descriptionfortheirreviewbasedontherecommendationstaffpresented.Staffwill keeptheIEDCpostedasactionprogressesonthisitem. b)CityCouncil Budget–Thepreliminarybudgetlevyhasbeensetandwillbereviewedatthepublic hearinginDecember.Thelevyislessthanaonepercentincreaseoverlastyear’slevy. MYSA–TheMinnesotaYouthSoccerAssociation(MYSA)membershipwillvoteon theproposaltopurchasepropertynorthofBertramParkonNovember3rd.Thesizeof projecthasexpandedfrom8to16fieldsinanefforttoattractnationaltournaments. ThisexceedstheamountoflandreadilyavailableandwouldrequirethattheCity acceleratestepstoupgradeandexpandtheWasteWaterTreatmentFacility(WWTF) IEDCMinutes10/02/12 3 whichcurrentlyutilizesthepropertyasasludgefarm.Thecostofpreparingadditional fieldswouldalsoneedtobenegotiatedwiththeMYSA. WWTF–CityCouncilwillholdapublichearingtoconsidermodificationstothe WWTF.Thesechangeswouldallowforbiosolidstobedriedto16%sothatmaterial couldbelandfilledratherthanappliedontheland.Thecosttocompletethefirstphase oftheprojectwouldbe$1.8million;thefullcostoftheprojectisestimatedtobe$6 million. FallonAveOverpass –TheFallonAvenueOverpassisnotyetinthedesignstage.City EngineerBruceWestbyhasbeenmeetingwithadjoininglandownersaboutthe proposals.StaffwillaskthatWestbyprovideanupdateatthenextIEDCmeeting. FinancialPosition –AlthoughMonticelloisstillratedalowriskforinvestors,Moody’s recentlyevaluatedtheCity’scurrentfinancialpositionanddecreaseditsratingby3 basispoints.ThismeansthattheCitywillpay$3,000moreperyearininterestonevery milliondollarsborrowed. c)ChamberofCommerceandIndustry TheChamberheldCandidateForumsandMeetandGreetopportunitiesrelatedtothe election.Chamberstaffhasalsobeengatheringinformationtocreateacurrentland leasedatabase.TheCitywillutilizethisresourceinpreparingresponsestoleads.The BusinessExpoisscheduledforFriday,October5thfrom4-8p.m.attheMCC. d)reStoreingDowntown-Staffhandedoutmaterialsrelatedtothisproject. 5.ConciergeTeam a)BreakfastwithMayor/Administrator Karlsburger–Karlsburgerdeclinedtheoffertoscheduleabreakfastmeetingcitingthat theycurrentlyhadnospecificbusinessconcerns. CornerstoneChevrolet–Staffplantoscheduleanupcomingbreakfastmeetingat CornerstoneChevrolet.Cornerstonehadsubmittedaplanningapplicationrelatedto movingitsoperationstotheoldFordsite.Theyaskedtobereleasedfromtheexisting PUDwithWestMetroandwouldliketoestablishaseparatePUDandrequestasignage planwhichvariesfromtheordinance.ThePlanningCommissionwillconsiderthis requestattheupcomingmeeting. IEDCMinutes10/02/12 4 b)SiteVisits MidwestPrecisionMachining –Midwestwillhostatourat9:30a.m.onMonday, November19th. WalkerInStore –Walkercancelledtheirscheduledsitevisitduetocontinuingoffice remodelingattheirfacility. 6.ConsiderationofnominationandawardforIndustryoftheYear SuburbanManufacturingandCargillKitchenSolutionswerebothnominatedforthe2012 IndustryoftheYearaward.AlthoughCargillKitchenSolutionshadreceivedthe Chamber’sBusinessoftheYearawardin2009,neitherbusinesshadwontheIEDCaward inthepast.TheawardbreakfastisscheduledforWednesday,October24th at7:30a.m.at theMCC. WAYNEELAMMOVEDTONOMINATESUBURBANMANUFACTURINGFOR THE2012INDUSTRYOFTHEYEARAWARD.MOTIONFAILEDDUETOLACK OFASECOND. Therewassomeconcernaboutthelackofdiscussionpriortothemotionanditwas suggestedthat,inthefuture,theIEDCmaywanttotourthefacilitiesofthenominated businesses.Staffalsonotedthatselectioncriteriahadbeenprovided. TheIEDCdiscussedthequalificationsofeachnominee.Allagreedthateachbusinesshas beenanassettoMonticellothrough2012.TherewassomeconsiderationofSuburban Manufacturing’sexpansioninthecommunityaswellascommentsaboutCargillKitchen Solutions’ongoingcommitmenttothecommunity.FourIEDCmembersvotedforCargill andthreevotedforSuburbanManufacturing. 7.ItemsAddedtotheAgenda a)HighDensityHousing -ThePlanningCommissionwillconsiderzoningoptions relatedtoaddressinghighhousingdensityneedsatitsupcomingmeeting.Options includeamendingtheR-3Districttoprovidespecificdesigncriteriaandperformance standards,andprovidingadditionaldiscretionthroughthecreationofanR-4District. Muchofthemulti-familyhousingstockintheCityisaginganddoesn’tmeetcurrent amenityneeds. b)NovemberIEDCmeeting –TheNovemberIEDCmeetingwillberescheduledfor Wednesday,November7th duetotherequirementthatpublicmeetingscannotbeheld onElectionDay. c)UpdateonComprehensivePlanreview –Staffwillscheduleameetingdateandprovide IEDCMinutes10/02/12 5 backgrounddataforsubcommitteereviewandconsiderationoftheEconomic DevelopmentchapteroftheCompPlan. d)STEMprogramtours –SchoolSuperintendentJimJohnsonwillscheduletoursofthe schooldistrict’sScience,Technology,EngineeringandMathprograminNovemberor December. 8.Adjournment PATRICKTHOMPSONMOVEDTOADJOURNTHEMEETINGAT7:45AM. BILLTAPPERSECONDEDTHEMOTION.MOTIONCARRIED7-0. Recorder:KerryT.Burri__ Approved:January8,2013 Attest:_______________________________________________ AngelaSchumann,CommunityDevelopmentDirector IEDCAgenda–01/15/13 2.Considerationtoappoint2013officers.(AS) A.REFERENCEANDBACKGROUND: TheIEDC’sOrganizationalandMembershipGuidelinesrequirestheelectionofa Chairperson,ViceChairpersonandSecretaryeachyearattheJanuarymeetingofthe IEDC. Theguidelinesallowfortheofficerstoserveintheirpositionforuptothreeyears. Traditionally,theIEDChasappointedtheofficersinasingle-yearsuccession,withthe ViceChairmovingtotheChairposition. LukeDahlheimeristhecurrentChairpersonoftheIEDC.JoniPawelkisthecurrentVice Chairperson.ACitystaffpersonhasactedasthecommittee’sSecretaryinpastyears. B.ALTERNATIVEACTIONS: 1.Motiontoappoint_________________asChairperson,_________________as ViceChairpersonand__________________asSecretaryoftheMonticelloIEDC for2013. C.STAFFRECOMMENDATION: None. D.SUPPORTINGDATA: None. IEDCAgenda–01/15/13 6.ConsiderationtoreviewandreviseasnecessarytheIEDCMissionStatement(AS) A.REFERENCEANDBACKGROUND: TheIEDCisaskedtoconsideritscurrentmissionstatementinrelationshiptothedesired directionandpurposeofthecommittee.Thecurrentmissionstatementwasadoptedwith theIEDC’sre-organizationasaformalCitycommitteein2008.AcopyoftheIEDC’s enablingresolutionisattachedforreference. TheIEDCisalsoaskedtoconsideritsmissionincomparisontothemissionstatements ofothercloselyalignedCityornon-profitorganizations.TheseincludetheEconomic Developmentauthority,ChamberofCommerce&Industry,PlanningCommissionand TransportationAdvisoryCommittee. Tofacilitatediscussion,staffhasalsopreparedthreedraftmissionstatements,eachof whichfocusesonadifferentaspectofworkIEDChaspreviouslybeeninvolvedwith. Twoofthethreerelatedirectlyto“projects”identifiedbytherecentBusinessRetention &Expansionstudy. CurrentIEDCMissionStatement:Toincreasethetaxbaseandthenumberofliveable wage-leveljobsinMonticellobypromotingindustrialandeconomicgrowthandworking tomaintainadesirablebusinessenvironment. DraftIEDCMissionStatements: Focus:Advocacy TheMonticelloIEDCwillpromoteandadvocateforindustrialandeconomicgrowthin Monticellobyinfluencingandrecommendingpolicieswhichwillmaintainadesirable businessenvironmenttotheCityofMonticelloandotherapplicableagencies. Focus:Businessretentionandexpansion TheMonticelloIEDCwillworkwithprospectsandexistingbusinesstosupport expansionandretentionbyactingasaforumfortheexchangeofinformationontraining opportunities,technologicalandeconomictrends,andworkforceissues. Focus:Communicationsandoutreach TheMonticelloIEDCwillimprovecommunicationsamongthebusinesscommunity,the city,andthegeneralpublic.byactingasaconciergeforthebusinesscommunity– promotingandraisingawarenessaboutMonticello’sbusinesssectorandconsolidating andconveyinginformationonavailableresourcesforthebusinesscommunity. IEDCAgenda–01/15/13 Indiscussingtheabove,theIEDCmayalsowishtoconsiderhowthese“focus”rolesare filledbyothercommunity/Cityboardsandorganizations,orwhethergapsintheseareas exist.Aspartofthatconsideration,theIEDCmaydeterminethatthebestroleforits membersistoplayastronger,moreactiveroleinthosegroups. WhiletheIEDCmayultimatelydeterminethatthecurrentmissionstatementservesthe committeeadequately,thegoalofthisexerciseistoencourageanactivediscussion regardingthegroup’svisionforthecommitteegoingforwardandguidethefocusofits activities. B.ALTERNATIVEACTIONS: 1.MotiontoapprovearevisedmissionstatementasdirectedbytheIEDCandto directstafftoprepareanamendmenttotheIEDC’sEnablingResolution. 2.Motionofnoaction. C.STAFFRECOMMENDATION: StaffwilldefertotheIEDC’sdiscussionoutcomeforthepossiblerevisionofthemission statement. D.SUPPORTINGDATA: A.IEDCEnablingResolution B.BusinessExpansion&RetentionExecutiveSummary C.MissionStatementsforotherMonticelloOrganizations Monticello Business Retention and Expansion Strategies Program Summary Report January 2011 Written by: Brigid Tuck University of Minnesota Extension Center for Community Vitality For more information about the Monticello BR&E Program contact: Megan Barnett-Livgard City of Monticello (763) 271-3208 Megan.Barnett@ci.monticello.mn.us Or Adeel Ahmed Extension Educator in Community Economics University of Minnesota Extension (320) 203-6109 ahme0004@umn.edu 1 Monticello Business Retention and Expansion Program Communities recognize that helping existing businesses to survive and grow is a vital economic development strategy. The Monticello Business Retention and Expansion Program (BR&E) is designed to assist Monticello’s businesses in thriving and expanding. While the attraction of new businesses and new business start-ups are important components of any economic development strategy, research has shown that forty to eighty percent of new jobs are created by existing businesses rather than by new businesses. The Monticello BR&E Program is a comprehensive and coordinated approach to assisting existing businesses. Visiting current businesses and learning their concerns is only one component of the process. The BR&E program builds awareness of issues that face businesses and builds capacity for the community to address these issues. The program assists local leaders and community members in working together to provide solutions to business concerns. Objectives The Monticello BR&E Program has five objectives: 1. To demonstrate support for local businesses 2. To help solve immediate business concerns. 3. To increase local businesses’ ability to compete in the global economy 4. To establish and implement a strategic plan for economic development. 5. To build community capacity to sustain growth and development. Sponsorship The Monticello BR&E Program is coordinated locally by the following organizations: City of Monticello, Monticello Chamber of Commerce and Industry, the Minnesota Department of Employment and Economic Development, and University of Minnesota Extension. The Monticello BR&E Program is sponsored by the following organizations: FiberNet Monticello, Xcel Energy, Initiative Foundation, Monticello Chamber of Commerce and Industry, Monticello EDA, RiverWood Bank, Dahlheimer Beverage, Cub Foods, Cargill Kitchen Solutions, Schlenner Wenner & Company, TDS Telecom, Karlsburger Foods Incorporated, Standard Iron, and Integrated Recycling Technologies. BR&E History The City of Monticello began organizing to apply for the University of Minnesota Business Retention and Expansion program in fall of 2009. Monticello applied for and was accepted into the program in November 2009. The leadership team held its first training meeting on January 28, 2010. Business Visits The leadership team assembled a comprehensive list of businesses in Monticello using available databases including the Economic Development Authority, the Chamber of Commerce, InfoUSA, and D&B Million Dollar. The final business list contained approximately 500 businesses. From this list, the leadership team selected 102 businesses. The leadership team 2 put an emphasis on manufacturing businesses, businesses considered to be of relative importance to the business community, and businesses which were deemed likely to participate in the BR&E interview process. This approach to sampling is known as a “convenience sample”, typical of many BR&E programs. It is not statistically representative of the greater business population yet represents the businesses that were interviewed. Businesses were visited from April 6th to July 1st, 2010. Two members of the task force visited each business. In total, 60 businesses completed the BR&E survey and visitation. Warning Flag Review The leadership team held a series of warning flag review sessions. The sessions were held on May 4, 2010, June 2, 2010 and June 30, 2010. During each session, the leadership team reviewed each survey to find issues that needed to be addressed immediately. No major warning flags were uncovered but smaller issues did include requests for information regarding OSHA rules, financing information, and commercial recycling. State Research Review After the surveys were completed, they were forwarded to University of Minnesota Extension for data entry and tabulation. The results were then shared with a panel of economic development professionals, University of Minnesota faculty, and task force members at the state research review. Conduced on July 12, 2009, the state research review team examined the survey results for strengths, weaknesses, opportunities, and threats. The review team then suggested projects the task force may want to consider to address identified issues. Research Report Development Following the state research review, a research report was prepared. The research report presented four overarching strategies the Monticello BR&E Task Force could consider adopting to address general issues reported by the businesses. Under each of these strategies, the report provided a list of potential projects based on the suggestions of the state research review team. Task Force Retreat A five-hour Monticello BR&E Task Force retreat was held on September 28, 2010 in Monticello, Minnesota. At this retreat, the task force was presented the research report. The presentation included an overview of demographic and economic changes and trends in the community and county, the composite results of the business surveys, and the four strategies. The task force reviewed and discussed the written potential projects and developed a few new potential projects. In the end, the task force established and adapted four priority projects. These priority projects are featured in this report. If you have ideas, time, or other talents to contribute to these projects, then please contact one of the people listed. People in the Monticello BR&E Program Leadership Team The BR&E leadership team is responsible for the overall coordination of the program and also participates fully in the program. The leadership team is as follows: 3 Overall Coordinators - Megan Barnett-Livgard, City of Monticello and Sandy Suchy, Monticello Chamber of Commerce and Industry Business Resource Coordinators – Kevan Sorenson, RiverW ood Bank and Kurt Zweifel, Cargill Kitchen Solutions Milestone Meeting Coordinator – Joni Pawlek, New River Hospital Visitation Coordinators – Brad Durfee, Department of Employment and Economic Development, Chris Kruse, Edward Jones, and Tim Zipoy, Minnesota Workforce Center Media Coordinators – Rachel Wernsing, Monticello Chamber of Commerce and Industry and Terri Sweet, Monticello Times Monticello BR&E Task Force Many community leaders participated as task force members. This group addressed warning flag issues, set priorities for action, and will assist in implementing the chosen projects. Task force members (listed below) also participated in business visits. Michelle Hertwig, Majirs Advertising John Belde, Belde Chiropractor Scott Bosacker, Verizon Wireless Mark Branson, Schlener Wenner Luke Dahlheimer, Dahlheimer Distribution Brett DeMarais, FiberNet Monticello Bill Demeules, Standard Iron Ann Dragsten, Healing Ground Rod Dragsten, Dragsten Development Heather Eidem, New River Medical Wayne Elam, Commercial Real Estate Solutions Nancy Friesen, New River Medical Amanda Galindo, Colonial Life Kraig Gunwall, IRT Zona Gutzwiller, Premier Bank Rich Harris, Midwest Precision Jim Johnson, School Jason Kallevig, Kaltec Noel LaBine, Wright County Partnership Mike Maher, Karlsburger Mari Lou McCormic, Riverwood Bank Joel Meyer, Walmart Dan Olson, State Farm Ins. Wes Olson, Wes Olson Electric Don Roberts, Cargill Bill Seefeldt, Electro Industries Marshall Smith, Hospital Adam Stolpestad, Resident / Graduate Student Bill Tapper, Westlund Distributing Laurie Tennessen, Vonhansen Meats Dick Van Allen, IEDC Anthony Velishek, Foster Carlson & White Tony Wernsing, Verizon Wireless Businesses Visited Sixty businesses were visited as part of the Monticello BR&E Program. The community greatly appreciates their willingness to help the community understand their needs. Their survey responses are confidential yet it is important to credit their participation by listing their names here. A Glorious Church Action Plus Temporary Service Agosto Law Office American Family Insurance 4 Anytime Fitness BBF Properties Belde Chiropractic Best Western/ Chin Yuen Bondhus Corporation Bullseye Properties Cargill Kitchen Solutions Caribou Coffee Central Minnesota Jobs Conroy Law Office, LTD Cornerstone Cafe & Catering Co. Cub Foods Monticello Dahlheimer Distributing Company, Inc. Dragsten Development Electro Industries, Inc. Fastenal Co First Minnesota Bank Foster, Carlson & White Agency Gartner's Card & Gift Shop Inc General Rental Genereux Fine Wood Products Gould Chevrolet Hoglund Bus and Truck Co. Integrated Recycling Technology Kaltec Technology Center Karlsburger Foods, Inc. Kwik Trip Little Caesers Pizza Loch Jewelers, Inc. MAJIRS! Advertising and Design Martie's Farm Service, Inc. Midwest Precision Machining Mississippi Shores MN Northland Real Estate, Inc. Monti 4 Theatre (Monticello Theatre) Monticello Country Club Moon Motorsports New River Medical Center Premier Bank of Monticello River City Extreme Schlenner Wenner & Co. Schluender Construction, Inc. SMA Elevator Construction Co. Smith, Paulson, O'Donnell & Associates St. Benedict's Senior Community Standard Iron & Wire Works Suburban machine Company. Sweet Dreams Mattresses TDS Telecom Tire Service Eq Mfg Co (TSI) Twin City Die Castings Co. UMC VonHanson's Meats Walmart Washburn Computer Group Consultant Adeel Ahmed, University of Minnesota Extension, served as the BR&E consultant for the Monticello BR&E Program. This included coaching and advising the local leadership team, conducting volunteer visitor training with the task force, assisting the leadership team in business selection, facilitating the warning flag review meetings, and participating in the state review panel. State Research Review Panel The panel reviewed the tabulated survey results and suggested potential actions that might be taken by Monticello business and community leaders in response to local business concerns. The participants of the July 12th, 2010 meeting were: Minnesota Department of Employment and Economic Development: Diane Knutson, Business Development Rachel Vilsack, Labor Market University of Minnesota Extension Center for Community Vitality: 5 Adeel Ahmed, Regional Educator Lisa Brownstein, Support Staff Michael Darger, Program Leader Denise Trudeau, Leadership Development Specialist University of Minnesota: Kent Gustafson, Tourism Center Elton Mykerezi, Applied Economics Ward Nefsted, Applied Economics Monticello Task Force: Megan Barnett, City of Monticello Brad Durfee, Department of Employment and Economic Development Joni Pawlek, New River Hospital Don Roberts, Cargill Kurt Zweifel, Cargill Kitchen Solutions Other: Noel LaBine, Wright County Economic Development Partnership Monticello Economic and Demographic Profile An economic and demographic profile of the City of Monticello and Wright County was prepared for the research report and presented at the Monticello BR&E Task Force Retreat on September 28, 2010. The profile was written by Rachel Vilsack of the Minnesota Department of Employment and Economic Development. The profile contains statistics on population, employment, income, commuting means, and educational attainment. A full copy of the profile can be viewed in the research report which is available from Megan Barnett with the City of Monticello. Monticello BR&E Survey Results Following are the results of the survey of the 60 businesses visited. The businesses’ characteristics are summarized first followed by priority projects selected by the task force. Survey results related to those projects are included in this summary. Additional survey results including four strategic themes are in the research report. Characteristics of Businesses Visited Seventy-eight percent of the visited businesses are locally owned and operated. Forty-two percent of businesses have more than one location. The majority of those other locations are in Minnesota and the Midwest, with a small number of far- ranging businesses. Businesses were asked to indicate which industry category best described their business. Twenty percent of businesses indicated they were involved in manufacturing, 18 percent in retail trade, 13 percent in “other services,” and 13 percent in “other.” “Finance, Insurance and Real Estate” was also a common category, at 12 percent. The businesses visited in Monticello employ a total of 1,666 full-time employees and 975 part-time employees. The businesses employ a trimmed mean (or trimmed average) of 15.38 full-time employees, slightly down from 15.52 three years ago. The trimmed average number of current part-time employees is 7.76, up from 6.96 per firm three years ago. Seasonal employment is up from three years ago (80 currently; 72 previously), while the trimmed average number of seasonal employees per firm is down slightly (2.85 currently; 3.38 previously). Total 6 0 50 100 150 200 250 300 350 400 450 500 Construction Agriculture Tourism/Rec. Svcs. Finance & Insurance Trans. & Utilities Other Other Services Wholesale Trade Medical Retail Trade Food & Beverage Manufacturing Chart 1. Current Employment by Industry for Surveyed Monticello Businesses Full Time Part Time employment by industry category is displayed in Chart 1. The median starting wage for all the businesses ranges from $8.50 an hour for youth employees to $28.00 an hour for professional and management employees. For unskilled workers, the median starting wage is $10.00 an hour. These rates translate into weekly starting wages for full-time employees of $340 for unskilled workers to $1,120 for professional and management employees. None of the Options Expanding at this Location Expanding at another location Selling Downsizing Merging Moving 0 5 10 15 20 25 30 Chart 2: Future Plans? 7 Businesses in Monticello are remaining fairly stable, with about half expecting some type of change. It is excellent news that zero businesses reported plans to close. Thirty percent of businesses are considering expanding either at their current location or by adding another location. See Chart 2. With half of businesses expecting some type of change, use of business retention and expansion strategies is clearly warranted, but results indicate no cause for distress. Monticello BR&E Priority Projects The following four priority projects were selected at the task force retreat held in Monticello on September 28, 2010: Priority Project #1: Business Concierge Service Ideally, businesses have access to workers with the right skills and the right attitude, and use the most effective recruitment and training methods. Related Survey Results Monticello had a mix of strong and moderate survey results regarding labor force availability and productivity. The attitude and productivity of existing employees were rated fairly high in the survey. Both factors received above average ratings, with “attitude toward work” garnering a 4.43 average score and “productivity” a 4.37 average score (on a scale where 5 equals “excellent” and 1 equals “poor”). However, when asked separately for the source of problems in recruiting employees, “poor work attitudes” was the most common response after “other”. Businesses reported plans to expand in the next three years. The most listed categories for expected labor increases were unskilled labor (23 percent) and sales (20 percent). See Chart 3. Businesses were further asked to consider a list of options and select training options that were needed, but 0 5 10 15 20 25 Other Information Technology Engineers Temporary/Contract Employees Youth Employees Clerical/Secretarial Skilled Labor Professional/Management Sales Unskilled Labor Chart 3: Types of Employees Expected to Be Hired in Next Three Years 8 not already provided. The areas of needed training include both technical skills and relational skills such as management, interpersonal communication, and customer service. While recruitment itself does not appear to be causing problems for Monticello, some of the reasons businesses provided for their recruiting problems may be cause for concern. The most common answer, “other”, encompassed written-in explanations that included cuts in educational programs that trained employees with a specific skill set, job applicants with inadequate labor skills, and a tough economy. Project Plans from the Committee: The goal of this project is to promote and raise awareness of the wealth of labor force and other applicable existing resources available to businesses in Monticello. The project team plans to create a “one-stop shop” location for businesses offering concierge services for meeting rooms, education, jobs, and training. The service will aim to improve communications among the business community, the city, and the general public. The team plans to begin the project by inventorying resources and services already available to businesses. The information will then be consolidated and published on a website and in a resource book. A survey is also planned. This committee will be led by Michelle Hertwig, Tim Zipoy, Kurt Zweifel, Brad Durfee, Chris Kruse, and Sandy Suchy. Please contact one of the committee members if you would like to become involved in this project. Priority Project #2: Improve Transportation Infrastructure As a river crossing city in a region that has experienced significant growth in the past fifty years, Monticello has the need for infrastructure upgrades to match its increased size. Efforts are underway to meet these needs through a number of road projects. Related Survey Results Survey results clearly and repeatedly made the point that businesses are 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 Highway Accessibility Proximity to Major Markets Proximity to Service Suppliers Proximity to Raw Materials Railroad Service Accessibility to Major Airport Local Airport Chart 4: Ratings of Transportation-Related Factors Compared to Competitors 9 frustrated with traffic flow issues. It is clear options are needed to connect the needs of the business community to infrastructure planning, as well as methods for helping businesses in overcoming road construction challenges. When asked to pick three sample initiatives which would increase a business’ probability of expanding their business in Monticello, the two top answers related to infrastructure. “Bridge over river” was selected by thirty-seven percent of businesses and “Expansion of I-94 (3rd lane) was selected by thirty-three percent. Monticello transportation related factors scored right around an average of 3 on a 5-point scale (where 5 = much more favorable than similar communities). Highway accessibility came close to the “somewhat more favorable” category, scoring the highest of all factors (see Chart 4). When businesses were asked to rank the three greatest strengths and weaknesses of Monticello as a location for their company, fifty percent of businesses chose highway accessibility, the top-rated strength. Interestingly, the factor “proximity to major markets” was rated as both the second-highest strength and the second-highest weakness. Project Plans from the Committee: The goal of this project is to provide improved and smoother traffic flow in, out, and through Monticello. The project team will do this by lobbying, networking, and influencing the transportation infrastructure in Monticello. Specifically, the project team will work to build consensus around the plans for Fallon Avenue and work to get the construction of Fallon Avenue completed. The project team will also work to gain approval for the current transportation plan. This committee will be led by Luke Dahlheimer, Megan Barnett-Livgard, Don Roberts, Rod Dragsten, Rachel Wernsing, and Tom Perrault. Please contact one of the committee members if you would like to participate in this project. Priority Project #3: Create Recreation Opportunities on the River and Embrace Downtown Business owners typically want to locate in areas with high quality of life and rich cultural and social opportunities, and employees usually prefer to work and live in such areas. Related Survey Results Monticello businesses already believe in the City’s small town atmosphere. This positive endorsement can be used to promote the community. Sixty-eight percent of businesses rated the city as an “excellent” or “above average” place to conduct business. The average score was 3.86 on a scale where 5 equals “excellent” and 1 equals “poor”. Businesses also have positive feelings about Monticello as a place to live. Seventy-two percent of businesses listed the community as an “excellent” or “above average” place to live (see Chart 5). These positive feelings about the community also translate into positive impacts on businesses. When asked about the community features that have a positive, negative, or negligible impact on the business, businesses gave “small town atmosphere” the second highest ranking, after freeway. 10 Project Plans from the Committee: This project will focus on activities and resources that enhance the community as a whole as well as enhance the downtown business district. The long- term goal of the project team will be to attract private investment into redevelopment and catalyst projects. In the short-term, the project team will work to bring activities to downtown, such as music in the park and monthly events like kayaking and canoe races on the river. The project team will further collaborate with the McComb Agency on the Embracing Downtown study currently underway. The committee will be led by Kevan Sorenson, Wes Olson, Lynne Dahl- Fleming, and Susie Wojchouski. Please contact one of the committee members if you have time or talents to share on this project. Priority Project #4: Form a Business Roundtable Business profits are the key to the retention and expansion of businesses. While current profitability is important, businesses must also make strategic, coordinated, and proactive plans to remain profitable. In order to formulate plans, businesses must have a strong sense of their own industry, as well as future trends in technology and economics. In addition, strong business communities often have many businesses that are well-connected to each other. Related Survey Results Survey results indicate that half of Monticello businesses will be facing changes in the next few years. Only 47 percent of businesses are not expecting to expand, move, sell, downsize, or merge in the future. Forty-five percent of businesses report major technological innovations on the horizon that might impact the business, and thirty-eight percent expect to modernize or expand the building or equipment. Regarding other types of changes in the next three years, twenty-three percent of businesses foresee adding or Average 20% Above Average 50% Excellent 22% No Response 8% Chart 5: Businesses' Overall Opinion of Monticello as a Place to Live 11 subtracting product lines; ten percent predict a change in the mix of goods and services; ten percent selected “other”; and seven percent predict a change in production technology. The “other” responses included updated technology, changes to regulations, and the constantly changing nature of the economy. About half of businesses surveyed (53 percent) predict that upcoming changes will have no effect on their number of employees. Twenty-seven percent believe the changes will influence them to add employees – an estimated 110 jobs combined. Only three percent believe the changes will influence them to reduce employees – an estimated six jobs lost. While many Monticello businesses will experience changes, it is an extremely encouraging sign that many more jobs are predicted to be added rather than lost. Project Plans from the Committee: The goal of this project would be to gather local businesses together to share information and training opportunities. The business roundtable would give businesses a forum in which to learn about technological and economic trends and future changes. The roundtable would also allow businesses to share experiences and ideas for confronting change. The project team is planning to arrange for speakers on a variety of topics to address the roundtable. The team is also considering potential times and arrangements. This project is led by Zona Gutzwiller, Joni Pawlek, Bill Tapper, Terri Sweet, and Tony Velishek. If you would like to help with this project, please contact one of the committee members. ▲▲▲▲▲ The Task Force selected the priority projects. This summary report was prepared by Brigid Tuck. Editorial assistance was provided by Adeel Ahmed and Michael Darger. Task force members also contributed to this report. In accordance with the Americans with Disabilities Act, this material is availalable in alternative formats upon request. Direct requests to the University of Minnesota Extension Store at 800-876-8636. University of Minnesota Extension is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation. MISSIONSTATEMENTS MonticelloPlanningCommissionPurposeStatement: Thefive-memberMonticelloPlanningCommissionreviewsdevelopmentplansandadvisesthe CityCouncilonalldevelopment,includingamendmentstothecomprehensiveplan,zoning, platting,variancesandotherlanduseissues. MonticelloEconomicDevelopmentAuthorityPurposeStatement: TheEDAischargedwithcoordinatingandadministeringtheCityofMonticello’seconomic developmentandredevelopmentplansandprograms.TheEDAisalsoresponsibleforhousing andredevelopment. MonticelloChamberofCommerce&IndustryMissionStatement: Tocontinuallysupport,serveandenhanceallbusinesssectorsintheMonticelloarea.The MonticelloChamberstrivestostrengthencommunicationamongbusiness,industry,school, government,serviceorganizationsandarearesidents. MonticelloTransportationAdvisoryCommitteeMissionStatement: AssistingtheCityindefiningtransportationneeds,lobbyingsupportfortransportation projects/studies,providingpubliceducationsupport,developingfundingsources,and establishingtransportationinvestmentpriorities,aswellastoserveasaplatformforfuture regionalplanninginitiatives. WrightCountyEconomicDevelopmentPartnershipMissionStatement: Tocreateahealthyanddiverseenvironmentforexisting,expanding,andnewbusinesses-which inturncreatesemploymentopportunitiesandenhancestheoveralleconomicvitalityofthe regiontherebybenefitingthebusinesses,communities,andcitizensofWrightCounty. IEDCAgenda–01/15/13 7.Considerationof2013IEDCWorkplan.(AS) A.REFERENCEANDBACKGROUND: TheIEDCadoptsaworkplanatthebeginningofeachyear,outlininggoalsand objectivesfortheorganizationandstaffforthenextyear.Staffisrecommendingthat theIEDCconsidera2013workplandirectedataccomplishingthemissionasdeveloped underItem7ofthisagenda. Withthegoalofprovidingastartingpointfordiscussion,staffhasbrokenoutpossible objectivesfor2013intothreeareasoffocus–on-goingefforts,projectsand communications.Thespecificworkitemswhichcomeundertheseareasshouldbe tailoredtothemissionoftheIEDC. Duringthemeeting,staffwillcovereachofthefollowingandobviouslywelcomesthe inputofmembersonotherideasandprojectsforconsideration. (1)OngoingEfforts (a)ConciergeProgram (b)GrowMN (c)BusinessRecognition (2)FocusedProjects (a)ComprehensivePlanUpdate (b)TransportationAdvisoryCommittee (c)SupportingEfforts:RestoreingDowntown,BertramChainofLakes (d)Other (3)Communications (a)EconomicDevelopmentWebsite (b)Enews (c)Cityresources IEDCAgenda–01/15/13 B.ALTERNATIVEACTIONS: 1.Motiontoadopta2012asdirectedbytheIEDC. 2.Motionofother. C.STAFFRECOMMENDATION: None. D.SUPPORTINGDATA: A.2012IEDCWorkplan INDUSTRIAL & ECONOMIC DEVELOPMENT COMMITTEE 2012 WORKPLAN Mission Statement: To increase the tax base and the number of liveable wage-level jobs in Monticello by promoting industrial and economic growth and working to maintain a desirable business environment. Objective: The IEDC is dedicated to being pro-active in following the guidelines established in the Monticello Comprehensive Plan. It is the intention of the IEDC to work within the areas identified below as supporting actions and objectives: Land Use: a. Review Economic Development section of Comprehensive Plan b. Revaluate best location for a 2nd industrial park (large lot development approach) *Provide a recommendation for appropriate location of second industrial park to the EDA by fall of 2012 Quality of Life: a. Continue to support and participate in the progress of the Bertram Chain of Lakes project. b. Lead a City wide effort to define the City’s brand and implement the brand *Request the EDA and CC authorize an RFP process to engage advertising firms *Submit RFP by March of 2012 c. Support implementing the Embracing Downtown Plan *Participate in the creation of a new downtown leadership team Transportation: a. Continue to lead the City in moving forward key transportation projects including but not limited to: *Second River Crossing, Fallon Avenue, and the expansion of I-94 *Through the TAC assist in determining the best location for a second River crossing and Fallon Avenue overpass *Meet with legislators *Determine best method to be placed on MNDOT’s list of priorities *Work with local business groups in surrounding communities Economic Development: BR&E: a. Follow up BR&E survey *Determine objective of survey *Electronic Survey *Send out survey by March of 2012 *Set up in order to allow issuance on a yearly basis b. Implement a monthly IEDC e-news update for the business community, written by the Chair and/or Vice Chair *Educate and inform the manufacturing community about the IEDC Training / Leadership Courses for local Businesses: a. Work with colleges and local manufactures to assist in establishing effective training and educational programs *Evaluate if appropriate and applicable to bring such courses to Monticello *Work with Monticello School District to implement Project Lead the Way or a similar STEM program. *Facilitate more frequent events between manufacturers and students. IEDCAgenda–01/15/13 8.Considerationtoappointnewmembers.(AS) A.REFERENCEANDBACKGROUND: TheIEDCisaskedtoreviewforrecommendationthescheduleof2013Industrial& EconomicDevelopmentCommitteeappointments. IEDCmembersareappointedbytheCityCouncilforthreeyearterms.TheCityClerk’s recordsindicatetheIEDC’scurrentmembertermsasfollows: BillTapper 3yr 2014 JimJohnson3yr2014 TimO'Connor3yr2014 RichHarris3yr 2012 DickVanAllen3yr 2012 DanOlson3yr 2012 ChrisKruse3yr 2012 WesOlson3yr 2012 LukeDahlheimer 3yr 2012 JoniPawelk3yr2013 ZonaGutzwiller3yr2013 WayneElam3yr2013 DonRoberts 3yr 2013 IEDCmembersRichHarris,DickVanAllen,DanOlson,ChrisKruse,WesOlsonand LukeDahlheimer’stermsexpiredinDecemberof2012. MembersRichHarris,DickVanAllen,andDanOlsonhaveallagreedtoserveanother3 yearterm.MembersChrisKruseandWesOlsonhavebothindicatedthattheywishto resignatthistime.MemberLukeDahlheimerhasnotindicatedhispreferenceforservice atthistime. TheIEDC’sOrganizationalandMembershipGuidelinesindicatethatwhilethe committeehasnosetsizerequirement,thegroupshallgenerallyconsistof16-18 members.Assuch,theIEDCwillneedtoneedtorecommendanadditional3business candidatesforrepresentatives.(TheIEDC’smake-upalsoincludestwonon-voting representativesfromtheCityCouncilandonevotingrepresentativefromtheMonticello ChamberofCommerce.) Assuch,thefollowingappointmentschedulehasbeenpreparedforrecommendationby theIEDCandapprovalbytheCityCouncil. IEDCAgenda–01/15/13 BillTapper3yr2014 JimJohnson3yr2014 TimO'Connor 3yr 2014 RichHarris3yr 2015 DickVanAllen3yr 2015 DanOlson3yr 2015 JoniPawelk3yr2013 ZonaGutzwiller3yr2013 WayneElam3yr2013 DonRoberts3yr2013 GlenPosusta Council ClintHerbstCouncil SandySuchyChamber TheCityCouncilwillformallyratifyappointmentsasrecommendedbytheIEDCin January,2013.Appointmentswillberetro-activetoJanuary1st,2013. B.ALTERNATIVEACTIONS: 1.MotiontorecommendtotheCityCounciltheappointmentofIEDCCommittee membersHarris,VanAllen,andOlsontoanew3-yeartermontheIEDC. 2.Motionofnoaction. C.STAFFRECOMMENDATION: StaffwouldrecommendthattheIEDCappointthosememberswhohaveagreedtoserve anadditionalthreeyeartermatthistime,delayingactiontoappointnewmemberstothe Februarymeeting. StaffisalsorequestingrecommendationsfromtheIEDConpossiblecandidatesforthe threeopencommitteepositions. TheIEDCmaywishtodelayrecommendationsonpotentialcandidatespendingthe outcomeofthediscussiononthecommittee’smissionstatement.Thedirectionofthe organizationmayinfluencethecandidatestheIEDCwishestorecommend. D.SUPPORTINGDATA: A.IEDCOrganizationalandMembershipGuidelines