EDA Agenda 07-14-2014 (Special Meeting)AGENDA
SPECIAL MEETING — MONTICELLO ECONOMIC DEVELOPMENT AUTHORITY
Monday, July 14, 2014 — 6:00 p.m.
Mississippi Room, Monticello Community Center
EDA: Bill Demeules, Bill Tapper, Tracy Hinz, Matt Frie, Rod Dragsten, Tom Perrault,
Brian Stumpf
Others: Angela Schumann, Jeff O'Neill, Wayne Oberg, WSB Representatives
Call to Order
2. Purpose of Meeting: Review Proposal for Market Matching Economic Development
Services
3. Consideration to approve a contract with WSB & Associates for Market Matching
Economic Development Services for July 2014 -June 2015
4. Adjournment
EDA Special Meeting: 07/14/14
Consideration to approve a contract with WSB & Associates for Market Matching
Economic Development Services for July 2014 -June 2015. (JO /WO /AS)
A. REFERENCE AND BACKGROUND:
The City Council and EDA have been asked to attend a joint workshop to consider the
extension of the Market Matching contract for one year. The City and EDA contracted
with WSB Market Matching in June of 2013. The contract ran from July 1St, 2013
through June, 2014.
In June 2014, the EDA reviewed the progress and deliverables associated with the
previous year's contract. Based on that review, the EDA took action to direct staff to
work with WSB to prepare a Market Matching contract including a revised scope of
services for July 2014 through June 2015.
As outlined in the proposed contract, the coming year for Market Matching will be
focused on reinforcing relationships and networks built over the past year in the
marketplace and increased prospect development. Market Matching's new contract will
be gauged on the number and quality of prospects cultivated and the results of the lead
follow -up. The City is looking for Market Matching to develop leads in all sectors —
residential, industrial and commercial.
The WSB Market Matching team will be present during the workshop to provide an
overview of the previous contract results and to outline services proposed under the new
contract. A draft of the proposed contract, along with a timeline for services and a
communications schedule, is attached for reference.
The EDA is asked to take formal action at the conclusion of the workshop regarding the
contract. The alternative actions are written to support the EDA's decision. The City
Council is asked to take action on the contract as part of their regular meeting and a
similar agenda item has been included with their regular agenda packet for consideration
of action.
Al. Budget Impact: Similar to the prior contract year, the City Council and EDA are
each asked to fund a 50% share of the contract. The 2013 -2014 contract included a
provision locking in the current rate of $4,000 /month. As such, the 2014/2015 Market
Matching contract is proposed at $48,000 for the year, or a $24,000 cost each to the EDA
and City Council. Last year, that appropriation request totaled $92,000, which included
an amount representative of the City's 50% share of the Market Matching contract. The
2014 General Fund transfer to the EDA Fund transfer is $93,000 and also includes an
amount representative of the City's 50% Market Marching share.
However, by approving the contract, the EDA and City Council are also committing to
allocate $12,000 each in 2015 to fund Market Matching services under this contract.
A2. Staff Impact: Staff believes that the use of Market Matching has allowed
Monticello to reach a network well beyond what internal staff could accomplish on their
own. The Market Matching team is able to attend at trade, industry and networking
events that existing staff would not be able to commit to given existing workloads. In
short, Market Matching acts as an external staff sales team. This allows City staff to
focus on internal economic development initiatives and processes.
B. ALTERNATIVE ACTIONS:
Motion to approve the proposed contract for services between the City of
Monticello and WSB & Associates for Market Matching, including funding 50%
of the annual expense ($48,000) by the EDA, subject to contract revisions as
suggested by the EDA.
2. Motion to deny the proposed contract for services between the City of Monticello
and WSB & Associates for Market Matching, and the funding of 50% of the
annual expense ($48,000) by the EDA.
Motion to table for further research and discussion as directed by the EDA.
C. STAFF RECOMMENDATION:
Staff recommends Alternative #1.
The first year of Market Matching was focused on building the unique selling proposition
and information resources (InfoTracker, sales sheets, market data, mapping) for the
marketing effort, along with establishing Monticello's Market Matching efforts in the
larger marketplace. This foundation was necessary to support external marketing efforts.
With this foundation now in place, Market Matching will focus on lead development and
follow -up.
As previously noted, staff supports the overall use of WSB's Market Matching services
based on the following:
• Staff believes that the product is tailored to Monticello's needs and the evolving
idea of a sales -based economic development strategy.
• The program has built and will continue to support an important foundation of
inventory and asset information for the City.
• The use of consulting services allows the City to contract for a specific timeframe.
The City can terminate the contract if it finds that it is not meeting intended goals.
• The use of contract services allows the City to determine the success of a sales -
focused approach for economic development, without being locked into the
creation of a staff position. The City can then assess the results of both the
contract and the new sales approach.
• The cost to implement the sales -based approach through consulting services is
less than the City would likely need to pay to generate the equivalent task
products noted above.
• Using a consulting service for lead development and initial lead response will
allow existing city staff to focus their attention on continued community
marketing and business retention efforts.
• City staff will be actively involved in working with prospects as they develop and
move through the decision process. Existing staff and consultants (Ehlers,
Kennedy & Graven, Northland Securities) will also continue their roles in
supporting the development of financial and legal packages necessary for any
transaction.
D. SUPPORTING DATA:
A. Proposed Market Matching Economic Development Services Contract
B. Market Matching Timeline of Services
C. Market Matching Communications Schedule
WSB
& Associates, Inc. engineering • planning • environmental • construction 701 Xenia Avenue South
Suite 300
Minneapolis, MN 55416
Tel: 763 - 541 -4800
Fax: 763- 541 -1700
July 9, 2014
Mr. Jeff O'Neill
City Administrator
City of Monticello
505 Walnut Avenue, Suite 1
Monticello, MN 56069
Re: Economic Development Services for the City of Monticello
Dear Mr. O'Neill:
Thank you for again providing WSB & Associates the opportunity to submit this proposal to provide
Economic Development Services for the City of Monticello. Provided below is a summary of the proposed
Scope of Services and Fee:
SCOPE OF SERVICES:
The Economic Development Services Monthly infographic prepared by WSB & Associates and dated
July, 2014 is adopted as an addendum to this contract. All services as outlined within the Economic
Development Services Monthly infographic are hereby assumed services and deliverables as part of the
following contract.
Task 1: Deliverable Development & Data Collection
• Deliverable 1: Market Data
Revision /completion of the original contract's remaining tangible deliverables within
the first 45 days of the new contract. To include the following:
o Housing market demand analysis report
Deployment of completed market matching materials
Review site maps and update every two months
Deliverable 2: Data Deployment
- Dedicated focus on news release and development of economic
development /business features for City communication outlets.
• WSB will coordinate press releases as needed
• WSB will ensure consistent integration of USP throughout all marketing
efforts
• WSB will provide content and copy for the City's economic development
website
• Deliverable 3: Data Management
- Manage and report on SalesForce CRM Community Partner Portal
o WSB will include the CRM report in the written monthly market matching
report to staff.
- Business Retention & Expansion
Equal Opportunity Employer
wsbeng.com
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- WSB will conduct three BR &E interviews per month
• Data collected from BR &E interviews will be provided to and reviewed by
Greater MSP & MNDEED
• WSB will include data collected from BR &E interviews in monthly market
matching report to staff
• Deliverable 4: Economic Development Opportunities
- WSB will identify and assist in identifying potential economic development
opportunities: including the following:
• Land Acquisition
• Financial Incentive Opportunities
Task 2: Market Engagement
• Deliverable 5: Profile of Targeted Prospects
EDA/staff discussion regarding targeted industries and potential market entrants as it
relates to City -held properties
o Coordinate EDA/City Negotiations Team work on City -held properties to
determine sale disposition and representation; produce sale pieces; develop
and present recommended sales strategy
• Produce sales pieces
• Develop and present sales strategy
- Coordination of Tour for Prospective Leads
o WSB will coordinate tours for prospective leads as necessary.
Deliverable 6: Deliver Leads /Assist in Closing
- Act as a conduit for information and resource for market entrant and the City staff
(on- going)
o WSB will take a lead role in providing detailed development related
information to all qualified leads including:
• Assistance with financial package preparation in consultation with
City staff, policy makers, and financial consultant
• Attendance at pre- design meetings associated with Market Matching
leads.
Deliverable 7:
Active networking with potential market entrants (on- going)
• External Organization and level of participation (on- going)
• Greater MSP — WSB retains membership and acts as representative
• DEED — City retains memberships and WSB acts as representative
• EDAM — WSB retains membership and WSB acts as representative
• Central Minnesota Initiative Foundation — City retains membership and WSB
acts as representative
• Minnesota Chamber of Commerce — WSB retains membership and acts as
representative
• Broadband Properties — City retains membership and WSB acts as
representative
• Wright County Economic Development Partnership — membership by both
City and WSB and WSB acts as primary representative with City support
• Minnesota High Tech Association — WSB acts as representative
• Central Minnesota Industrial Partnership — WSB acts as representative
• Central MN Manufacturer's Association — WSB acts as representative
• Conference and Association Trade Shows — TBD
• Sensible Land Use Coalition — WSB acts as representative
• League of Minnesota Cities — WSB acts as representative
• NAIOP — WSB acts as representative
• CoreNet Global — WSB acts as representative
• Urban Land Use Institute — WSB acts as representative
Maintain current understanding of existing Grant programs for potential use in
conjunction with Market Matching efforts.
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o Monthly report to staff on opportunities and corresponding project fit
Task 3: Project Management
• Deliverable 8:
- Provide consistent and effective communication with City Staff, EDA, and City
Council. (see communications plan)
• WSB will provide Weekly Email Updates to City Staff
• WSB will attend Bi- Weekly Staff Update Meetings
• WSB will provide Written Monthly Memo to City Staff of Market Matching
efforts
• WSB will provide Bi- Monthly Presentation to the EDA and City Council
meetings on a monthly rotating basis. The governing body whose meeting is
not attended will receive an email update
• WSB will prepare website information
• WSB will deploy the City Economic Development Flyer
• WSB will prepare Property Site Flyers on an as needed basis
• WSB will coordinate with the Chamber of Commerce in conjunction with
Market Matching efforts and property map updates.
FEE FOR SERVICES
As outlined in the 2014 Economic Development Services contract, the City has the option to retain WSB
& Associates for an additional 12 months at the fee of $4,000 per month.
Travel expenses incurred by WSB within the State of MN as part of the Economic Development Services
offering are still included in the monthly fee stated above. Travel expenses incurred by WSB for travel
outside of the State of MN that is directed by the City of Monticello shall be paid for according to a
negotiated price.
Additionally, fees for services outside of the above described scope that may be required from time to
time shall be completed at an additional hourly rate. Types of services could include the following:
- Grant /Funding Support
- FiberNet Monticello Marketing Support
- Website Management
The above described services will be provided in accordance with WSB's in -place Professional Services
Agreement. If you are in agreement with the proposed project Scope of Services and FEE, please sign
below and return one copy to our office.
If you have any questions or comments regarding the above information, please contact either one of us
at (763) 541 -4800.
Sincerely,
WSB & Associates
John Uphoff Brian J. Bourassa, PE
Economic Development Specialist Principal
Approval Signature
By:
Title:
Date:
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Proposal to Provide Professional Services for 2014/15 Market Matching Contract
2014 2015
Proposed Schedule
Proposed Methodology & Schedule Market Engagement Task
1st Quarter 1st Quarter3rd Quarter 4th Quarter2nd Quarter
Deliverable
DRAFT-
Housing Study
Presented to City
Council & EDA for
Comment
Greater MSP Greater MSP Greater MSP Greater MSP Greater MSP
DEED DEED DEED DEED DEED
EDAM EDAM EDAM EDAM
Central MN Initiative Foundation Central MN Initiative Foundation Central MN Initiative Foundation Central MN Initiative Foundation
Minnesota Chamber of Commerce Minnesota Chamber of Commerce Minnesota Chamber of Commerce Minnesota Chamber of Commerce
Wright County Economic Development Partnership Wright County Economic Development Partnership Wright County Economic Development Partnership Wright County Economic Development Partnership
Minnesota High Tech Association Minnesota High Tech Association Minnesota High Tech Association Minnesota High Tech Association
Central Minnesota Industrial Partnership Central Minnesota Industrial Partnership Central Minnesota Industrial Partnership Central Minnesota Industrial Partnership
SLUC SLUC SLUC SLUC SLUC
LMC LMC LMC LMC
NAIOP NAIOP NAIOP NAIOP
CoreNet Global CoreNet Global CoreNet Global CoreNet Global
ULI ULI ULI ULI ULI
Final-
Housing Study
Presented to City
Council & EDA
Deliverable-
Property Maps
Deliverable-
Property Maps
Deliverable-
Property Maps Deliverable-
Property Maps
Deliverable-
Property Maps
Deliverable-
Property MapsHousing StudyPresent Sales StrategyAssess Sales StrategyDELIVERABLES DEVELOPMENTECONOMIC DEVELOPMENT
AUTHORITY MEETING
WSB STAFF & CITY STAFF
BI-WEEKLY MEETING
CITY COUNCIL
MEETINGPROJECT MANAGEMENTMARKETENGAGEMENTReview &
Update Existing
Contract
Supporting Deliverable Tasks
Update Property
Availability Maps
Coordinate EDA/City Negotiations Team Deploy Sales Strategy Deploy Sales Strategy
Update Property
Availability Maps Update Property
Availability Maps
Update Property
Availability Maps
Update Property
Availability Maps
Update Property
Availability Maps
CC
CC CCCC CC CC CC CC CCCCCCCCCC CC
EDA
KEY
Overview of the Process
The following details our methodology for
completing the 2014/15 Market Matching Contract.
We have grouped the activities associated with
the project into three main categories, each with
associated tasks, meetings, and deliverables. All
of this is in addition to weekly market matching
efforts.
EDA
SM
SM
SM SM SM SM SMSMSM SMSMSM SM SMSMSMSMSMSMSMSMSMSMSMSMSM SM
EDA EDA EDA EDA EDA EDA EDAEDAEDAEDAEDAEDA
July August September October November December January February March April May June July
PROJECT MANAGEMENT
• WSB Staff will attend EDA and
City Council meetings on a monthly
rotating basis. The governing body
whose meeting is not attended
will receive an email update.
• WSB Staff will attend bi-weekly
meetings with City Staff.
• WSB Staff will provide weekly
updates to City Staff on
market matching efforts.
MARKET ENGAGEMENT
• WSB Staff will attend various
networking events to maximize
potential lead generation.
• WSB Staff will meet regularly with
developers, business owners and
builders to gain market insight and
maximize potential lead generation.
DELIVERABLES DEVELOPMENT
• Review property availability maps
every two months. Revised maps
to be made available to City Staff
by first Friday of each month.
• Weekly email update to City Staff.
• Bi-weekly meeting with WSB
Staff and City Staff.
• Monthly email updates from
WSB Staff to City Staff.
• Provide market matching materials
for deployment on City website.
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CITY OF
Monticello
Communication Plan
Monticello Market Matching Services
Project Communication Key Contacts:
Jeff O'Neill, City Administrator
Angela Schumann, Community Development Director
Rachel Leonard, Communications Coordinator
John Uphoff, Economic Development Specialist
Brian Bourassa, Economic Development Specialist
Kelsey Johnson, Community Planner
Eric Maass, Community Planner
(763) 271 -3215
(763) 271 -3224
(763) 295 -2711
(320) 534 -5951
(763) 287 -8536
(763) 287 -8521
(763) 270 -3463
Plan Element
Responsibility
Begin
End
Interval
Implementation
Weekly Email Updates to Staff:
WSB
7/16/14
Ongoing
Weekly —
WSB will provide Angela and Jeff with a weekly email update on:
Every Friday
• Activities that occurred during each week;
• People /businesses /developers WSB met with and their feedback;
• Events WSB attended;
• Progress towards goals; and
• Anticipated tasks for the next week
Bi- Weekly Staff Update Meetings:
City /WSB
7/16/14
Ongoing
Bi- Weekly-
WSB staff will meet with Angel and Jeff every 1st and 3rd Thursday of each
152 and 3rd
month (or a date agreed upon by the City and WSB) to discuss:
Thursday at
• Activity;
8:30am at
• Deliverables;
City Hall
• Upcoming events /tasks;
• Other information as necessary
Written Monthly Memo to Staff:
WSB
Due the 152
WSB will prepare a written memo summarizing:
Friday of
• Activity completed in the previous month;
each month
• People /businesses /developers engaged in the previous month;
• Events WSB staff attended and any feedback from those events;
• Progress toward goals;
• Market matching leads;
• Opportunity Tracker summary;
• Deliverables completed; and
A
WSB
& A ....... . ,,, 1,,,.
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• Action items for upcoming month.
Bi- Monthly Presentation to EDA and CC:
WSB
Ongoing
Bi- monthly
WSB staff will give an update of activities and deliverables completed to the
EDA and City Council on a bi- monthly, rotating basis. The policy making body
which is not attended that month will receive an email update on all market
matching activities.
Website Information:
City /WSB
Ongoing
Ongoing
WSB will prepare and provide the City with information to be posted on the
City's website related to available properties and market data. The City will
be responsible for putting this onto the Website.
City Economic Development Flyer:
WSB
Ongoing
Ongoing
WSB will deploy the previously prepared City of Monticello Economic
Development Flyer. This flyer will be used to market the City, specific parcels,
and aid in the RFI process.
Property Site Flyers:
WSB
Ongoing
Updated at
WSB will update Property Site Flyers for all EDA owned, City owned and
least every
privately owned parcels available within the City of Monticello. The
six (6)
"Downtown" parcels will be prepared to show a collective packaging of
months —
parcels rather than individual sites.
unless
needed
Chamber of Commerce Coordination:
WSB
Ongoing
Bi- monthly
WSB staff will periodically review the Chamber of Commerce website to
ensure property information within the City's Opportunity Tracker and all
Project Site Flyers are up -to -date.
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WSB