HomeMy WebLinkAbout02/08/2018 EDAC PacketCITY OF LINO LAKES
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING
Thursday, February 8, 2018
8:00 A.M.
Community Room
AGENDA
1. CALL TO ORDER AND ROLL CALL
A. Appoint Chair and Vice Chair
2. APPROVAL OF MINUTES. December 7, 2017
3. DISCUSSION ITEMS
A. Comprehensive Plan Update — Economic Development Plan
B. Year End Review
C. Project Updates
4. ADJOURN
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE
MINUTES
DATE: December 7, 2017
MEMBERS
PRESENT: Jim Schueller, Nathan Vojtech, Chad Wagner,
Don Johnson, Lou Masonick, Michael Ruhland, Patrick Kohler
MEMBERS
ABSENT: Julie Schwartz, Thomas Colgan
OTHERS PRESENT: Michael Grochala, Kirsten Barsness, Mara Strand
APPROVAL OF MINUTES
It was moved by Mr. Vojtech to approve the minutes from November 2, 2017. The motion was
seconded by Mr. Masonick and passed unanimously.
DISCUSSION ITEMS
A. Lino Lakes Tax Increment and Abatement Financial Incentives Policy (Cont.)
Ms. Barsness presented the red lined document and went through changes that were
made. The Board discussed components of the policy including equity to load ratio, market value
determinations, and determing public value of public improvements. The Board unanimously
approved the changes and updates made in the red lined document.
B. Comprehensive Plan Update
Mr. Grochala stated plan is moving through the update process. The Planning & Zoning
Board will receive draft chapters of the Comprehensive Plan early in 2018. He stated that
transportion is a key element in the plan. He noted that 35E MnPass lanes are now open and
additional lanes will be added to 35W starting in 2019.
Board members questioned what was planned for Birch Street. Mr. Grochala stated that
the Birch Street corridor study was finished in 2010 and identified improvements have already
been undertaken including the Ware/Birch signal, the access removal along the S curve and the
planned 2018 connection of Fox Road from the Foxborough Development to Saddle Club.
Mr. Grochala pointed out that the largest change in the Land Use Plan was the addition of a
Business Campus land use district on the 35E corridor.
C. Project Update
Mr. Grochala provided the following updates:
1. Lennar is proposing some changes to the product types in the Waterermark. This
was discussed at the December 3, 2017 City Council work session. Some Council
members expressed concerns regarding the changes.
2. The Morris Property Concept plan by 494 was discussed at the City Council
work session. The Council expressed interest in the project. Provision of public utilites
will likely be the primary hold up on development.
ADJOURNMENT
The meeting was adjourned at 8:51 AM.
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3A
STAFF ORIGINATOR: Michael Grochala
EDAC MEETING DATE: February 1, 2018
TOPIC: Comprehensive Plan Update — Draft Economic
Development Plan
BACKGROUND
The City's 2040 Comprehensive Plan Update kicked off with a joint City Council/Advisory
Board meeting on May 15, 2017. Additionally, the City held a community open house on June
22, 2017 and launched an online Community Survey that closed on June 23, 2017.
Landform, the City's Planning Consultant, is completing the draft plan for public review and
consideration by the City Council. A draft of the Economic Development Plan component is
attached for discussion by EDAC.
In addition to Goals and Policies the plan includes demographic information related to
employment trends and forecasts as well as travel patterns that influence development activity
within the City. Also incorporated into the plan are the four "Areas of Opportunity" identified
by EDAC as part of our 2014 Economic Development Strategic Plan process.
In addition to discussion on the ED Plan, staff will provide an overview of the recently
completed "Economic Development Business Recruitment Roadmap" prepared by Ady
Advantage for Connexus Energy. The Study included a broad range of research and survey
information across Anoka County leading to compilation of a county wide action plan. A copy
of the executive summary including a Lino Lakes site review is attached.
ATTACHMENTS
1. Draft Economic Development Plan, dated January 25, 2018
2. Executive Summary "Economic Development Business Recruitment Roadmap"
Chapter 5n. Econ
Development
C I T Y O F
- C ES
Introduction
The City of Lino Lakes is in an enviable economic development position in
the metro area. The community has many assets that set it apart from other
metro area cities and gives it an advantage in growing the local economy.
The city is one of the few cities to have interchange access on two interstate
highways and can therefore offer superior transportation convenience and
a wide range of commercial and industrial sites. The city has taken steps
in recent years to build upon these assets, expand the local economy and
upgrade the quality of design in its development. Residents have benefited
from a more diverse set of options for goods, services and employment
within the city limits. The regional profile of Lino Lakes will increase among
the commercial/industrial development community as its population grows
and competing sites closer into the Metropolitan Area's core are developed.
This chapter will:
• Set goals and policies for economic development
• Document some of the key indicators of the city's economy
• Describe available economic development assistance tools
• Describe the economic development priorities as established in the City's
Economic Development Strategic Plan
Chapter 12, Implementation, includes specific strategies/ action steps that
will help the city to achieve the goals and priorities.
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only
45
Goals and Policies
The vision statement, as described in Chapter 1, defines what Lino Lakes should look like in the future. The goals and policies that follow were established
in the 2030 Comprehensive Plan and reaffirmed as part of the 2040 Comprehensive Plan Process.
Goal 1: Expand and diversify the city's tax base by encouraging
commercial, industrial and mixed -use development to lessen the tax
burden on residential properties
Policies:
a. Encourage developers to take advantage of development
opportunities especially within designated redevelopment areas.
b. Establish guidelines for the appropriate inclusion of green spaces,
paths, sidewalks and other people -oriented amenities within
commercial areas and throughout the city.
c. Ensure commercial development is dispersed appropriately
throughout the community and in designated business
development areas.
d. Develop walkable neighborhoods with commercial nodes and
amenities for residents.
e. Integrate into neighborhoods those retail and service commercial
activities that serve the neighborhood.
Goal 2: Work with developers to identify innovative strategies for
attracting entry level and smaller entrepreneurial businesses to Lino
Lakes.
Policies:
a. Encourage new business owners and expanding entrepreneurial
businesses to locate here by offering available financial incentives
when consistent with city policy.
b. Work with the current business community, the Quad Area
Chamber of Commerce and the city's Economic Development
Advisory Committee to attract new businesses and expand the
economic success of existing businesses.
c. Promote Lino Lakes' identity as a business -friendly city.
C I T Y O F
- C E5
Goal 3: Attract and encourage new light industrial, high tech, business
and professional services enterprises and maintain and expand
existing businesses in Lino Lakes.
Policies:
a. Protect designated industrial areas from residential encroachment
and marginal land uses that will preclude the highest economic use
of land available for commercial and light industrial development.
b. Develop strategies and programs to attract high tech and high value
industrial and business and professional services enterprises that
have an emphasis on job creation.
c. Encourage high -end business park development designed to attract
medical, technology, and similar industries, which provide quality
employment opportunities and have low service demand for
municipal services.
d. Encourage a comprehensive business center with services such
as wi-fi access, office space, copy services, postal and overnight
delivery pick up, and telephone services to small and start-up
entrepreneurial business owners and telecommuters who can share
space and costs.
e. Continue to support local business retention and expansion
initiatives.
f. Recognize the fundamental linkage between housing and economic
development and work to match housing availability with
community employment.
g. Promote the Anoka County Airport as an asset to corporate users.
Goal 4: Promote efficient, planned commercial and industrial expansion
within the City's growth areas, accessible to public infrastructure and
transportation.
Policies:
a. Identify key commercial and industrial development opportunities
within the City's planned growth areas in locations with access to
major transportation systems.
b. Encourage compact commercial development that will make
efficient use of infrastructure and resources.
c. Require that new commercial, industrial, and developments may
only occur in sewered areas in accordance with the staging plan.
d. Promote the rehabilitation and redevelopment of existing
commercial facilities by continuing to pursue and make available
various financial programs and assistance.
e. Promote the development of a major regional commercial center
which would include various types of restaurants, shopping, and
entertainment venues for both adults and children.
f. Review and clearly define design standards to promote consistent
application and timely approvals for commercial and industrial
development.
g. Promote the use of "Green" building and low impact development
techniques in new development.
h. Ensure, as areas are developed, that a specific development project
bears its proportionate share of infrastructure improvement costs
to the fullest extent possible.
Goal 5: Promote Lino Lakes' location within the metropolitan region as
an advantage in doing business.
Policies:
a. Work to actively market Lino Lakes as a great place to live and
work.
b. Collaborate with business support organizations to serve the needs
to current and future businesses.
c. Consider the use of available financial incentives (i.e. TIF/tax
abatements/grants, etc.) to attract businesses to relocate or start up
in Lino Lakes.
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 46
Key Indicators
This section presents data about employment trends and forecasts, and about commuting and travel patterns, both of
which reflect and influence the city's economic development. Information on some of the other factors affecting the
local economy is also found in other plan chapters: for example age, education and income (Chapter 2, Community
Background); land use and development (Chapter 3, Land Use); and housing affordability (Chapter 4, Housing.)
Employment Trends and Forecasts
Table 5-1 and Figure 5-1 illustrate the historic and projected employment numbers since 1970 and through the
2040 planning period. Lino Lakes has experienced a very consistent residential and commercial growth rate with
approximately one local job for every two households This ratio is consistent with a suburban community that does
not have a large or diversified economy, commonly referred to as a "bedroom community". As the community grows,
the trendline shows a slight improvement, which would provide more opportunity for residents to work within the
community and provide residents with a greater diversity of goods and services.
Table 5-1. Lino Lakes Employment Trends and Forecasts
1970
1980
1990
2000
2010
2020
2030
2040
C I T Y O F
- C E5
Figure 5.1 Lino Lakes Employment Trends and Forecasts
7,000
0.70
Employment
Households
Jobs Per Household
430
812
0.53
6,000
0.60
771
1,388
0.56
5,000
0.50
1,229
2,603
0.47
2,671
4,857
0.55
4,000
0.40
3,313
6,174
0.54
4,700
7,300
0.64
3 000
0.30
5,300
9,000
0.59
2,000
0.20
6,000
10,600
0.57
1,000
0.10■
Source: Metropolitan Council
-
0.00
1970
1980 1990 2000 2010 2020 2030
2040
� Employment —Jobs Per Household
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 47
A closer look at employment over the last 16 years (2000 — 2016) shows how the
number of establishments (businesses or job locations) has fluctuated along with
employment and the average weekly wages of Lino Lakes jobs. Table 5-2 and Figure
5-2 show the effects of the Great Recession of 2007 to 2012. The number of
establishments, employment and even wages decreased in 2008 through 2010. The
trend in the last several years shows that employment and wages were starting to grow
again and now exceed pre -recession levels.
Table 5-2. Lino Lakes Employment and Wages, 2000-2016
Year
Employment
Establishments
Average Weekly Wage
2000
2,641
247
$ 661
2001
2,740
251
$ 665
2002
3,103
276
$ 685
2003
3,095
298
$ 695
2004
3,188
324
$ 728
2005
3,868
332
$ 723
2006
4,014
349
$ 764
2007
3,922
347
$ 769
2008
3,672
344
$ 776
2009
3,587
329
$ 712
2010
3,353
317
$ 698
2011
3,440
330
$ 732
2012
3,561
312
$ 758
2013
3,800
315
$ 786
2014
3,946
322
$ 788
2015
4,144
312
$ 811
2016
4,245
325
$ 850
Source:
Minnesota Department of Employment and Economic Development (DEED), Quarterly Census of
Employment & Wages (Annual)
ci i v hc�r
LINO L KES
Figure 5.2 Employment and Wages, 2000-2016
4,500 $900
4,000 $800
3,000 _ ' ' ' ' I I I I I $600
2,500 _ _ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ $500
2,000 $400
1,500 $300
1,000 $200
500 $100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Employment Establishments —Average Weekly Wage
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 48
Table 5-3 and Figure 5-3 show employment by industry in 2016, painting a picture of what sectors of the
economy provide jobs in Lino Lakes. The table compares Lino Lakes with the Twin Cities Region and the pie chart
illustrates employment in Lino Lakes only. Lino Lakes has many of its jobs in the construction, manufacturing,
public administration and retail trade industries, at higher percentages than found in the region. Lino Lakes had a
significantly lower percentage of jobs than the region in the health care and social service and educational services
sectors. This information provides some insight into how employment in Lino Lakes might be impacted by
downturns in certain economic sectors (such as manufacturing) or what types of businesses the city may want to
encourage to diversify the local economy (such as health care or information.)
Table 5-3. Employment by Industry, 2016
Lino Lakes
Twin Cities Region (7-County)
Industry
Number
%
Number
%
Accommodation and Food Services
301
7%
136,687
8%
Administrative and Support and Waste Manage-
35
1 %
96,629
6%
Agriculture, Forestry, Fishing and Hunting
38
1 %
2,871
0%
Arts, Entertainment, and Recreation
11
0%
32,210
2%
Construction
496
12%
67,603
4%
Educational Services
75
2%
130,676
8%
Finance and Insurance
70
2%
103,801
6%
Health Care and Social Assistance
336
8%
259,652
15%
Information
0%
37,253
2%
Management of Companies and Enterprises
0%
69,709
4%
Manufacturing
580
14%
169,480
10%
Mining
0%
654
0%
Other Services (except Public Administration)
307
7%
56,568
3%
Professional, Scientific, and Technical Services
206
5%
124,928
7%
Public Administration
617
14%
69,398
4%
Real Estate and Rental and Leasing
81
2%
26,558
2%
Retail Trade
622
15%
167,009
10%
Transportation and Warehousing
161
4%
66,658
4%
Utilities
0%
6,151
0%
Wholesale Trade
323
8%
80,389
5%
Total, All Industries
4,259
100%
1,704,883
100%
Source: Minnesota Department of Employment and Economic Development
(DEED), Quarterly Census of Employment & Wages (Average of Four
Quarters)
ciiti :car
LNOLAKES
Figure 5.3 Lino Lakes Employment by Industry, 2016
Transports
Retail Trade
15%
Real Estate and Rental
Leasing
2%
Public Admi
14°
Accommodation and Food
Services
Administrative and Support and Waste
Management and Remediation Services
i ecnnicai bervices _..._. _.....--- ..__r.-
5% Administration)
7%
DRAFT Jan25-18
ishing and Hunting
and Recreation
-uction
ucational Services
2%
Finance and Insurance
2%
-alth Care and Social Assistance
8%
Lino Lakes Comprehensive Plan Update
for review only
Chapter 5: Economic Development 49
Commuting and Travel Patterns
Because Lino Lakes is part of the larger Twin Cities Metropolitan area, city residents can and
do take advantage of employment opportunities throughout the region. Most Lino Lakes
residents in the labor force work outside of the city. Similarly, Lino Lakes businesses draw
their workers from the wider region.
Transportation is a key factor for business location. On one hand, the city's unique location
at the intersection of two major interstate highways (1-35E and I-35W) provides access to
and from both Minneapolis and St. Paul downtowns and to the rest of the region, allowing
employers to draw workers from the wider region and for Lino Lakes residents to access
employment opportunities. Good transportation makes the city attractive to new businesses
(and new home buyers.) On the other hand, as commute times increase, and as travel time to
major regional attractions (such as the two downtowns and the Mall of America and similarly
to the international airport) increase, employers may find the community less attractive.
Residents desiring shorter commutes, or alternatives to driving alone, may decide to move or
not purchase homes in the city if their commute becomes too difficult or transit options are
not available. But if the local economy continues to grow and diversify, more opportunities
for local employment should be available to residents, which could have a positive impact on
overall commute times and ultimately the quality of life. More local jobs would also increase
the daytime population of the city, attracting service and retail businesses available to workers
and residents alike and further reducing the need to leave the city.
Tables 5-5 and 5-6 show the top ten workplaces of people who live in Lino Lakes (the
"Commuteshed") and the top ten residences of people who work in Lino Lakes (the
"Laborshed") in 2014. The data illustrates the mobility of Lino Lakes residents; only 4%
worked within the city of Lino Lakes. While many of them worked in nearby communities,
the greatest numbers commuted to the central cities of Minneapolis or St. Paul. Of the
jobs located within Lino Lakes, only 15% were held by Lino Lakes residents. Many of the
employees came from nearby communities, but almost half came from "other" locations —
residences not in the top ten —indicating that employers draw workers from the wider region.
The data in these tables give an approximation of commuting patterns. The Census Bureau
counted wage & salary jobs covered by unemployment insurance. Business owners, self-
employed persons, some temporary workers, family farmers, military personnel, and others are
typically are not covered, and thus not counted.
C I T Y O F
- C E5
Table 5-4. Lino Lakes "Commuteshed" (2014)
Top ten workplaces of people
who live in Lino Lakes, 2014
Workplace
Minneapolis
St. Paul
Blaine
Lino Lakes
Roseville
Fridley
Maplewood
Arden Hills
Shoreview
White Bear Lake
Workers
1,616
1,155
960
439
417
387
329
292
285
253
4%
3%
3%
3%
3%
Other 3,963 39%
Total 10,096 100%
Note: Workplaces and residences not in the top 10 are counted
in "Other".
Source: U.S. Census Bureau Local Employment -Household Dynamics.
Table 5-5. Lino Lakes "Laborshed" (2014)
Top ten residences of people
who work in Lino Lakes, 2014
Residence
Lino Lakes
Blaine
Forest Lake
St. Paul
Coon Rapids
Hugo
Minneapolis
Ham Lake
Circle Pines
Columbus
Other
Workers
439
293
152
124
118
107
91
83
78
63
1,360
15%
10%
5%
4%
4%
4%
3%
3%
3%
2%
47%
Total 2,908 100%
Note: Workplaces and residences not in the top 10 are count-
ed in "Other".
Source: U.S. Census Bureau Local Employment -Household Dynamics.
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 50
Residents of Lino Lakes use private transportation almost exclusively to reach their
employment. Table 5-6 and Figure 5-4 show how Lino Lakes residents traveled to work
in 2015, and compares it with the Twin Cities Region. Lino Lakes residents were more
likely to drive alone (86% vs 77% in the region) and less likely to have carpooled or
used public transportation. About the same percentage worked at home as in the region
(5%.)
Table 5-6. Transportation to Work, 2015
Figure 5.4 Transportation to Work, 2015
Lino Lakes
Twin Cities Region (7-County)
Number %
Number %
Drove alone
9,274 86%
1,200,250 77% Twin Cities Region (7-County)
Carpooled
591 5%
128,244 8%
Worked at home
530 5%
77,317 5%
Public transportation
291 3%
81,663 5%
Walked
62 1 %
36,089 2% Lino Lakes
Other means
58 1 %
28,541 2%
Total
10,806 100%
1,552,104 100%
0% 10% 20% 30% 40% 50% 60%
Source: American Community Survey 5Yr Summary File 2011-2015
Because most residents must leave the city for employment they spend longer than
average times commuting to and from work. Table 5-7 and Figure 5-5 show that
commute times have been increasing for Lino Lakes residents (and everyone in the
region.) Table 5-8 and Figure 5-6 break down travel time for 2015, showing that
Lino Lakes residents were less likely to have shorter than average (25 minutes or less)
commute times, and many residents endure commutes of 45 minutes or longer.
Table 5-7. Average Travel Time to Work (Minutes)
Census1990
Census 2000
ACS 2006-2010
ACS 2011-2015
C I T Y O F
LN0 ES
Lino Lakes Residents
24.8
26.7
26.3
27.1
Twin Cities Region (7-County)
20.76
23.03
23.56
24.32
Source: U.S. Census Bureau Decennial Census and American Community Survey
70% 80% 90% 100%
■ Drove alone ■ Carpooled ■ Worked at home ■ Public transportation ■ Walked ■ Other means
Figure 5.5 Average Travel Time to Work (Minutes)
Census1990 5 ==so
Census 2000 mhw��
ACS 2006-2010
ACS 2011-2015
0 5 10 15 20 25 30
■ Twin Cities Region (7-County) ■ Lino Lakes Residents
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 51
Table 5-8. Travel Time to Work, 2015
Figure 5-6. Travel Time to Work, 2015
Lino Lakes
Twin Cities Region (7-County)
Less than 10 minutes
Number
%
Number %
Less than 10 minutes
790
8%
148,982 10%
10 to 14 minutes
10 to 14 minutes
955
9%
190,409 13%
15 to 19 minutes
15 to 19 minutes
1,074
10%
236,982 16%
20 to 24 minutes = i
20 to 24 minutes
1,660
16%
260,314 18%
25 to 29 minutes
25 to 29 minutes
931
9%
129,001 9%
30 to 34 minutes
30 to 34 minutes
2,108
21%
227,705 15%
35 to 44 minutes
1,277
12%
114,723 8%
35 to 44 minutes
45 to 59 minutes
984
10%
102,383 7%
45 to 59 minutes
60 or more minutes
497
5%
64,288 4%
60 or more minutes
Total
10,276
100%
1,474,787 100%
0% 5% 10% 15% 20%
American
Community Survey 5Yr Summary File 2011-2015
■ Twin Cities Region (7-County) ■ Lino Lakes
More local job opportunities would reduce the need for Lino Lakes residents to leave the city for
employment. As commutes become more difficult, Lino Lakes residents may look for alternatives
to driving alone, such as transit or carpooling. Housing close to job opportunities will be more
desirable and also reduce the need for long commutes. Balancing employment growth with
transportation and housing development will help make Lino Lakes more attractive to businesses
and residents alike.
Table 5-9 and Figure 5-7 show travel time from Lino Lakes to selected destinations in the region.
Travel times to the Mall of America and the Minneapolis and St. Paul Central Business Districts
have increased since 2005 and will continue to get longer between now and 2030.
The Mall of America is included because data for the International Airport is not available but it
is nearby the Mall. Travel time to the airport may be important to some businesses, which may be
discouraged from locating in Lino Lakes as travel times increase. However, the city's proximity to
general aviation airports (including Anoka County/Blaine) may be seen as an advantage by others.
C 1 1 Y O
Lh
NdKES
Table 5-9. Travel Time from Lino Lakes to Selected Destinations
Destination
2005 2010 2020 2030
AM (6-9)
Mall of America 68.61 61.42 81.74 87.95
Minneapolis Central Business District 53.16 51.73 62.42 68.35
Saint Paul Central Business District 39.75 39.92 50.38 55.5
PM (3-7)
Mall of America 69.86 72.11 80.35 82.38
Minneapolis Central Business District 41.61 44.24 48.8 50.78
Saint Paul Central Business District 30.89 31.69 35.06 35.56
Source: Metropolitan Council Travel Demand Forecasting Model, 2010
DRAFT Jan25-18
25%
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 52
Figure 5-7. Travel Time, Lino Lakes to Selected Destinations, AM Peak
(Minutes)
100
90
80
70
60
50
40
30
20
10
0
2005 2010
■ Mall of America
C I T Y O F
- C E5
■ Minneapolis Central Business District
2020
2030
Saint Paul Central Business District
Economic Development Assistance
Statutory Authority
Minnesota cities have a large array of powers and tools for assisting and encouraging economic development. Some
key sources of statutory authority come from the following:
• Constructing public improvements and levying special assessments — Chapter 429
• Constructing, operating, and maintaining water, sanitary sewer and storm water utility systems — Section 444.075
• Creating and using special service districts — Sections 428A.01 through 428A.101
• Creating and using housing improvement areas — Section 428A.11
• Establishing and using tax increment financing districts — Sections 469.174 through 469.1791
• Making and using tax abatement levies — Sections 469.1812 through 469.1815
• Powers granted to cities through housing and redevelopment authorities — Sections 469.001 through 469.047
• Powers granted to cities through economic development authorities — Sections 469.090 through 469.1081
• Lease financing for real and personal property — Section 465.71
Every statutory power contains a unique set of authorizations and restrictions. In some cases, the city may have
several options. For example, public improvements can be financed with special assessments, special service
districts, housing improvement areas, tax abatement, and tax increment financing. The tools are interrelated, and
the city may use several for one project. To evaluate the use of potential statutory powers, the city should find the
answers to the following questions:
• Who can use the powers? Most municipal powers are granted directly to the city council directly, but some may
reside only or optionally with another entity, such as a housing and redevelopment authority (HRA) or economic
development authority (EDA).
• How do the powers function? Every municipal development power carries different requirements and
procedures, which may have advantages or disadvantages in each situation. For example, tax increment financing
involves a complex set of statutory requirements. Property owners must petition to start the process for
establishing a special service district. Property tax abatement discussions should involve the county and school
district.
• Does the power provide funding capacity? Some statutes offer access to revenue or debt financing. When
evaluating these tools, the city will need to ask:
• What revenues are authorized?
• How can the revenues be used?
• Can the city issue the bonds as "general obligations," achieving the lowest interest rates?
• Do the bonds count against the city's debt limit?
• What approvals are needed to authorize use of these powers?
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 53
Finance Tools
The investment of public dollars to achieve economic development objectives should be guided by several key principles:
• Financial resources are limited. The city has limited funding to apply to economic development initiatives, so the use of resources must be targeted to
achieve the greatest effect on the community.
• Financial decisions require long-term perspective. The current use of financial resources may reduce monies available in the future. In evaluating
short-term opportunities, it is important to question the long-term impact on community development.
• Public funds should lead to private investment. While this section focuses on public finance actions, economic development cannot become reality
without private investment. The use of public funds should be targeted to actions that encourage private investment in Lino Lakes.
Figure 5-8 lists some of the tools that are available to the City of Lino Lakes. Each finance tool
has unique requirements which are subject to constant state and federal law changes. Each one
creates different obligations on the part of the city. For example, the city takes the lead with
tax increment financing, and will have on -going administrative responsibilities. If certain city
assistance qualifies as a business subsidy under state law, the city will need to establish, monitor
and annually report on achievement of job and wage goals. Using some other tools (such as
an industrial revenue bond) may have minimal city reporting on monitoring requirements
once they are established, but may be subject to state allocations administered by the state
Department of Employment and Economic Development (DEED) when they are issued.
Some of the available tools do not provide direct assistance or subsidies to businesses at all,
but can still be used to encourage economic development. For example, the city can invest in
its utility and roadway systems to make development possible and spur private investments that
further the city's goals.
Lino Lakes' Charter places some limitations on using special assessments as an economic
development tool compared to other communities. The City Charter contains a process to
allow property owners to use petitions to protest a special assessment project and prevent it
from occurring if there is sufficient opposition. In addition, if the proposed special assessment
is for less than 100% of the cost of the improvement, a citywide vote is required.
C I T Y O F
LNC E5
Figure 5-8. Economic Development Tools
• Tax Increment Financing
• Property Tax Abatement
• Special Assessments
• Special Service Districts
• Housing Improvement Area
• Utility Revenues
• DEED Grant and Loan Programs
• Street State Aid
• Street Reconstruction
• Lease Revenue Bonds
• Capital Improvement Bonds
• EDA/HRA Tax Levies
• Industrial Revenue Bonds
Economic Development Priorities
In 2014 the City evaluated the opportunities for economic growth within
Lino Lakes, representing the various types of development currently facing
the community: housing, commercial, industrial and redevelopment. The City
developed priorities based on a review of each area's positive aspects and
potential challenges. Four areas of opportunity were identified.
• Development and implementation of a Business Retention and
Expansion Program (BRE)
• Lino Lakes Town Center, located at Interstate 35 and Lake Drive
• Redevelopment of the intersection of Hodgson Road (CSAH 49) &
County Road J (Ash Street)
• The Commercial and Industrial Corridor along Interstate 35E and
County Road 14
Business Retention and Expansion
Retention and expansion of key businesses is an important strategy
in promoting continued economic growth. It is an avenue by which
communities promote reinvestment and facilitate employment growth. By
establishing a formal Business Retention and Expansion (BRE) Program,
Lino Lakes can enhance its relationship with key existing businesses. The
BRE is an avenue to gather information about local business activity,
anticipate changes in a company's status, and work to retain the businesses
that provide the greatest positive economic impact.
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 54
Lino Lakes Town Center
The I-35W/Lake Drive interchange represents the City's Town Center.
Within the Town Center, commercial land uses are proposed at all four
quadrants of the freeway interchange. The city intends the Town Center area
to become a commercial and civic focal point for the community.
The SE quadrant of I-35W/Lake Drive interchange 1-35W/Lake Drive
interchange represents the mixed -use section of the Lino Lakes Town
Center. This area, developed in 2004 as "Legacy at Woods Edge", is
intended to integrate a mixture of commercial, medium and high density
residential, and public land uses in an attractive and cohesive design. City
hall, a YMCA, and a community green emphasize the community focus. A
complete "Design and Development Guide" has been adopted to support
the community's vision and establish standards for all development within
the area. The project was a causality of the Great Recession and the property
reverted to the State of Minnesota due to tax delinquency.
In 2013 the City's Economic Development Authority obtained ownership
of the remaining 20 acres though special legislation, allowing for greater
authority in determining the type and timing of development. Lino Lakes'
ability to be flexible both on land sale pricing and type of development,
plus the potential to assist with financing gaps will ultimately facilitate a
development plan that meets the city's goals. 1n 2015 the EDA facilitated the
sale of 11 acres to a national builder for the completion of the town home
area in the northeast quadrant of the site consistent with the development
master plan. Approximately 9 acres remain. The city may wish to consider
rebranding the site as part of its continued marketing efforts.
Interstate 35E and County Road 14 Corridor
The Interstate 35 Corridor, centered on County Road 35E represents the
City's largest potential for commercial and industrial development. With over
3 miles of interstate frontage on both sides of the interstate the site offers
excellent visibility and access for commercial and industrial development.
C I T Y O F
- C ES
Located equal distance from existing market hubs of Vadnais Height (County
Road E) and Forest Lake, the interchange area provides principal access to
growing markets of Lino/Centerville and Hugo/south Forest Lake.
The city has previously undertaken both planning and infrastructure
improvements in the area to prepare for and facilitate commercial and
industrial development. The 35E Corridor Alternative Urban Areawide
Review (AUAR) was completed in 2005 and continues to be updated.
The City partnered with Anoka County to reconstruct the
I-35E/Main Street interchange in 2010. The city is currently
completing a Comprehensive Stormwater Management Plan
to address storm water management deficiencies in the corridor covering
approximately 1,300 acres. The 2040 Land Use plan also includes the
establishment of a Business Campus designation to provide for the high -
quality, integrated development of a wide range of business uses.
Figure 5-9. Lino Lakes Town Center
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 55
Hodgson Road (CSAH 49) & County Road J (Ash Street)
Redevelopment of this area would have several community benefits. Suited
toward smaller scale neighborhood development, the site is located at the
southern gateway to Lino Lakes. Positive aspects to redevelopment include
the elimination of blight, addition of new goods and services, and increased
tax base. Challenges include the collaboration of multiple cities and counties,
infrastructure construction and lower densities that surround the area. The
site has been highlighted in past Lino Lakes' economic development plans.
Recently, neighboring Shoreview has studied the area for redevelopment
potential as part of a transitional corridor study. Collaboration with
Shoreview is critical to effectively redevelop the area. Additionally, there are
outside financial resources that can be researched and grant funds sought to
help facilitate investigation, acquisition and site improvements.
The Hodgson Road & CR J Master Planning Study was approved by the
City Council in 2007. The plan establishes a general land use design, but
does not mandate the exact site layout or specific uses of individual parcels.
The design of individual development projects must accommodate the
infrastructure needs for the larger study area. Future amendments of the
Plan may be appropriate to address evolving community needs, market
forces, and regulatory requirements.
The city has completed a master utility plan for the development area in 2014
and is proceeding with planning for trunk utility improvements to service the
area. The City also worked with a property owner to facilitate demolition of
an existing substandard building in the northwest quadrant to help set the
stage for future development.
C I T Y O F
- C ES
Figure 5-10. Hodgson Road & Country Road J Master Plan, 2007
rovi# an 6),c� rs
parotrnt� resi�enit,Xt
connect tv existinq
ant proposed traits
plan f'oramix
i o145i" t�j
a
4e5 n new streets and intersections
tope sa fe anr� pedestrianiien�ltj �'
connect residential streets
W
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conserve ej protect
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antve9etation
1
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MAan� intersection itnprOVeP"nts will inctU7 t
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pnana9etm,en wit�i. N,,et�ians avrR tiynstet� entrij points
0 100 200 400
CONCEPT PLAN Lino Lakes, MN
Master Planning Study for County Road J & Hodgson Road
DRAFT Jan25-18
Lino Lakes Comprehensive Plan Update
for review only Chapter 5: Economic Development 56
Anoka County, MN
Economic Development Business Recruitment Roadmap
December 18, 2017
Provided to:
Bruce Sayler
Principal - Community and Economic Development
Connexus Energy
1461 Ramsey Blvd. NW
Ramsey, MN 55303
763.323.2685 o/ 763.350.5119 m
Bruce.sayler@connexusenergy.com
Advantage
� J
Provided by:
Janet Ady
President and CEO
Ady Advantage
301 S. Blount Street, Suite 103
Madison, WI 53703
608.663.9218 o/608.345.2510 m
iady@adyadvantage.com
Table of Contents
Section 1: Executive Summary
Section 2: Introduction
Section 3: The Anoka County Regional Economy
Section 4: Site Visit Analysis
Section 5: Stakeholder & Employer Input
Section 6: Target Industry Analysis
Section 7: Regional and Target Industry Positioning
Section 8: Goals for the Future
Section 9: Best Practices
3
13
16
31
43
55
172
185
187
Section 10: Economic Development Business Recruitment Roadmap 194
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2
SECTION 1: EXECUTIVE SUMMARY
•AAdvantage
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Executive Summary
Ady Advantage was retained by Connexus Energy to create an economic development business recruitment roadmap. The following graphic
shows the various elements to this project.
PHASE 1: DISCOVER��
• Project Initiation Teleconference
• Desk Research/Economic Base Analysis
• Site Visit and Stakeholder Interviews
• Target Industry Analysis
• Regional Positioning Statement
• Target Industry Positioning
• Initial Report
PHASE 2: DISTILL FAI
• Vision and Goals Session
• Gap Analysis
• Best Practices Review
PHASE 3: DO
• Economic Development Strategy with
Implementation Plan
• Final Presentation
This process consisted of on -site qualitative research with stakeholders and employers, desk research on the Anoka County economy and target
industries, and the creation of positioning points for the region and for each target industry. The following pages serve as a summary of these
findings.
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Executive Summary
STAKEHOLDER AND EMPLOYER INPUT
During the on -site visit Ady Advantage conducted interviews with nearly 20 stakeholders to gain input. The stakeholders included a mix of local
businesses, local economic developers, educational institutions and workforce representatives, real estate representatives, etc. These
individuals provided input on strengths, weaknesses, opportunities and threats in the region. The following key themes emerged:
• Positive perceptions of the county revolve around doing business in the county and quality of life. Proximity to Minneapolis/St. Paul is a
benefit to businesses as well as residents from a quality of life perspective. Other business advantages include supply chain opportunities,
work ethic of employees and business engagement in the community. From a quality of life perspective, perceptions are that Anoka County
has a variety of housing options available and good public schools. Many of the communities are also perceived to be safe with low crime and
low poverty.
• The biggest negative perception of the county is that anything north of Minneapolis/St. Paul is extremely remote and rural, and that there is
only blue collarjobs in this area.
• Talent is currently one of the biggest challenges for local employers, both attracting and retaining talent. The local educational institutions in
the region have done a good job of responding to employers' needs, however, employers are competing for labor with Minneapolis/St. Paul.
• The biggest opportunities that stakeholders see for the county include changing the negative perceptions of the county, continuing to
improve transportation infrastructure and developing clarity and cohesiveness between the cities and the county.
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P�
Executive Summary
ANOKA COUNTY'S REGIONAL POSITIONING
The following asset maps depict key business costs and conditions and their importance in a business location decision, as well as how well
Anoka County does on each factor. Essentially the assets in the upper right hand quadrant become the county's positioning and the assets in the
upper left hand quadrant become the gaps that need to be improved, if in Anoka County's control.
GENERAL CONDITIONS ASSET MAP
GENERAL BUSINESS COSTS ASSET MAP Availabilityof
Availability of Availability of Workforce Productivity &
Low -skilled Skilled/Advanced Low -Skilled LaborSemi-Skilled Labor
Labor Cost High -skilled Professional/Technical Work Ethic
Labor Cost Labor Cost Labor
Gas Cost Electric Cost
Manufacturing
Tax Burden
Z
O
Sales Tax H
U
W
Incentives a
N
N
W
Z
Property Tax H
m
Payroll Costs O
W
Cost of U
Living ZQ
H
O
a
Hwy Access
Buildings Sites Air Access
4 Year Ed. 2 Year Ed.
Attainment HSAttainment Attainment
Diversity of Access to Pop.
Higher Ed. Re Enviro
Rail Access g• Tech and
Community
Higher Ed. Student Colleges
Pipeline
Port Access
Population
Growth
Natural Disaster
Risk
ANOKA COUNTY REGION COMPETITIVENESS ANOKA COUNTY REGION COMPETITIVENESS
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Executive Summary
TARGET INDUSTRY ANALYSIS
In order to determine which specific industries drive Anoka County's economy, a 6-digit NAICS code analysis was conducted on a number of
industry groups. After analyzing and screening these industries, we came up with the following recommended target industries for Anoka
County:
Target Industry
Subsectors of Focus
Comments
Medical Device Manufacturing
' The medical device supply chain is well developed in the region.
and Related Industries
' Technologic advances in medical devices are creating opportunities for metal and
advanced materials fabrication and precision instrument manufacturing.
• Plastics manufacturing technologies are well established in the region
Plastic Product Manufacturing
• Producers are aligned with both advanced devices (e.g. medical devices) and
commodity parts (e.g. food machinery, farm equipment, transportation equipment)
• Instrumentation and measuring devices are critical to manufacturing precision
Instrument Manufacturing
products including medical devices.
Light Manufacturing
• There is growing demand for precision instruments.
• The region has a strong tradition for precision machining and the fabrication of metal
Metal Working, Machining and
and other specialized materials.
Specialized Materials
• Advanced materials, such as carbon fiber, are growing in importance within the global
economy.
• Minneapolis/St. Paul region has a long history around innovation and manufacturing
Chemical Manufacturing
of adhesives and other industrial supply chain specialty chemicals.
• Advances in medical devices, pharmaceuticals, coating technologies are present in the
region and align with Anoka County skill sets.
Heavy Manufacturing
Machinery Manufacturing
' This includes machinery related to existing industries in the region including food
processing and material handling equipment, and farm machinery.
Specialized Distribution and
' The big box -type fulfillment centers are more likely to locate south of the city for better
Distribution and Trucking
Warehousing
access to market; however, Anoka County has seen some small specialty distribution
going on in the region and smaller trucking operations.
• Data centers are big users of electricity and Anoka County has the infrastructure to
Data Centers
Smaller data centers
support this. However, this industry also requires fiber access, which is only available
in some parts of the county. Recruitment should be limited to only those areas.
Medical services
• Some available buildings for this; however, there will need to be a better inventory of
Back Office
Call centers
these buildings in the future in order for Anoka County to realistically recruit this
industry.
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Executive Summary
GOALS AND VISIONING
The goals for the future were determined and thoroughly discussed during a Goals and Visioning work session on Wednesday, October 11. To
ensure that stakeholder input was significantly considered in this process, Connexus Energy invited a number of key stakeholders.
Address and work to change the
perception of Anoka County,
among stakeholders, partners,
developers, potential talent, etc.
Ensure Anoka County is
ready for development from
both a talent and product
(sites and buildings)
perspective.
T
Clearly define roles within
the county, as well as with
regional partners, as it
relates to marketing,
incentives, business
retention and expansion,
etc.
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Executive Summary
ECONOMIC DEVELOPMENT STRATEGIES
The following strategies were developed to help Anoka County meet its three goals, as outlined on the previous page. The strategies fall into the
categories of alignment/regionalism, readiness and marketing. Tactics within each strategy can be found in the final section of this report -
Economic Development Business Recruitment Roadmap.
Alignment/Regionalism IN
OF ]I
Goal #1: Address and work to Goal #2: Ensure Anoka
Goal #3: Clearly define roles
within the county, as well as
change the perception of Anoka County is ready for
with regional partners, as it
County, among stakeholders, development from both a
relates to marketing,
partners, developers, potential talent and product (sites and
incentives, business retention
talent, etc. buildings) perspective.
and expansion, etc.
Articulate roles and responsibilities of Anoka
County, Connexus Energy, and each
local/regional economic development partner to
X
XXX
help avoid duplication of efforts, identify gaps,
and reach consensus on project coordination
protocols.
Communicate regularly with economic
development partners and other stakeholders
about economic development initiatives,
X
XX
business news, county -wide successes, and
quality of life improvements.
XXX: Primary effect on goal XX: Direct effect on goal X: Indirect effect on goal
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Executive Summary
ECONOMIC DEVELOPMENT STRATEGIES (CONT'D)
Readiness
Goal #1: Address and work to
Goal #2: Ensure Anoka Goal #3: Clearly define roles
change the perception of Anoka
County is ready for within the county, as well as
County, among stakeholders,
development from both a with regional partners, as it
partners, developers, potential
talent and product (sites and relates to marketing,
incentives, business retention
talent, etc.
buildings) perspective.
and expansion, etc.
Product Readiness
Ensure sites and buildings are listed in LOIS or
another sites and buildings database and
X
XXX
X
information is accurate and up-to-date.
Determine the next sites/buildings for short-
term, medium -term and long-term development
XXX
X
that meet the needs of the target industries (as
identified in this report)
Develop and maintain relationships with local
XX
XX
developers and real estate brokers.
Re-evaluate the city and county incentive
XXX
X
policies to ensure they align with future goals.
Talent Readiness
Continue to explore what Greater MSP is doing
XXX
X
with regard to talent, and participate selectively.
Identify any gaps related to the Anoka County
talent strategies and develop approaches to
X
XXX
address.
XXX: Primary effect on goal XX: Direct effect on goal X: Indirect effect on goal
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Executive Summary
ECONOMIC DEVELOPMENT STRATEGIES (CONT'D)
Marketing/Diff r n i
tion J F1
Goal #1: Address and work to
Goal #2: Ensure Anoka Goal #3: Clearly define roles
change the perception of Anoka
County is ready for within the county, as well as
County, among stakeholders,
development from both a with regional partners, as it
partners, developers, potential
talent and product (sites and relates to marketing,
incentives, business retention
talent, etc.
buildings) perspective.
and expansion, etc.
All Audiences
Using this economic development plan as a base
of information, outline the key assets of the
XXX
X
region from both a talent and business
retention/development perspective.
Communicate a consistent county -wide
XXX
XX
economic development brand.
Internal Stakeholders
Market the key assets of Anoka County to
internal stakeholders to ensure that everyone is
XXX
X
communicating a consistent message about the
county and region.
Partners
Market the key assets of Anoka County to
partners so that they are aware of the unique
XXX
assets of the county, as well as the types of
projects Anoka County is best suited for.
XXX: Primary effect on goal XX: Direct effect on goal X: Indirect effect on goal
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Executive Summary
ECONOMIC DEVELOPMENT STRATEGIES (CONT'D)
Marketing/Differentiation Ed
Goal #1: Address and work to
Goal #2: Ensure Anoka
Goal #3: Clearly define roles within
change the perception of Anoka
County is ready for
the county, as well as with
County, among stakeholders,
development from both a
regional partners, as it relates to
partners, developers, potential
talent and product (sites and
marketing, incentives, business
talent, etc.
buildings) perspective.
retention and expansion, etc.
Existing Businesses
Help existing businesses continue to grow in Anoka
XXX
XX
County.
Ensure existing businesses are aware of local,
regional and state programs/initiatives that would
XXX
X
benefit their business.
Developers/Real Estate Brokers
Market the key assets of Anoka County to
local/regional developers and real estate brokers
so they are aware of the S&B product in the county,
XXX
as well as the target industries that are best suited
for Anoka County.
Site Selectors
jr
Market the key assets of Anoka County to site
selectors who work in the target industries
XXX
identified in this report.
Target Industries
Communicate the benefits of doing business in
7
Anoka County to companies within the specific
XXX
target industries identified in this report.
Identify companies in the recommended target
XXX
XX
industries to attract to Anoka County
XXX: Primary effect on goal XX: Direct effect on goal X: Indirect effect on goal
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Site Visit Analysis - Clearwater Creek Business Park - Lino Lakes
Strengths
• Mix of sites apparently n
development
• Build -to -suit properties
N. are needed in the mai
• New Main St/1-35E inter(
improved 21st Street N.
Weaknesses
• Possible presence of we -
could limit developmen,
No asking price provide(
Limited information on
parcel
Unattractive industrial sLura%e
operations on 21st Street North
are incompatible with quality
development
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