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EDA Agenda 02-08-2012EDA MEETING Wednesday, February 8, 2012 6:00 p.m. Mississippi Room - 505 Walnut Street, Monticello, MN Commissioners: President Bill Demeules, Vice President Bill Tapper, Treasurer Tracy Hinz, Matt Frie, and Council members Tom Perrault and Brian Stumpf Staff: Executive Director Megan Bamett - Livgard, Finance Director Tom Kelly 1. Call to Order 2. Approve Meeting Minutes: a. January 11, 2012 Spec EDA Minutes — EDA Refresher b. January 11, 2012 Regular EDA Minutes 3. Consideration of additional agenda items 4. Annual Meeting: a. Elect officers b. Review fund balances c. Review Economic Development Annual Report (email Monday) 5. Consideration of authorizing a continued contract with Dan Wilson to assist in acquisition and relocation services for downtown Monticello 6. Consideration of authorizing Northland Securities to complete an update to the 2009 TIF Management Plan 7. Consideration of authorizing staff to draft and publish a Monticello Branding and Image Campaign Request For Proposals (RFP) and allocating $30,000 of EDA funds 8. Director Report 9. Adjourn MINUTES SPECIAL MEETING - ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 11, 2012 - 5:00 p.m. Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Tracy Hinz, Matt Frie, and Council Members Tom Perrault and Brian Stumpf Staff. Executive Director Megan Barnett - Livgard, Finance Director Tom Kelly, City Administrator Jeff O'Neill 1. Call to Order Bill Demeules called the special meeting to order at 5:00 p.m. 2. Purpose The purpose of the special meeting is to provide an overview of the role of the EDA and the rules and tools by which it functions to serve as a guide for the newer members of the EDA and a refresher for other members. 3. Review of EDA Refresher Manual Staff compiled an EDA Refresher Manual for EDA review. The document consists of sections related to enabling resolution, bylaws, ordinance, budgets, financial resources, conflict of interest, staff reports /director updates, and agendas. (Tracy Hinz joined the meeting at this time.) EDA Reference Material The reference material section provides the EDA enabling resolution and bylaws. The enabling resolution outlines the creation, history and the statutory authority of the EDA. The EDA has the authority to establish eminent domain for purchasing a property to correct blight, and to issue bonds and sign off on TIF district agreements to create economic development within a community. The bylaws establish appointments to the EDA. The EDA appoints a President, Vice President and Treasurer. New members are appointed for a six year term. The City Finance Director signs EDA checks. The Treasurer signs off on EDA invoices. The EDA coordinates with the Planning Commission and City Council to achieve the objectives developed in the Economic Development section of the Comprehensive Plan. Tracy Hinz asked for some background as to how and why the Housing Redevelopment Economic Development Authority Minutes 01/11/12 Authority (HRA) was eliminated. Bill Demeules pointed out that the HRA was merged with the EDA in an effort to streamline operations. Budget Tom Kelly outlined how projected budgets are generally developed. The City Council approves the EDA General Fund annually. Staff is provided a monthly EDA budget report. Ongoing expenses within an approved budget do not require further authorization. There is some flexibility within budgeted amounts. Staff presented the EDA with information related to unanticipated and /or out of the ordinary costs and propose action which includes a funding scenario. City Council approval is required for unbudgeted purchases over $5,000. Financial Resources There was considerable discussion about how decisions are made to use particular funding sources. Although the EDA has the authority to purchase property through TIF funding it is recommended that City Council also consider such transactions. Tom Kelly pointed out that the City often consults the City Attorney to clarify restrictions on spending. TIF Districts 2, 5, and 6 were created with fewer restrictions and are therefore more often considered for expenditure. There was some review of how TIF districts function as an economic tool and the importance of careful expenditure planning so that tax increment generated is not redistributed when the district expires. Each TIF District has a budgeted amount for administration fees and expenditures from this source must not be used for other purposes. There are several TIF districts which will expire or require decertification in 2012. The GMEF is a revolving loan fund that gets paid back with interest. The EDA usually issues one GMEF loan per year. Details related to GMEF guidelines and TIF districts would be provided at a future meeting. Staff will bring forward a request to update the TIF management plan at the February EDA meeting. Conflict of Interest Staff noted that information relating to conflict of interest was included. A form should be signed to document conflict of interest if one were to directly benefit from an EDA decision. Staff ReportslDirector Update The EDA agreed that the staff reports and director updates provided were informative. Agenda Staff suggested that the current process of preparing an invoice summary sheet may not be Economic Development Authority Minutes 01/11/12 necessary in that the computer check proof list is provided. There was some discussion about how it may be useful to know which items are within budget and the current balance for that particular budgeted line item. Bill Demeules noted that far too much time was spent discussing invoices during EDA meetings. He recommended that only invoices for which there are no funds budgeted or that are over budget be specifically questioned. He pointed out that a review of meeting minutes would provide information as to what had been approved and budgeted. The EDA was invited to contact Finance with questions related to invoices prior to the meeting. Tracy Hinz will be provided invoices for review and approval as EDA Treasurer. Paper copies of the agenda packets have, in the past, been printed and mailed to the EDA by Friday prior to the meeting. The agenda is also emailed to the EDA and posted on the City's website on Friday. Brian Stumpf noted that it had cost $4.80 to mail the agenda packet to his house. He suggested that the he would instead read it on the City's website. The rest of the EDA, with the exception of Tom Perrault, agreed that it was unnecessary to mail them a paper copy of the EDA agenda. Paper copies of the packet will be available at the EDA meeting. Jeff O'Neill mentioned that the City may explore the use of an IPad at meetings to save the cost of printing and mailing documents. 4. Adiournment BILL DEMEULES MOVED TO ADJOURN THE SPECIAL MEETING AT 5:54 PM. MOTION WAS SECONDED BY BRIAN STUMPF. MOTION CARRIED 6 -0. Recorder: Kerry T. Burri Approved: February 8, 2012 Attest: Megan Barnett - Livgard, Executive Director MINUTES ECONOMIC DEVELOPMENT AUTHORITY (EDA) Wednesday, January 11, 2012 - 6:00 p.m. Commissioners Present: President Bill Demeules, Treasurer Bill Tapper, Tracy Hinz, Matt Frie, and Council Members Tom Perrault and Brian Stumpf Staff. Executive Director Megan Barnett - Livgard, Finance Director Tom Kelly, City Administrator Jeff O'Neill Other: Jim McComb 1. Call to Order Bill Demeules called the meeting to order at 6 p.m. 2. Approve Meeting Minutes BILL TAPPER MOVED TO APPROVE THE DECEMBER 14, 2011 EDA MINUTES. MOTION WAS SECONDED BY BRIAN STUMPF. MOTION CARRIED 5 -0. (Bill Demeules abstained.) 3. Consideration of additional agenda items None 4. Approval of EDA Invoices BRIAN STUMPF MOVED TO APPROVE THE JANUARY 2012 INVOICES. MOTION WAS SECONDED BY TRACY HINZ. MOTION CARRIED 6 -0. 5. Consideration of approving allocating marketing dollars for a 2012 MNCAR Sponsorship The City has been a member of the Minnesota Commercial Association of Realtors ( MNCAR) for two years. This association allows Monticello to actively network with commercial brokers at many events throughout the year. City involvement has resulted in several broker contacts. Staff recently became aware of a sponsorship opportunity through MNCAR which would provide more consistent and continual exposure to commercial brokers who are well connected to decision makers. Sponsorship would cost $3,500 for 2012. There are marketing dollars are available in the EDA budget. Staff agreed to determine if there are any less costly sponsorship levels available. MATT FRIE MOVED TO APPROVE ALLOCATING $3,500 OF THE 2012 EDA MARKETING BUDGET FOR 2012 MNCAR SPONSORSHIP. MOTION WAS SECONDED BY BILL TAPPER. MOTION CARRIED 6 -0. Economic Development Authority Minutes 1/11/12 6. Discuss authorizing appropriate consultants to assist in implementing the Embracing Downtown Plan Staff has been working with Jim McComb and Janna King to determine the best approach to continue to solicit their consulting services to most efficiently and effectively implement the Embracing Downtown Plan. It is important to evaluate the long term benefit of working with experts at the forefront of the implementation process. Staff briefly outlined Janna King's proposal for establishing and working with a Downtown Leadership Team and assisting with the overall marketing of downtown. This role would be key to crafting a strong level of trust among downtown stakeholders and building the momentum needed to successfully market the project throughout the community. There were some questions about the tasks involved in this implementation phase, the cost, and the importance of reassessing the proposed contract after a certain period of time. Jim McComb described how his experience in retail and commercial development and expertise in negotiating financial packages would help to determine the parking lot fee for the downtown so that the City doesn't overpay for improvements. He indicated that the parking fee will factor into how proposals are structured for department stores, grocery stores, and other businesses. He also stated that it would be his role to help the municipality and the retail entity speak the same language in terms of moving forward with development of the downtown. He would make continued contacts with commercial realtors to bring in anchor stores and work with existing city businesses to ensure that they are located appropriately for their market. He has been assisting Ace Hardware with a plan for relocation. Staff summarized that continued coordination with Jim McComb would likely result in reduced projects costs, fewer surprises, and more direct access to end users. There was some discussion about the importance of bringing a recommendation to City Council prior to moving forward with EDA approval of these contracts. Tom Perrault noted that the contract periods proposed would need be adjusted. MOTION BY BILL TAPPER MOVED TO APPROVE ENTERING INTO A SIX MONTH CONTRACT WITH JIM MCCOMB AT A COST NOT TO EXCEED $35,000 AND A 6 MONTH CONTRACT WITH JANNA KING AT A COST NOT TO EXCEED $25,000 PENDING REVIEW BY THE CITY COUNCIL. MOTION WAS SECONDED BY MATT FRIE. MOTION CARRIED 6 -0. Both Bill Demeules and Matt Frie noted the importance of following through with a plan for implementation. Economic Development Authority Minutes 1/11/12 7. Director Report Greater MSP is getting the word out about Monticello. Staff received several inquiries about key projects and has submitted proposals for properties which meet inquiry specifications. The annual EDA meeting is scheduled for next month. The meeting will involve the appointment of officers, review of TIF funds, an update of the TIF management plan, and a review of GMEF loan funds. Staff would like the EDA to consider utilizing EDA General Funds to create a Downtown Revitalization Fund as a tool for implementing the Embracing Downtown vision. The EDA will also be asked to consider establishing a New Business Start Up Fund. Staff has initiated preliminary conversations with Kennedy & Graven to consider guidelines for this type of fund. Bill Demeules noted that the Small Business Administration has a micro loan program which might also provide some guidelines. Staff will be discussing the opportunity to develop a city wide branding campaign. The City Council will hold a workshop on January 23`a to talk about the future organization structure of the EDA. The EDA had some specific questions about which changes might be made. Jeff O'Neill invited EDA members to feel free to stop in to talk with him at any time. 8. Adjournment BILL TAPPER MOVED TO ADJOURN THE MEETING AT 6:42 PM. MOTION WAS SECONDED BY BRIAN STUMPF. MOTION CARRIED 6 -0. Recorder: Kerry T. Burri Approved: February 8, 2012 Attest: Megan Barnett - Livgard, Executive Director C FDA Agenda: 2/8/2012 4. Acceptance of EDA Fund Balance Report. (TK) A. REFERENCE AND BACKGROUND: Attached are the annual estimated fund balance report of all the tax increment districts within the City and the balance of the general EDA fund. This report is the unaudited balances of the districts and the EDA Fund. Staff is still in the process of closing out fiscal year 2011 and could still have some adjustments to make for 2011. The report reflects the decertification of TIF District 1 -31, which all obligations were paid off in 2011. The report also includes the addition of the new Suburban Manufacturing District 1- 39. All the TIF Districts were set up as pay -as- you -go obligations, which if the district does not generate enough increment to pay off the pay -as- you -go obligation the loss is to the developer /property owner and not the EDA or City. The exceptions are Districts 1 -36 (Dahlheimer), 1 -37 (Karlburger Foods), 1 -38 (Walker -In- Store), and 1 -39 (Suburban) which were provided upfront assistance in the form of reduced land acquisition costs in the EDA's Otter Creek Business Park. For these Districts the EDA sold the land at a price below market value and as increment comes in from the district we are paying the EDA back for this discounted land price. However, Districts 1 -36 and 1 -38 will not generate enough TIF to recoup actual land and improvement costs. It should also be noted that the pay -as- you -go note for District 1 -19 (Mississippi Shores) will have its last required payments in 2012 and that no further obligations will exist for this district even though the district will have 11 more years before required decertification. Thus, staff will be reviewing this district in 2012 and more than likely recommend that it be decertified early at the end of 2012. Also District 1 -5 (Construction #5) is legally required to be decertified at the end of 2012. B. ALTERNATIVE ACTIONS: Accept the 2011 EDA Fund Balance Report. 2. Do not accept the 2011 EDA Fund Balance Report. C. STAFF RECOMMENDATION: It is the recommendation of the City Staff for alternative 1. D. SUPPORTING DATA: 2011 EDA Fund Balance Report. 5. Consideration of authorizing a continued contract with Dan Wilson to assist in acquisition and relocation services for downtown Monticello A. REFERENCE AND BACKGROUND: The EDA authorized a $5,000 dollar contract with Dan Wilson to begin negotiating with Clay Montgomery to purchase his building located at the corner of Highways 25 and 75. Dan has made great progress with Mr. Montgomery. To date the EDA has expended $5,550.87 with Wilson Development. It is important to note that a few variables have changed since the initial contract approval. Mr. Montgomery wants to sell both of his buildings at this time and the City has identified additional desirable properties. In order to continue to implement the vision of the Embracing Downtown plan the EDA and City will need to extend the contract with Mr. Wilson. Attached is a general proposal that outlines potential work to be completed on Block 34 and the future anchor block. It is important to note that the costs are billed on actual time and service provided. Mr. Wilson notes that if the negotiations go well for a few of the businesses the hourly expense will be reduced. However, if the negotiations take significantly longer then the related expenses will increase. The key is to stay in constant communication with Mr. Wilson and work towards an overall cost efficient redevelopment project. Continuing a contract with Dan does not mean that the EDA and City agree to purchase all identified properties. The EDA and City Council will review purchasing opportunities on a case by case basis. Continuing to work with Dan Wilson will allow the City the ability to capitalize on "good" opportunities that are consistent with the Embracing Downtown Plan and Comprehensive Plan and hopefully result in an overall redevelopment project cost savings. The acquisition and relocation costs can be funded through surplus TIF if we are able to tie the purchase to a new construction project. The EDA has approximately one million dollars in surplus TIF funds. Another funding source is possible when a project is identified and a new TIF district is created. B. STAFF RECOMMENDATION: Staff recommends entering into a continued contract with Dan Wilson. Working with a relocation specialist will provide for the most cost effective means to complete the complex and expensive redevelopment projects. If the EDA and City Council desire to continue to pursue redevelopment opportunities on Block 34 and the future anchor block, it will be important to continue to work with Wilson Development to ensure all processes and procedures are followed correctly. Staff is also recommending that the EDA request the City Council ratify their recommendation. C. ALTERNATIVE ACTIONS: Motion to approve a continued contract with Wilson Development and recommend that the City Council ratify said motion. 2. Motion to deny entering into a continued contract with Wilson Development. 3. Motion to table action for further research and discussion. D. SUPPORTING DATA: Wilson Development Proposal 2 L-0- N ., V �& OPMENT SERVICES LLC Date: January 16, 2012 To: Megan Barnett From: Dan Wilson Re: Acquisition and Relocation Consulting Services Proposal #2 OFFICE 952- 448 -4630 800 -448 -4630 FAX 952- 448 -4676 510 N. CHESTNUT STREET SUITE 200 CHASKA, MN 55318 W W W. WILSONDEVELOPMENTSERVICES.COM Background Back in August 2011, we made a proposal to the EDA to provide acquisition services for one building owned by Montgomery Farms LLC, and the relocation of two businesses. My proposal was for $10,500, but the EDA limited the accepted amount of $5,000. Since that time, much has changed. The Montgomery acquisition has changed from one building to two buildings. The number of displacements has grown from two business to five businesses and two residential tenants. The EDA had also expanded the scope to include additional properties in the larger redevelopment area. We have started conversations with James & Cheryl Wolff (Finders Keepers). The NAPA building and the Ace Hardware buildings are pending. We have also participated in conversations with your assembled redevelopment team to provide an acquisition and relocation perspective, as well as attending a City Council /EDA planning meeting. Proposal Update The following is an updated proposal for our assistance through the completion of the currently identified parcels to be acquired and relocations completed. Estimated Costs Service Name Estimated Cost Acquisition Montgomery Farms LLC, 100 E Broadway $3,500 Montgomery Farms LLC, 112 E Broadway $2,000 Finders Keepers (Wolff), 101 3rd St. East $4,000 NAPA -218 3rd Street Ronald & Julie Reh $3,500 Ace Hardware -212 3rd Street, Shawn Grady $3,500 Acquisition Subtotal $16,500 Service Name Estimated Cost Relocation Lakeland Family Dentistry -100 Broadway E $4,500 Total Estimate Barbara Lee's Studio of Dance -100 Broadway E. $2,500 $ 5,550 Good Clean Fun Tattoos, Inc. -100 Broadway E $3,000 Pizza Factory-100 Broadway East $3,500 BL Used Bike Shop -112 Broadway East $2,500 Finders Keepers (Wolff) 101 3rd St. E. $3,000 NAPA 218 W Third Tenant Maytag Laundry $4,000 Monticello Ind. Commercial Supply -212 W 3rd St. $3,000 Grady 's Ace Hardware 212 West 3rd $4,000 Residential Tenant - Archambault -112 Broadway E $2,200 Residential Tenant - Bregenzer, 112 E Broadway E $2,200 Relocation Subtotal $34,400 Service Description Cost General Planning Five Meetings $2,250 Total Estimate Attend Redevelopment Team Meetings, City & Services to Date $ 5,550 EDA meetings as requested preparation and $47,600 follow up. Summary of Total Estimate Acquisition $16,500 Relocation $34,400 General Planning $2,250 Total Estimate $53,150 Services to Date $ 5,550 Net Remaining $47,600 2012 Charge Rates Principal $110 /hr Associate $95 /hr Administrative $75 /hr Mileage IRS Allowable Copies .15/30 Each Postage, other At Cost Our intent is to be paid for whatever we are requested to do. We only charge for the actual time and services that we provide. Some acquisitions and displacees will cost more than the budget amount and some will cost less. Ours is a people business, where individual motivations and level of cooperation can vary widely. Our approach to working with people has proven to be cost effective and productive in a tension packed process. The above budget figure is a reasonable budget amount in aggregate. 6. Consideration of authorizing Northland Securities to complete an update to the 2009 TIF Management Plan A. REFERENCE AND BACKGROUND: The EDA initiated a TIF Management project in 2009. The purpose of the project was to complete an in depth analysis of the City's TIF districts. The project provided valuable information and produced the following tangible results: • One source for 20+ districts • Surplus TIF balances • TIF shortfalls • Districts to decertify • Recommendations on ways to best utilize surplus balances Subsequent to the completion of the TIF Management Plan several actions have been completed. In the past three years several districts have been decertified, surplus TIF balances have been utilized, and a new district has been created. Staff continually references information outlined in the TIF Management Plan. The reference manual has provided a clear financial understanding of each individual TIF district. B. STAFF RECOMMENDATION: City staff recommends engaging the services of Northland Securities to complete an update to the 2009 TIF Management Plan. The cost to complete the project is at a not to exceed amount of $5,500 including reimbursable expenses. The proposed fee to complete the project can be distributed to each of the active TIF districts as an administrative cost. The small administrative cost per district is minimal compared to the tangible and frequent utilization of the information. C. ALTERNATIVE ACTIONS: 1. Motion to approve engaging the services of Northland Securities to complete an update to the 2009 TIF Management Plan. 2. Motion to deny engaging the services of Northland Securities to complete an update to the 2009 TIF Management Plan. 3. Motion to table action for further research and discussion. D. SUPPORTING DATA: Northland Securities Proposal NORTHLAND 0 SECURITIES January 27, 2012 Megan Barnett Economic Development Director City of Monticello 505 Walnut Street #1 Monticello, MN 55362 RE: Update of TIF Management Dear Megan: In 2009, Northland Securities had the privilege of working with the City of Monticello and the Monticello EDA to prepare a Management Plan for TIF Districts. This purpose of this letter is to describe a scope of work and budget for updating the Plan. Overview The proposed scope and budget is based on the experience of preparing the existing Plan and my understanding of your objectives for updating the Plan. We will gladly discuss changes that better tailor our work to meet your objectives. Our proposed approach is based on the following objectives: 1. Update the Plan to account for changes in the use of each TIF district and the addition of new TIF districts (1 -39). 2. Prepare new projections using current financial information. 3. Explore ways to use tax increments to meet local objectives, including implementation of initiatives from your downtown plan. 4. Update out -dated sections of the Plan document, including recent legislative changes and interpretations from the Office of the State Auditor. 5. Determine if other changes in the document are needed to make it more useful for the City. Scope of Work To achieve these objectives, Northland will perform the following tasks: 1. Conduct "kickoff" meeting with City Staff to review objectives, set key dates and collect data. An important discussion item for this meeting will be details of new TIF initiatives to consider through this process. The preliminary data needs include: a. Parameters for TIF District 1 -39. b. Changes in TIF obligations from 2009 Plan, including refinanced debt and new spending plans. c. Fund balances for each district as of December 31, 2011. d. Pay 2012 parcel data. 45 South 7� Street, Suite 2000, Minneapolis, MN 55402 Main: (612) 851 -5900 / Direct: (612) 851 -4992 / Email: rfifield@northlmdsecurities.com Member FINRA and SR'C TIF Management Plan Update- DRAFT January 27, 2012 Page 2 e. Pay 2012 tax rates. 2. Review data and collect additional data as needed to complete update objectives. 3. Update the financial projections for each TIF district. 4. Explore ways to accomplish initiatives identified by the City. 5. Prepare updated Management Strategies for each district. 6. Meet with City Staff to present and discuss findings and recommendations. 7. Conduct additional analysis and investigations (as needed) to follow up on items from Staff review. 8. Prepare draft of updated Management Plan. 9. Submit draft for Staff review and comment. 10. Prepare draft Plan for EDA review. 11. Meet with EDA to present and discuss proposed update of Management Plan. 12. Address feedback from EDA and prepare final Plan document. Budget NSI will perform all services necessary to complete the work described in this letter at a cost not to exceed $5,500. Northland will bill on a monthly basis for services performed and actual reimbursable expenses (travel, publication, printing and mailing). Staff time will be billed at a rate of $160 per hour. Thank you this opportunity to continue our service to Monticello. Do not hesitate to contact me with any questions or comments. cerely, Rusty 1 e d Director of Public Finance /Senior Vice President 7. Consideration of authorizing staff to draft and publish a Monticello Branding and Image Campaign Request Proposals (RFP) and allocating $30.000 of EDA funds A. REFERENCE & BACKGROUND: Who is the City of Monticello? What do people say about Monticello? What image do we portray to the "outside" world? It can be said that Monticello has numerous amenities, for example we have several top ranked enterprises: Hi -Way Liquors, Monticello Community Center, DMV, and FiberNet Monticello. Monticello also has first class parks and trails, good schools, great shopping and dining experiences. Taking a closer look at the enterprises and amenities in Monticello it can easily be said that everyone has their own look and message. Staff would like to initiate a branding and image campaign in Monticello to address the fragmented messages we are giving residents, citizens, and businesses. Establishing a brand and image can set our community apart from surrounding communities. 71% of site selectors choose a location for their next business based off of brand and image. The League of MN Cities says "when a brand is launched, its advantageous for a community to speak in one voice, and what's spoken needs to be strategic... Your brand rests in the minds and hearts of other people." What is Monticello's brand? What is Monticello's image? What do people say about Monticello "behind our back ?" Staff would like to initiate a City -wide branding campaign. The City of Elk River recently completed a branding and image campaign. The consultant they hired made a very applicable statement that staff would like to restate, "A community's reputation will be defined by its government, its businesses, its organizations, and its residents — or, it will be defined by others. When community leadership makes the choice to define itself, it takes a step toward managing and sustaining its reputation." The purpose of the branding campaign will be to pull all the enterprises and community assets together to determine one voice and one brand. Brand is not just a logo or tag line, it is determining who we are and taking strategic steps to clearly communicate the local message. The idea is to put together an RFP and solicit marketing firms to assist in this campaign. We will ask for tangible results including implementation methods and a longer term communications strategy for the City. B. STAFF RECOMMENDATION: Staff is recommending that the EDA and City Council authorize the establishment and publication of a Request For Proposal (RFP) to initiate a robust brand and image campaign for the City of Monticello. Staff is recommending a maximum of $30,000 dollars of EDA General Funds be allocated to this powerful economic development initiative. City staff is researching grant opportunities with the Initiative Foundation and Blandin Foundation to assist in the cost. Monticello has done a great job in accomplishing many progressive projects and initiatives; however we are not communicating or marketing ourselves effectively and EDA 2.8.12 efficiently. The power of brand and image lies in the ability to more cost effectively attract companies to Monticello. The IEDC will be discussing this initiative at their February 7a' regular meeting. Staff will provide a verbal update. C. ALTERNATE ACTIONS: 1. Motion to recommend the City Council authorize City staff to create and publish a Request for Proposal (RFP) initiating a branding and image campaign, allocating $30,000 dollars of EDA funds, and directing staff to research grant opportunities and/or private investor partnerships. 2. Motion to deny initiating a branding and image RFP. 3. Motion to table item for further research and discussion. D. SUPPORTING DATA: 1. Copy of Elk River's RFP EDA 2.8.12 Our brand and image won't change overnight. Establishing a brand and marketing plan will provide staff and decision makers a tool to use when making decisions, which in turn will begin establishing our brand. L- 0 C N O C L •� 3 (D N +� O w It doesn't have to be a tagline or logo. It's how people feel when they think about you. We want people to see Elk River as a great place to live and do business. It's important people see us as a community that works together and a City that gives off a strong, unified message. EDENA branding and marketing strategy PRAIRIE will also allow us to best utilize PRAIRIE E our assets: get rid of inefficient marketing and perhaps start something new (ie: mobile website) City of l-�- River City of Elk River Request for Proposals: Branding and Marketing Strategy Contact: Annie Deckert Economic Development Assistant City of Elk River 13065 Orono Parkway Elk River, MN 55330 763.635.1042 adeckert @ci.elk - river.mn.us Dated: January 3, 2011 Responses Due: January 14, 2011 Elk River Branding and Marketing Strategy About Elk River An innovative and sustainable City, Elk River is located along the convergence of the Elk and Mississippi Rivers. This vibrant community encompasses 44 square miles and is located along US HWY 10 and 169. Home to nearly 24,000 residents and over 1,000 businesses, Elk River serves as a regional hub for business activity as well as a place to call home. The MN Department of Administration estimates Elk River will nearly double in population (46,000) by the year 2035. Located 35 minutes northwest of downtown Minneapolis, the Northstar Commuter train provides residents safe, reliable transportation to the metro area to enjoy the fast - paced hustle and bustle, and will bring you back to enjoy the amenities Elk River offers; 44 parks throughout the City, covering over 900 acres, including a premier mountain bike park and cross country ski trails that are well known throughout the Midwest. Other amenities include two public golf courses, a newly constructed YMCA and the first gold LEED public library in the State of Minnesota. In addition to the wide variety of family - friendly recreational opportunities Elk River has a healthy mixture of retail, service and industrial development. Home of two fortune 50 data centers and over 50 manufacturers; Elk River has a wide range of employment opportunities. In fact, of our 20 top employers, manufacturers make up half that list, providing over 880 jobs in our community, and our business development is continuing to grow; over 845,000 square feet of Business Park has been built within the past ten years. In 2008, CNN Money magazine named Sherburne County number 22 in the nation for job growth; attributing it to the two data centers which chose Elk River has their home, and invested more than $250 million into the community, calling Elk River "a cushy place for new companies to grow, with business development assistance and reasonably priced commercial and industrial land ". In addition to having the first gold LEED certified library and elementary school in the state, Elk River is proud to be MN's federally trademarked Energy City. Designated by the state of MN in 1996, Elk River serves as a premier community for the demonstration of innovative technologies in energy efficiency and renewable energy. Energy City is recognized nationally and internationally, hosting educational tours of its many demonstration sites. Energy City is made up of a group of energy related businesses, industries and governmental entities united in the belief that the production and consumption of energy is one of the leading environmental issues facing the world today. Not only do we showcase over 25 demonstration sites, offer free technical and design assistance to new and existing businesses, teaching them how to implement cost saving and environmentally friendly initiatives in the building process, but we team up with our residents; businesses and residents alike are proud to live in Elk River Energy City. 2 Launched in 2008, Project Conserve is aimed at encouraging residents of Elk River to reduce electric, gas, water and gasoline consumption as well as decreasing what goes into the waste stream. In the first year, over 35 families participated; five families saw an electric savings of over 25 %, up to $500 the first year. Phase II is currently underway, with a goal of 500 families participating. Elk River leads by example. Background The City of Elk River is looking to identify a City wide brand and marketing strategy to represent the entire City. Brand and marketing strategy should include and represent Elk River's Vision and Goals: Vision Abounding in natural beauty, Elk River is a vibrant, historic river town that promotes an active lifestyle in an innovative and involved community offering unlimited opportunities. Goals supporting the Vision • Innovation- Develop new programs and services to meet the needs of the community • Community Development- Enhance community involvement and public participation • Beautification- Have attractive welcoming streetscapes at City entrances and primary corridors. Enforce zoning ordinances • Opportunities- Foster a pro - growth atmosphere that provides incentives and other opportunities for new and existing business The Vision was the result of a two -day visioning seminar held by various City Staff in September. The Vision and Goals were approved by the Elk River City Council in October, and staff is currently working on the creation of a plan, comprised of action steps to be completed to assist in meeting the Goals. The Elk River Economic Development Authority (EDA) authorized a City wide branding and marketing strategy as a step to assist in meeting the Goals. The visioning seminar included the following: • Team building with City staff • SWOT analysis of the City • Goal setting based on SWOT analysis The process should incorporate the Vision and Goals and utilize the information above to work cooperatively with the branding and marketing process. The EDA and /or City staff may put the branding and marketing strategy process on hold at any time. On December 13th, the Economic Development Authority authorized created a branding subcommittee to execute the RFP process and work with staff to facilitate this process. Expectations: At a minimum the study should provide a report containing: 1. Research, information gathering and background review of community a. The City shall be provided all raw data resulting from the review in an executive report b. All data collected shall remain confidential and exclusive to the City 2. Analysis of current branding and marketing strategy, including, but not limited to: a. current and prior plans, strategies and taglines b. websites c. social media sites 3. In addition to those not represented on the branding subcommittee, public participation including, but not limited to: a. City Departments and employees (i.e. online survey to all employees) b. City Commissions (City Council, Planning Commission, Economic Development Authority, Housing Redevelopment Authority, Utilities Commission, Parks and Recreation Commission, Energy City Commission) c. Area businesses d. Downtown River's Edge Business Association e. Elk River Area Chamber of Commerce f. Residents g. Area Developers h. Elk River Area School District L Surrounding communities 4. Research and surveying methods including, but not limited to: a. Online surveys b. Interviews c. Phone calls d. Community polls 5. Communication plan to update residents, business owners and employees of milestones and key findings, including but not limited to: a. Page on existing website b. Monthly email updates c. Social media updates 6. Creation of community branding and marketing strategy, utilizing results of public participation and branding subcommittee 7. Utilization of existing logo (proposals which include a new logo will eliminated) 8. Master implementation strategy and detailed action plan a. Includes prioritization of tasks in regard to importance and feasibility b. Final presentation of implementation strategy to Economic Development Authority and City Council 9. Follow -up support including, but not limited to: a. a follow -up survey to all participants one year after study completion to evaluate process and results b. consultant support regarding implementation plan and action steps Ell Detailed work plan identifying: 1. Tasks to be accomplished and the amount of budget hours for each task and subtask. a. This will be used as a work plan and managing tool for basis of invoicing. b. Include a not to exceed fee 2. Identify deliverables. a. Voice, video, data and other supplementary services b. Key milestones of project c. Level of City staff participation d. Status meetings identified through work plan (minimum four) with staff and branding subcommittee. 3. Detailed cost estimate of the study, including professional hourly rates and multipliers and estimated service /task hours. Other expenses related to the completion of the study will be discussed on a case -by -case basis. Preferred pricing will identify fixed cost bids with a menu of necessary and optional services. a. Cost estimate as it relates to utilizing existing web software (GovOffice) b. Cost estimate as it relates to utilizing other web software c. Cost estimate as it relates to creation of mobile website d. Cost estimate as it relates to reimbursables; mileage, meals, etc. Statement of Qualifications: The following will be considered minimal contents of the proposal: 1. Goals, objectives, and project tasks to demonstrate the responder's view of the project and exhibition of responder's knowledge and expertise regarding community marketing and branding 2. Outline of respondent's background and experience with particular emphasis on working with businesses, local level governments and non - profits a. Provide contact list for at least three (3) references in support of the background and experience. b. Provide samples work to support of experience of working with businesses, local level governments and non - profits if available. 3. Identify key personnel to conduct the project. No change in key personnel assigned to the project will be permitted without approval of the City. 4. Demonstrated ability to create and analyze customer survey, sales and marketing objectives. 5. Demonstrated ability to analyze and interpret the regulatory and legal landscape by providing guidance on the regulatory hurdles of different delivery options. Requirements: ■ Coordination meetings with City staff ■ Presentations to branding subcommittee, EDA and City Council per request Evaluation Criteria: • Proposer's ability and capacity to meet all Request for Proposal conditions and expectations as solely determined by the City's branding subcommittee • The best fit with the City of Elk River • Value and price for services offered • Ability to complete the job in the time allotted • Prior satisfactory conclusion of similar work or evidence of specific experience regarding community marketing and branding • Stated and demonstrated understanding of the scope of work being sought • After initial review of proposals, additional information (i.e. references, examples of work, etc.) may be requested • After proposal selection, work may be put on hold to ensure branding and marketing strategy is in sync with the Vision and Goal process as outlined on page 4 o Proposer may not charge additional cost for delay in process The City does not guarantee selection of any vendor and reserves its right to reject all proposals. Furthermore, the City may or may not accept the lowest price quotation and reserves the right to select the proposal which best meets its needs and selection criteria. RFP Timeline *: RFP Issue date — January 3, 2011 Proposals due — 4:30 pm, January 14, 2011* Interview consultant finalists — February 14, 2011 (times to be determined) EDA and subcommittee approval selecting consultant — February 2011 Award contract and begin work ** — February /March 2011 Presentation of implementation plan to EDA and Council- May /June 2011 Submission Deadline: • Fifteen (15) hard copies of proposal and one (1) electronic version on CD including all attachments and supplemental information delivered to Elk River City Hall no later than 4:30 p.m. on January 14, 2011: Annie Deckert Marketing and Business Development Administrator City of Elk River 13065 Orono Parkway Elk River, MN 55330 • All questions by prospective responders regarding this RFP should contact: Annie Deckert Marketing and Business Development Administrator adeckert @ci.elk - river.mn.us 763- 635 -1042 *Questions must be submitted in writing no later than January 10, 2011. ** date my change if EDA and subcommittee request additional information from finalists before making final selection 8. Economic Development Director Updates: EDA: Staff will be asking the EDA at a future date to authorize WSB to complete a wetland delineation for the remaining vacant lots in the Monticello Business Center industrial park. Establishing wetland boundaries on these parcels will assist in determining how much developable acreage is available for potential end users. Staff will also be discussing new business financial programs with the EDA. Staff is researching opportunities to establish a downtown redevelopment fund for certain blocks and a new business start up program. Inc uiries: In general the City has been receiving requests for land proposals from the State that require the following criteria: a. 30 -100 acres of contiguous land b. All utilities to site c. Dual power and fiber optic service providers d. 3 to 6 megawatt power with 70% demand flow e. Berming, private access, high privacy fence Construction of data centers is a sector that continues to grow and expand in MN. Monticello has a couple challenges to work through which include: enough continuous land that is already served by utilities and adequate distance from the power plant. With that said, it might be advantageous to begin working with private land owners to address a few of these challenges and explore opportunities to make the properties immediately "ready" for development. End users do not want to wait the standard 6 -9 months for processes and utilities to be pulled to sites. Monticello would be a great location for data center clusters due to the fact we are serviced by dual power and fiber optic providers. Data centers provide high paying jobs and good tax base. This may be an item that we should discuss at the March IEDC with a map and a list of land owners to determine a strategy that would showcase Monticello to this booming sector. Ford Site At this time the City has not received the required application and related escrow deposit. Therefore the planning process is currently on hold until the developer submits the required items. Staff has been very accommodating and continues to clearly communicate to the developer the required steps and deposits to move the project forward in a timely and efficient manner. Marketing / Venues: Staff is working with Dave LaHaye and Michele Hertwig to create a consist and robust marketing strategy for 2012. Business Communications & Retention Initiatives: The next Concierge Tour is scheduled for Wednesday, February 15, 2012 at 8:00am at Hoglund Bus and Truck. The Mayor and City Administrator are scheduled to have breakfast with Dahlheimer Distribution on February 16 . Embracing Downtown: The Planning Commission and two downtown stakeholders will begin rewriting the Central Community Downtown district in February. Negotiations continue to progress with the Montgomery Farms buildings. Dan Wilson has contacted all five tenants informing them that the City /EDA is currently in negotiations with Clay Montgomery to purchase his buildings. The tenants have been made aware that they are subject to relocation benefits. Dan will continue to work with the tenants on an individual basis to determine applicable relocation benefit packages. Wright County Partnership: The new Executive Director of the Wright County Economic Development Partnership continues to revamp the organization. Please see the attached email outlining upcoming luncheon topics. The Partnership is trying to regain focus on economic development for the entire County. More efficient and collaborative marketing and financial resources will be initiated. MISC. The City Council approved a Business Expansion hicentive program in 2010. Guidelines were established to encourage existing businesses to expand their facility or relocate and expand within Monticello. If certain criteria were met the business was able to receive a waiver of the building permit plan check fee and/or planning fees up to $5,000. The City Council allocated $30,000 dollars from the Liquor Store to fund this program. Staff thought it would be of value to outline the success of the program. Since 2010 the City Council has approved $17,617.43 dollars worth of building permit plan check review fees and planning fees. This equates to six applicants or existing businesses expanding in Monticello. In a time of economic decline, it is very encouraging to see several businesses expanding and growing in Monticello. Future Meeting Dates: 1. IEDC: March 6, 2012 2. EDA: March 14, 2012 EDA February 8, 2012