HomeMy WebLinkAbout11-21-2008 CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT COMMISSION MEETING AGENDA
MOUNDS VIEW CITY HALL
FRIDAY, NOVEMBER 21, 2008
7:30 A.M.
1. CALL TO ORDER
2. ROLL CALL Chair Helgemoe, Vice Chair Meehlhause, Commissioner Belting,
Commissioner Entsminger, Commissioner Johnson, Commissioner
Larson, Commissioner Wagner, Community Development Director Ken
Roberts and Economic Development Specialist Heidi Steinmetz
3. APPROVE NOVEMBER 21, 2008 EDC AGENDA
4. APPROVE AUGUST 15, 2008 EDC MINUTES
5. SPECIAL BUSINESS
6. EDC BUSINESS
• 7. REPORTS OF COMMISSIONERS
A. Commissioner Belting - Term Expires on December 31, 2008
8. REPORTS OF STAFF
A. Continue Discussion Regarding EDCs Becoming EDAs
B. Final Version of Economic Development Chapter of Comprehensive Plan
C. Mounds View Branding Project Update
D. Select Senior Living Update
E. Mermaid Corner Update
F. Harland Clarke Closing
G. Dealsmart to Occupy Former Petters Space
H. Recap of C.G. Hill & Sons Tour
9. UPCOMING EDC MEETINGS
• Cancel Next Regular EDC Meeting: December 19, 2008 at 7:30am
• Joint Meeting with EDA/Council: Monday, January 5, 2009 at 6:00pm
• Regular EDA Meeting: Friday, January 16, 2009 at 7:30am
• Joint Meeting with EDA/Council: Monday, February, 2, 2009 at 6:00pm
• 10. ADJOURNMENT
• Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
August 15, 2008
City of Mounds View, Council Chambers
2401 Highway 10, Mounds View, MN 55112
1. CALL TO ORDER:
Vice Chair Gary Meehlhause called the meeting to order at 7:33am
2. ROLL CALL:
Members Present: Vice Chair Gary Meehlhause, Commissioners Jackie Entsminger,
Torri Johnson (arrived at 7:55 a.m.), Dan Larson and Jennifer
Wagner
Members Absent: Chair Jason Helgemoe and Commissioner Belting
Staff Present: Community Development Director Ken Roberts and Economic
•
Development Specialist Heidi Steinmetz
3. APPROVAL OF AGENDA:
Motion/Second: Commissioner Larson moved and Commissioner Wagner seconded the
approval of the August 15, 2008 EDC agenda.
Motion Carried: 4 Ayes 0 Nays
4. APPROVAL OF EDC MINUTES:
Vice Chair Meehlhause noticed that Jim Ericson's name needed to be added to the last
paragraph on page 3.
Motion/Second: Commissioner Larson moved and Vice Chair Meehlhause seconded the
approval of the July 18, 2008 EDC minutes.
Motion Carried: 4 Ayes 0 Nays
5. SPECIAL BUSINESS
Economic Development Specialist Heidi Steinmetz introduced Melissa Deming to the
Commission. Ms. Deming is the Chamber's new Director of Events and Marketing. She is
• here today in place of Chamber President Tim Roche. Ms. Deming announced two
EDC Minutes
August 15,2008
Page 2 of 5
• Chamber events: the August 21st Annual Meeting and the September 12th Chamber Golf
event.
6. EDC BUSINESS
A. Introduce Patrick Bettenburq of Risdall Marketing Group & Discuss Branding, Marketing
and Public Communications Process
Ms. Steinmetz reminded the EDC that the EDA approved a contract with Risdall Marketing
Group on July 28, 2008. The contact will provide Mounds View with branding services and
a public communications/marketing plan. Ms. Steinmetz stated that the EDC and
EDA/Council will be involved in three of six phases of the process. She said staff would
handle the last three phases of the project.
Patrick Bettenburg is here today to explain Mounds View's brand development process in
detail. EDC members are invited to attend a tour of Risdall's offices in New Brighton
following this morning's meeting.
Ms. Steinmetz asked for the EDC's input on the types of questions they would like Risdall to
ask developers and real estate brokers. She referenced a spreadsheet included in the
EDC's meeting packet that summarized staff's business development efforts from
November 2007 to date.
Mr. Bettenburg began his presentation with stating that developing a "brand" for a city is
unique and that it is different then branding a company or a product; however the values
•
are the same. He stated that Mounds View's brand is a bit dated and lacking in definition.
Mr. Bettenburg said that strengthening Mounds View's brand will help residents better
understand their city and will drive business development and attract more consumers to
the area.
Mr. Bettenburg talked about Risdall's six-phase process for the project: Discovery,
Strategy, Identity Visibility, Implementation and Analysis. He said that Risdall's current
contract with the Mounds View EDA ends with the Visibility phase.
Risdall's first step is to develop the survey questions with City staff. He asked the
Commission if they had any questions with the process that he presented.
Commissioner Meehlhause stated that he was very impressed with Risdall's proposal and
he asked about the appropriate response rate. Mr. Bettenburg said that they will send the
survey to a large number of people but they have not determined the appropriate response
rate yet. The results will not represent the City as a whole but will generate enough insight
to move forward.
Commissioner Wagner asked if we would advertise in the local paper. Mr. Bettenburg
said "yes" and that we'll also advertise on the City's Website. Commissioner Meehlhause
added that perhaps the City Council could help promote the surveys during Council
meetings.
Commissioner Wagner asked about the results of Risdall's branding projects for other
• cities. Mr. Bettenburg replied that Risdall has not completed a full-blown branding effort for
another city; however Risdall's founder, John Risdall was New Brighton's public relations
EDC Minutes
August 15,2008
Page 3 of 5
• person when New Brighton did not have city staff. He added that Risdall's 36-year history
has helped refine and prove their branding process for a variety of businesses and
products. Commissioner Meehlhause added that Mr. Bettenburg began his presentation
this morning stating that branding a City is different then branding a business and
acknowledging that fact is a positive thing.
Ms. Steinmetz listed examples of Risdall's community-related clients: Visit Minneapolis
North (11 member cities), Twin Cities North Chamber (10 member cities), Mounds View
School District and the Rotary.
Commissioner Entsminger inquired of the project timeline. Mr. Bettenburg said that it would
probably take four months to complete the project but they are flexible to the City's needs.
Commissioner Johnson arrived at 7:55am.
Ms. Steinmetz asked the Commission if they had any ideas for survey questions. She gave
examples of business-related survey questions. Mr. Bettenburg encouraged the
Commission to submit questions for the different survey audiences. He added that
conducting a survey in itself is a positive thing because it shows that the City is interested in
receiving input and is willing to listen.
Commissioner Johnson said that she would like to see questions related to the environment
and would like input from other governmental entities, utility companies, the DNR and
Ramsey County. Commissioner Meehlhause wants to know how residents feel about
redevelopment along the County Road 10 corridor. Commissioner Entsminger is interested
• in why current businesses chose to locate in Mounds View. Commissioner Wagner wants
to know if non-residents would consider living in Mounds View.
Commissioners Wagner and Meehlhause asked for a list of potential questions that they
could use as a basis to form their own survey questions. Community Development Director
Ken Roberts and Commissioner Meehlhause agreed that Ms. Steinmetz would follow up
with an e-mail deadline for submitting questions and that it is not necessary to wait until the
next EDC meeting to review the questions.
7. REPORT OF COMMISSIONERS
Commissioner Johnson mentioned several Irondale High School fundraisers: the Huddle
Club, the band and the boys/girls high school hockey fundraiser (golf tournament) is next
Saturday. She feels that assisting these organizations brings the community together.
Commissioner Meehlhause added that the Huddle Club's discount card includes .5 off
gasoline from a local gas station. The card also provides discounts from local fast food
restaurants.
Commissioner Johnson reminded the group about this weekend's Festival in the Park,which
will include fireworks. Ms. Steinmetz invited people to visit the City's 50th Anniversary booth
because Mounds View cookbooks, history books and water bottles will be for sale.
•
EDC Minutes
August 15,2008
Page 4 of 5
• 8. REPORTS OF STAFF
A. Information Regarding EDCs Becoming EDAs
The EDC briefly discussed this item last month per Chair Helgemoe's recommendation.
New information added to this month's meeting packet was a list from the League of
Minnesota Cities showing how EDAs are structured throughout the state. Ms. Steinmetz
suggested postponing this topic until Chair Helgemoe is available. Commissioner Johnson
said that this is good information but it is not an urgent issue at this time.
B. Information Regarding University of Minnesota's Extension Service's Business Retention&
Expansion (BR&E) Program
Last month, the EDC discussed business retention efforts in Mounds View and Chair
Helgemoe asked for more information on the U of M's BR&E Program. Attached to this
month's packet was more information about the program; however Ms. Steinmetz
recommended that Mounds View conduct an informal business retention program.
C. Updated Economic Development Component of Comprehensive Plan
The EDC spent several meetings this year providing input on the Economic Development
component of the Comprehensive Plan; however staff is asking the EDC to review it one last
time but no later than September 1, 2008. There is new information in the Economic
• Development component thanks to Mr. Roberts fresh eyes (as a new employee). Mr.
Roberts added that the city will be asking the Met Council for an extension for completing the
entire Comprehensive Plan because the City has been short-staffed this year.
D. Verbal Report on 96-Unit "Select Senior Living" Project
Mr. Roberts presented the artist's rendering of the proposed 96-unit,three-story senior living
facility for the northwest corner of County Road 10 and Groveland Road. This project would
include the redevelopment of three lots: the former trailer hitch property and two single-
family homes. The Planning Commission has recommended approval and the Council will
review the proposal for the first time on August 25th. The developer hopes to begin
construction this year. He estimated that the market value of the finished project will be$12
million.
Commissioner Johnson asked if the developer has built similar projects elsewhere. Mr.
Roberts said that the developer has built one in Coon Rapids and West St. Paul.
Ms. Steinmetz stated that the key component of this project is the estimated $12 million of
increased tax base, which is an example of the benefits of redevelopment. Mr. Roberts
added that the developer has not requested City financing for this project.
Commissioner Johnson asked if the City will be continuing the trails near the property. Mr.
Roberts said that the developer will pay park dedication fees but the City will construct the
trailway so that it is cohesive with the rest of the trail system.
• Commissioner Entsminger inquired of the neighbors' concerns over the project. Mr. Roberts
felt that the concerns related to maintaining privacy (noise, light).
EDC Minutes
August 15,2008
Page 5 of 5
411 Commissioners Johnson and Meehlhause agreed that this project continues Mounds View's
efforts to provide life-cycle housing for its residents. Commissioner Entsminger added that
this project may entice new reinvestment in nearby business properties.
9. ADJOURNMENT
There being no further business before the Commission,Vice Chair Meehlhause adjourned
the meeting at 8:32 a.m.
Respectfully submitted,
Gc /
Heidi Steinmetz
Economic Development Specialist
• Item No. 8A-8H
Meeting Date: November 21, 2008
Type of Business: EDC
City of Mounds View Staff Report
To: Economic Development Commission
From: Heidi Steinmetz, Economic Development Specialist
Item Title/Subject: Summary of EDC Items 8A-8H
Item 8A- Continue Discussion Regarding EDCs Becoming EDAs
Background
At the July 18 and August 15, 2008 EDC meetings, the EDC briefly discussed
whether the EDC should become the EDA. The intent would be to relieve
pressure from the City Council (who currently serves as both the Council and
EDA) and to avoid redundancy of staff time.
4110 In August, the EDC reviewed the composition of other cities' EDAs but
postponed further discussion since Chair Helgemoe was not in attendance.
Next Step
Does the EDC wish to schedule a work session with the City Council to further
discuss this issue?
Item 8B - Economic Development Chapter of Comprehensive Plan
Attached is the final version of the Economic Development Chapter of Mounds
View's Comprehensive Plan. The EDC has actively reviewed and incorporated
changes to this chapter since November of 2007.
Next Steps
Since Mounds View was short-staffed this year, the Metropolitan Council granted
Mounds View an extension to complete the Comprehensive Plan by May 2009.
Below is a timeline of upcoming meetings regarding the Comprehensive Plan
approval process:
• November 19, 2008 - Planning Commission reviews entire plan
• December 1, 2008 - City Council reviews plan during work session
• December 8, 2008 - City Council considers approving the distribution of
the plan to neighboring cities for comments
Items 8A-8F
November 21,2008 EDC Meeting
Page 2 of 4
4111 Item 8C - Mounds View Branding
Background
This past summer, the EDA authorized Risdall Marketing Group and City staff to
begin a brand development process for Mounds View. The purpose of this
process is to refresh and accurately portray Mounds View's image or brand to
residents, visitors and prospective new businesses.
The EDC has been heavily involved in the process even prior to the EDA's
approval of the project. Most recently, EDC members attended a joint work
session with the EDA/Council on October 6, 2008 to review Risdall's research
plan and schedule. Work session attendees also discussed the benefits of place
branding, other cities' brands and Mounds View's current image and identity.
Mounds View's brand development process includes asking residents, non-
residents, businesses, potential businesses, developers, etc. detailed questions
about the city through surveys and interviews.
Update - Residential Survey Distributed
To assist with the preparation of the residential survey, Risdall completed the
• following:
• Attended the August EDC meeting to solicit input for survey questions
• Interviewed an EDC member, Council member and City staff in
September
• Reviewed the results of the 2005 Mounds View Residential Survey
completed by Decision Resources and based several questions on this
survey
• Asked City staff to review the residential survey (five City staff members
reviewed the survey, including one resident)
Residents received the attached 34-question survey in their October 2008 utility
bill (mailed on October 27, 2008) and were encouraged to complete the survey
online through the City's Website. The online survey became available on
October 29, 2008.
As of November 17, 2008, 367 surveys (298 hard copies and 69 online) have
been completed and submitted.
Next Steps
The next step in the process is for Risdall to prepare and complete the business
• and developer surveys and interviews.
Items 8A-8F
November 21.2008 EDC Meeting
Page 3 of 4
• The EDA/Council and EDC will review the results of the surveys and interviews
at a joint work session on January 5, 2009. Based on the survey results and
Risdall's extensive research, Risdall will present the EDA/Council and EDC with
Mounds View's brand strategy. If accepted, another joint work session will be
scheduled for February 2, 2006 when Risdall will present a new logo for the City
of Mounds View based on all of the above.
Item 8D — Select Senior Living
The City Council approved the Select Senior Living project on October 27, 2008.
Select Senior Living is a 95-unit senior housing redevelopment project to be
located on the northwest corner of Highway 10 and Groveland Road. This facility
will offer independent living, assisted living and memory care options with
underground parking, three daily meals, 24-hour "on call" RN/staff, weekly
housekeeping and social programs and events.
The developer still hopes to break ground this year. Construction will take about
ten months.
Item 8E — Mermaid Corner
The City Council approved the "Mermaid Corner" subdivision (County Road 10
and County Road H) on September 22, 2008. The 1.4-acre subdivision was the
first step in allowing a multi-tenant retail building to be constructed.
The EDA approved the next step in the process on October 27, 2008 by
authorizing the removal of the subdivision from the October 2001 Development
Assistance Agreement with MoundsVista, Inc. (the Mermaid).
The Mermaid now has to convince their bondholders to allow the sale of the 1.4
acres. The developer also hopes to secure tenants prior to purchasing the land.
Item 8F — Harland Clark Closing
On October 16, 2008, Mayor Marty received the attached letter from Harland
Clarke announcing their plans to close their Mounds View facility by January 31,
2009.
In Spring 2008, Harland Clarke told City staff that they had 308 employees.
Since the attached letter indicates that 125 Mounds View jobs will be relocated;
staff is assuming that job were cut or relocated beginning this past summer.
Harland Clarke currently leases 81,490 square feet in Mounds View. Staff
posted the available on the City's Website.
•
Items 8A-8F
November 21,2008 EDC Meeting
Page 4 of 4
1111 Item 8G — Dealsmart to Occupy Former Petters Space
Dealsmart has signed a lease to locate within the former Petters space in
Mounds View Square. It may be a month before Dealsmart opens, however a
definite date has not been determined. Mounds View Square's property owner,
Paster Enterprises, told City staff that Dealsmart will carry "general
merchandise". Dealsmart's tagline is "Smart Deals on Famous Brands with
Extreme Values".
Item 8H — Recap of C.G. Hill & Sons Tour
On October 13, 2008, Mayor Marty proclaimed October 20-24, 2008 as
Manufacturer's Week in Mounds View.
Mounds View's celebrated Manufacturer's Week by coordinating a tour with Tim
Hill of C.G. Hill & Sons on October 22, 2008. The tour was a way to draw public
awareness of the importance of manufacturing to Mounds View's economy.
During the tour, Tim Hill received a Certificate of Commendation from Governor
Pawlenty's office.
City staff invited the City Council, Economic Development Commission, Planning
Commission, Mounds View manufacturers, the Twin Cities North Chamber's
Economic Advancement Committee and representatives from the Sun Focus and
Bulletin to attend the event. Those who attended were:
• Heidi Steinmetz, City staff
• Gary Stevenson, Planning Commission
• Heidi Heller, City staff
• Del Palacheck, MultiTech Systems, VP of Manufacturing
• Paul Rignell, Sun Focus Newspaper Editor
• Greg Belting, EDC
• Sherry Gunn, Planning Commission
• Ken Roberts, City staff
• Gary Meehlhause, Planning Commission & EDC
• Tim Roche, Chamber President
• John Griffith, Empirehouse, President
• Bob Faue, Empirehouse, Plant Manager
Respectfully submitted,
Heidi Steinmetz, Economic Development Specialist
Attachments:
S .•
Economic Development Chapter, Comprehensive Plan (14 pages)
• Mounds View Residents Image Survey (2 pages)
• October 16, 2008 Harland Clarke letter(1 page)
2008 Mounds View Comprehensive Plan
•
Chapter 7
ECONOMIC DEVELOPMENT
•
•
2008 Mounds View Comprehensive Plan
Introduction
The intent and content of Mounds View's economic development element is towards future business
development (both retention and recruitment) and redevelopment in the city. It is important to
maintain and improve the quality and diversity of existing and prospective Mounds View businesses
and to embrace redevelopment opportunities. Such actions will enhance the City's tax base by
creating additional property market value through new construction,building enhancements or new
buildings and job creation.
Business is one of the key foundations to the high quality of life experienced in Mounds View both
directly(through jobs, goods and services) and indirectly(through a diversified tax base).
Businesses contribute more to a city's tax base(while at the same time requiring less City services)
than residential properties. This difference is why many cities focus economic development efforts
on business development.
Table 26 below provides an example of the amount of taxes the owner of a $250,000 home in
Mounds View contributed in 2007 versus the amount a commercial property owner contributed.
• The $250,000 amount was used for comparison purposes although there are no commercial
properties in Mounds View valued as low as $250,000.
Table 26: Tax Contribution - Residential Property vs. Commercial Property
Property 2007 2007 2007
Type Property Value City Tax Contribution Total Tax Contribution
Residential $250,000 $933 $3,332
Commercial $250,000 $1,586 $7,389
Source: League of MN Cities Property Tax Calculator
It is essential that the City establish and maintain economic development strategies that are
continually reviewed and modified to reflect changes in market conditions, service demands and
resource allocations. This can be achieved through the efforts of the City's Economic Development
Authority (EDA) working closely with the City's Economic Development Commission (EDC),
Community Development staff and the Economic Development Specialist.
Chapter 7: Economic Development 7-2
• 2008 Mounds View Comprehensive Plan
Economic Development Authority (EDA)
In 1994, the City Council approved the establishment of an EDA for the City as a mechanism for
achieving major economic development goals. Minnesota State Statutes guide the powers of the
EDA;however,the EDA is generally able to purchase property,redevelop property and/or provide
public financing of projects. The members of the City Council make up the membership of the
Mounds View EDA.
Economic Development Commission (EDC)
The Economic Development Commission(EDC)is a seven-member body that advises the EDA on
economic development activities. The City established the Commission to facilitate positive
interaction between the City and the business community. The Commissioners may be City residents
or non-resident business representatives.
The City should use EDA powers and the advice of the EDC and City staff,to address the following
economic development challenges in Mounds View.
Fiscal Disparities
Fiscal Disparities is unique to Minnesota and has been around for over thirty years. Up to 40%of
the value of commercial and industrial property in Mounds View is sent to what is called the Fiscal
Disparities tax base"pool of value." From this pool,it is combined with similar tax values from the
seven-county metro area and redistributed based on whether each community or taxing unit's fiscal
capacity per capita was higher or lower than the metro area average.
Table 27: Mounds View Fiscal Disparities Receipts,2002-2008
Year Amount %of Gross Levy
2002 $628,289 23.79%
2003 $664,704 25.48%
2004 $561,710 18.66%
2005 $594,802 15.50%
2006 $742,017 19.33%
2007 $680,323 17.72%
2008 $903,922 23.55%
Source: Mounds View Finance Department
Chapter 7: Economic Development 7-3
2008 Mounds View Comprehensive Plan
Economic Development Challenges
The following challenges and action steps are, to varying degrees, mitigated by the presence of
financial and other incentives that encourage or allow economic development. Successful economic
development will need careful monitoring of these existing and developing challenges so the City
can make realistic and timely efforts to emphasize Mounds View's many positive attributes. These
efforts would be to effectively minimize or counteract any negative perceptions or circumstances in
or of the City. Examples of such challenges and action steps include the following:
• To address the relative scarcity of raw land suitable for new construction, and in light of the
small size of the few remaining parcels of undeveloped land,the City will:
✓ Prepare and periodically update an inventory of undeveloped land.
✓ List available parcels on the City Web site with the knowledge and consent of their
owners/agent.
✓ Consider acquiring and/or clearing underused sites suitable for new construction.
✓ Focus development efforts on businesses suitable for smaller lots and investigate the
possibility of combining adjoining lots to accommodate businesses that need larger sites.
•
• In situations involving unrealistic price expectations on the part of those who own undeveloped
land or parcels of land prime for redevelopment (i.e., asking prices well in excess of actual
market value),the City should:
✓ Wait for the market to catch up with currently excessive asking prices.
✓ Investigate options that might reduce those prices (offering relocation assistance, etc.)
✓ Obtain market input from developers and other development/redevelopment
professionals.
✓ Facilitate education of current market value to property owner.
In cases involving actual or perceived neighborhood opposition to commercial development or
redevelopment, the City will:
✓ Consider surveying nearby residents to determine their preferences for land uses.
✓ Consider conducting neighborhood meetings or public hearings for proposed commercial
development(s).
40 Chapter 7: Economic Development 7-4
2008 Mounds View Comprehensive Plan
• In situations where owners of underused parcels(especially residential homeowners and owners
of old or obsolete commercial structures) are unwilling to sell, (thereby delaying or preventing
the development of those properties to their highest and best use),the City will:
✓ Arrange meetings with property owners.
✓ Provide current information about the potential market value of their properties.
✓ Develop or refine City relocation policies.
• In order to strengthen Mounds View's identity,the City will:
✓ Ensure that the City has a consistent image by using a brand strategy.
✓ Continue work on the development and improvement of County Road 10.
✓ Maintain a high profile within the local and regional business communities.
✓ Attempt to develop a greater sense of community.
✓ Handle business climate inquiries promptly and professionally.
• Given the scarcity of attractive office space and rental warehouse/office space, the City will
encourage new construction to meet these needs.
•
• The City shall investigate and use more cost-effective and/or more carefully targeted
recruitment/marketing techniques to bring businesses and development to Mounds View.
• Because funds are limited for the financing of business incubator programs and for enterprise
facilitation projects or other initiatives that help new businesses get started locally,the City will:
✓ Pursue grants to fund such programs.
✓ Establish collaborations with other governmental entities and non-profit organizations.
✓ Serve as a clearinghouse for information about assistance(financial and otherwise)that
may be available from sources other than the City.
• City staff shall make suggestions about alternative, new or improved methods of providing
advice, assistance or encouragement to those wanting to do development or redevelopment
projects in Mounds View.
• Due to the high cost of redeveloping property vs.developing property,the City will participate in
seeking creative solutions to the financing challenges inherent in redevelopment projects.
Chapter 7: Economic Development 7-5
• 2008 Mounds View Comprehensive Plan
Goals & Policies
The City will govern and direct future economic development in Mounds View by the following set
of goals and policies. The goals and policies focus on business development and redevelopment but
they have connections to other chapters of this Comprehensive Plan. Land use, housing,
transportation and public amenities also affect the City's ability to retain its economic base and to
attract development.
Business Development Goal: Retention
In light of the increasing mobility of businesses, Mounds View will focus on retaining existing
businesses in the city. In some cases,the City may decide to help businesses create circumstances
where they can expand to meet their customers' needs and/or their own desire to grow and prosper.
Retention Policies
• Enhance business communication efforts through evaluation of existing programs.
• • Focus business retention efforts on businesses that the City has identified as having the greatest
impact for future growth and development by continuing informal business retention visits and
site tours.
• Maintain and support open communication between the city and the business community in
acknowledgement of their value and be in a position to address concerns or meet expectations.
• Make available a reasonable and prudent level of assistance (financial or otherwise)to enable
existing businesses to expand their operations and/or facilities in Mounds View.
• Maintain the Mounds View Business Toolbox (approved by the EDA in March 2008). The
Toolbox includes economic development resources and services available for existing and new
businesses desiring to locate in Mounds View.
Chapter 7: Economic Development 7-6
2008 Mounds View Comprehensive Plan
Table 28: Five Largest Employers in Mounds View — 1994 vs. 2008
1994 2008
Employer Employees Employer Employees
SYSCO Minnesota 470 Medtronic (CRDM campus) 3,500
MultiTech Systems 300 SYSCO Minnesota 630
Garment Graphics 156 MultiTech Systems 240
The Mermaid 130 Mounds View Public Schools 220
Tyson Company 125 Vitran Express 140
Source: Unknown Source: Mounds View Economic Development Dept.
Business Development Goal: Recruitment
The City will actively market itself to target audiences as a prime location for specific types of
commercial and industrial development. In order to continuously refine and review its objectives as
economic conditions and realities change,the City,through the Economic Development Commission
(EDC)and/or the Economic Development Authority(EDA),will annually update its list of targeted
• business categories. Although the City will respond in a timely and business-like manner to all
requests for information about Mounds View's suitability as a business location,City staff members
will focus their attention on those requests that come from businesses of the type that appear on the
City's target list.
Recruitment Policies
• Encourage the development of new office space,warehouse space and retail operations that
will enable Mounds View to offer services,facilities and goods that are not now available in
the City, or that are unavailable in sufficient quantity or quality.
• Identify marketing and promotional tools and techniques to attract desired uses.
• Continue efforts to maintain and strengthen the City's bond rating by seeking diversification
in the local tax base and promoting economic development efforts of commercial and
industrial uses consistent with the overall City goals.
• Encourage the development of businesses that would compliment those already in the City.
• Chapter 7: Economic Development 7-7
S2008 Mounds View Comprehensive Plan
Business Retention & Recruitment Goal
The City recognizes that the maintenance of an adequate workforce will be one of the most serious
challenges that will face business and industry in the near future. In addition,Mounds View notes
that the private sector and/or educational institutions will be primarily responsible for addressing and
resolving workforce issues. However, the City is prepared to assist with such efforts by working
collaboratively with others who are concerned about such issues. The nature of Mounds View's aid
may include having City representatives serve on local and regional committees,commissions and
agencies devoted to this topic.
Redevelopment Goal
Mounds View,like many cities,is undergoing a change from a growing suburb into a redeveloping
one. The land resources that once spurred development are now limited and any increases in
employment and market value will come predominantly from reinvestment or redevelopment of
property.
The link between quality businesses and
residents is critical to the continued success of
Mounds View. Since the City is almost fully s __
developed, new revenue sources for
municipal services will have to come from
increased market value that occurs from
business and resident reinvestment in their a
properties. This includes redevelopment in
the city that allows for a higher value and/or
density on an existing site. As such,the City
has begun work towards promoting
redevelopment opportunities to ensure that Medtronic Mounds View Campus
Cardiac Rhythm Disease Management
Mounds View remains a healthy and viable Headquarters
city.
Mounds View intends to devote significant attention to redevelopment. Such efforts will be to
redevelop aesthetically displeasing, aging, obsolete,blighted, contaminated, abandoned,unsafe or
otherwise underused(lacking highest and best use)properties. Redevelopment areas are generally
situated in high profile locations in the city,are very visible,located along major thoroughfares or at
gateway intersections in the City and no longer convey the overall development values of the city in
visual appearance or use.
Chapter 7: Economic Development 7-8
•
40 2008 Mounds View Comprehensive Plan
Additionally, the City will explore and consider development opportunities that owners and
developers present for the few remaining parcels of undeveloped property. In some cases,this may
involve assisting the owners of such parcels with the marketing of their properties.
Recent redevelopment efforts in Mounds View include the sale of the former municipal golf course
to Medtronic for their new Cardiac Rhythm Disease Management campus(as pictured on page 7-8).
In addition, redevelopment recently occurred on four single-parcel properties located along the
County Highway 10 corridor(as shown below).
M
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Year Built-2003 Year Built-2002
Hwy 10 Business Center (former restaurant) Mounds View Animal Hospital (former tri-plex)
2214, 2218 & 2222 County Highway 10 2625 County Highway 10
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Year Built-2004 Year Built-2005
CVS Pharmacy (former gas station) Snyders Drug Store (former gas station)
2800 County Highway 10 2525 County Highway 10
7-9
Chapter 7: Economic Development
• 2008 Mounds View Comprehensive Plan
Redevelopment efforts in Mounds View have shifted to land assembly projects. In 2006, the
Mounds View Economic Development Authority (EDA) purchased the property at 2390 County
Highway 10 (pictured below), and demolished the blighted convenience store/gas station and car
wash that was on the site. Mounds View would prefer that a developer"bundle"this property with
adjacent properties to maximize the highest and best use of the area.
n�. r
Former Convenience Store, July 2006 Former Car Wash, July 2006
• ,c!"'
. fir ::,
i r LAND FOR DEVELOPMENT
763-717.4029
wmw ci mounds view mn us
June 2008
Redevelopment Policies
• Develop a long-range plan for addressing potential redevelopment areas in Mounds View to
sustain the economic strength of the city.
• In mixed-use,retail and residential redevelopment areas,the city should incorporate livable
community concepts, sustainable design, quality urban design and streetscape elements.
41111 Chapter 7: Economic Development 7-10
• 2008 Mounds View Comprehensive Plan
•
Due to the added complexities of redevelopment, evaluate and adjust, if necessary,
ordinances to expedite the ease of redevelopment of targeted areas.
• Mounds View will consider the redevelopment or expansion of an existing business, new
commercial or industrial development, or residential housing even if it involves the
acquisition, demolition or relocation of an existing business or residential properties.
• The City will consider the redevelopment or expansion of an existing business, or new
commercial or industrial development, or residential housing only if the review process
includes a reasonable opportunity for public input by those business owners and homeowners
that the proposal could affect. Whether or not such parties support(or,at a minimum,do not
reasonably oppose) any proposed redevelopment, expansion, new development or new
project will be one of the more important factors in determining the City's position with
respect to any such proposal. The City Council and EDA will need to decide whether the
actual or potential benefits to the City (from any such proposal) outweigh the actual or
potential negative impacts on individuals, businesses or the city as a whole.
• Miscellaneous Economic Development Goals
• The City will facilitate communications between and among the City,Ramsey County,local
businesses, the Chamber of Commerce, the Convention and Visitors Bureau, the
Metropolitan Airports Commission (MAC), local educational institutions, and any other
parties or entities having a direct or indirect interest in the economic prosperity of Mounds
View.
• The City will continually develop and review more specific priorities to provide guidance to
City staff,business owners, developers, and residents with respect to areas the City intends
for concentrated development efforts (geographic and otherwise).
• Support and advocate for public transportation and transit improvements that serve the needs
of City residents and business community. This should include the County Highway 10
Improvement Project and the Twin Cities Army Ammunitions Plant(TCAAP)Development
in Arden Hills.
• Advocate with providers of telecommunications and technology infrastructure to ensure that
they sufficiently provide these facilities and services to residents and the businesses.
• Chapter 7: Economic Development 7-11
• 2008 Mounds View Comprehensive Plan
Resources to Support Economic Development
The City defines resources to support Economic Development as any facts, programs or
circumstances that enhance Mounds View's ability to attract new businesses, retain and expand
existing businesses, or assist in the preservation of a vibrant and diverse local economy. Such
resources currently include the following:
• The City's close proximity to Interstate 35W which allows relatively quick and easy access to
the downtown areas of Minneapolis and St. Paul, and to other portions of the Twin Cities
metropolitan area.
• Good internal traffic circulation and the City Council approved(2007)Street&Infrastructure
Improvement Program (first project—2009).
• Visible evidence of new commercial activity, storefront improvements, remodeling, and
other indications of local economic health.
• The City's ongoing efforts to enhance the appearance of, and to better coordinate planning
• for the further development of,the County Highway 10 corridor and the city at large.
• Local business owners who are interested in expanding their operations and improving the
appearance of their properties.
• Mounds View places a high priority on maintaining and strengthening the City's bond rating,
which is a significant factor that supports the overall economic and financial status of a city.
The City's current bond rating is"Al"according to Moody's Investor's Service,a prominent
national rating agency. This bond rating is a direct result of the 2007 addition of Medtronic's
CRDM campus and the City's long-range financial planning. Bond rating agencies have
indicated that a diversified tax base is important to the economic strength of a city;therefore,
the City needs to continue to strengthen and sustain its tax base.
• The potential availability of City assistance for appropriate development or redevelopment
projects such as Tax Increment Financing(TIF),Tax Rebate Financing(TRF),the Business
Improvement Partnership Loan Program and the Housing Replacement Program. The City
will continue to provide these types of assistance in a manner consistent with the City's
written policies about such assistance. Mounds View will generally limit the use of these to
situations in which their use will enable the City to attract a new business,retain or expand
an existing business,provide new employment opportunities,enhance the City's tax base,or
4111 Chapter 7: Economic Development 7-12
• 2008 Mounds View Comprehensive Plan
otherwise improve the appearance or vitality of the local business economy. The City will
continually monitor and periodically evaluate its programs and policies about development
and redevelopment assistance to make certain they are helping the City meet its economic
development goals, priorities and objectives.
• Parcels of land that are suitable for development or redevelopment .
• An active local Chamber of Commerce and Convention& Visitors Bureau.
: MH
CHABER OF COMMERCE 01,0,,,?,vii° pa/fat
1
• A coordinated approach to local planning and development issues, as evidenced by the
• ongoing work of the I-35W Corridor Coalition.
• A plentiful supply of life-cycle housing to accommodate a wide range of incomes.
• Easy access to mass transit for workers who need or prefer to use such methods of
transportation.
• A highly regarded School District -Number 621.
Mounds View
PUBLIC. SCHOOLS
• Active and successful youth programs that serve the youth of the City including Boy Scouts,
Girl Scouts, youth football and hockey, Little League baseball and those of the YMCA.
• Chapter 7: Economic Development 7-13
• 2008 Mounds View Comprehensive Plan
• The proximity of the Anoka County Regional Airport to Mounds View.
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Chapter 7: Economic Development 7-14
MOUNDS VIEW RESIDENTS IMAGE SURVEY
. You must be 18 years of age or older to participate in this survey.
The City of Mounds View is conducting a brief survey and we need your help to make our community an even better place to live.This is your
chance to be heard—your opinions matter!Please take a few minutes to either log on to the city's website(www.ci.mounds-view.mn.us)for the
online survey,or complete this form and return it to City Hall.If you like,you may include it with your utility payment.Thank you.
1. Are you eighteen years of age or older? Yes_ No 10.What do you like the most about living in Mounds View
(choose up to three)?
2. Are you a resident of Mounds View? Yes No
Location Affordable housing
Quiet and peaceful atmosphere Family/friends
3. How long have you lived in Mounds View? Large lots for homes Parks and trails
Less than 2 years_ 2-5 yrs 5-10 yrs_ 11-20 yrs_ 21-30 yrs_ A great place to raise a family Caring community
Over 30 yrs— Neighborhood/house Good schools
_Safe place to live Small town feel
4. Do you own or rent your residence? Own Rent_ Convenience to both Minneapolis and St.Paul
5. Do you expect to move in the next two years and how likely is a move? 11.What do you think is the single most appealing aspect of Mounds View?
Not at all likely Slightly likely— Moderately likely Very likely
Don't know
6. Please rate on a scale of 1-5(where 1 is most important and 5 is least
important)on how important the following Mounds View city services
or programs are to you? 12. What do you like LEAST about Mounds View?
_Police _Street Repair
_Trash collection and recycling Property code enforcement
—Improving the County Road 10 corridor _Trails system)walking/biking)
_Annual Festival in the Park Park&Rec programs
Managing traffic congestion Affordable housing 13. How would you rate the'quality of life'in Mounds View?
Environmental issues _Public access cable channel Excellent Good Fair Poor_ Don't know
—Community Center
—Economic Development(adding jobs,retaining or recuiting businesses)
14.What would you suggest that the City do to improve the'quality of
7. Please rate on a scale of 1-5(where 1 is most satisfied and 5 very life'in Mounds View?
unsatisfied)how satisfied you are with Mounds View's ability to manage
these services or programs?
Police Street Repair
_Trash collection and recycling Property code enforcement
Improving the County Road 10 corridor —Trails system(walking/biking) 15. Do you think residents in other communities have a positive or
_Annual Festival in the Park _Park&Rec programs negative impression of the City of Mounds View?
_Managing traffic congestion _Affordable housing Positive Negative Neutral_ Don't care_ Don't know
Environmental issues Public access cable channel
Community Center
—Economic Development(adding jobs,retaining or recuiting businesses) 16. How would you best describe the City of Mounds View to a friend
or someone new(check one).
A rural setting A growing suburb
8. What do you think is the most serious issue facing the City of Mounds An older suburb A small city or town
View today?(check all that apply) Centrally located Twin Cities community
High property taxes Too much growth Other
Road conditions/street maintenance _Crime
_Improving the County Road 10 corridor _Lack of shopping options 17.If you selected'Other'above,please tell us how you would describe
Lack of businesses or shopping options _Traffic congestion Mounds View?
_Too much low-income housing Home foreclosures/
Growing diversity rundown properties
Lack of public transportation options
—Lack of housing options(i.e.not enough affordable/high density housing)
—Increasing amount of vacant,underused or blighted commercial properties
9. What are your favorite things to do in the City of Mounds View 18. From the list below,please rate each attribute on how well they
(choose up to three)? describe Mounds View on a scale from 1 to 5,(where 1 is most like
Mounds View and 5 is least like Mounds View):
-Biking —Walking/running Convenient Central _Connected
40 =Sports =Volunteering Neighborly Caring —Relaxing
Gardening Shopping Well planned Diverse Educated
Dining out Using parks&trails _Growing Safe Spacious
Fun Healthy Spirited
Family oriented —Affordable
19. What do you think is unique or special about Mounds View? 28. Now please check the ONE item that you feel would be the most
important improvement to County Road 10:
Trailways connected to County Road 10 Renaming County Road 10
Lighting _Landscaping
Monument signs at the City's borders _Improved appearance of
20. From the list below,please rate what you think best describes the businesses
values of the residences,businesses&city government of Mounds _Improved appearance of residential areas
View,on a scale from 1-5(where 1 most important and 5 least important):
Responsive Progressive 29. What types of retail or service businesses would you like to see
Professional Innovative available along County Road 10?
Quality services Committed to improvement
Serving the needs of the citizens Cooperative Shopping center Restaurants
Ethical and integrity _Open and honest Convenience store Grocery store
Fiscally responsible Respectful of citizenry Professional services(office space) Hardware store
Involved Medical clinic(doctor,dentist,etc.) Specialty stores
Automotive service/gas station
Specialty service businesses
21. From the list below,please rate the importance of these values in "Big Box"retail chain store(Target,Walmart,Best Buy)
relation to city government or to you,on a scale from 1-5(where 1
most important and 5 least important): 30. Where do you currently shop outside of Mounds View?
Responsive Progressive
Professional _Innovative
Quality services Committed to improvement
Serving the needs of the citizens Cooperative
_Ethical and integrity _Open and honest
Fiscally responsible —Respectful of citizenry Optional Questions:
Involved
22. The current Mounds View citytagline is"Pride,Progress& 31. What is your age please?
Partnerships". Do you think that it appropriately describes the city? 18-24_ 25-34 35-44 45-54 55-64_ 65 and over
Yes No
32. What is yourtotal household income?
23. If you responded No,why not? _$0-$50,000 $50,000-$75,000
$75,000-$100,000 _$100,000 or more •
33. Gender: Female Male
34. Any other comments you wish to make?
24. What do you want the City of Mounds View to be known for?
25. Do you think that County Road 10 is critical to the image of Mounds
View? Yes No Don't know
26. Please indicate which of the following improvements to County
Road 10 you feel would be the greatest benefit to the City(check all
that apply):
_Trailways connected to County Road 10 _Renaming County Road 10
Lighting _Landscaping
Monument signs at the City's borders _Improved appearance of
businesses
_Improved appearance of residential areas _Other
27.If you selected'other'above,please tell us what improvements you
think would be the greatest benefit?
411
Thank you for taking the time to complete this survey!
Please make sure to enclose it with your utility bill payment or simply place it in the drop box at the City Hall.
Harland Clarke
10931 Laureate Drive
S San Antonio,Texas 78249
Tel:210.697.8888
www.harlandclarke.com
HARLA lD CLARKS
October 16, 2008
Mounds View City Hall
Attn: Mayor Rob Marty
2401 Highway 10
Mounds View,MN 55112 •
NOTICE
1. As required by the Worker Adjustment and Retraining Notification Act of 1988
("WARN"), this letter serves as formal notice that Harland Clarke is permanently closing
its facility located at 5267 Program Avenue,Mounds View, Minnesota, 55112.
2. The maximum number of affected employees is approximately 125. Some of the
employees at the facility will be transferred to another building located in Eagan,
Minnesota.
3. The expected date of the first employment separation will be December 15, 2008 and the
employment separations will be completed by January 31, 2009.
4. For additional information,please call me at(210)697-1235.
Sincerely yours,
cse eta aka,
Rachel Aldaz
Vice President Human Resources
Harland Clarke
•
SANANTONIO1750274.I
BUSINESS JOURNAL
T. L.
25 ISt
Web Development & Design Firms
p g
2. Minneapolis/St.Paul Business Journal I mspbj.com September 26,20013
Metro-area Web development and design firms ranked by Web development and design revenue Research by Mary Zenzen
Web Developers& %Web strategy Top metro executive FUTURE HITS
development& designers' %App.dev. %Web design Year founded'
Rank Name/Address/Phone design revenue' Total revenue' %SEO %Other Specialties' Web site
Risdall Advertising Interactive 17% Educational materials,health care, Ted Risdall We asked Top 25
1 42 12% companies which services
550 Main St $17,148,000 32% 132B,B2C,yodel media,Web 2.0, 1972 P
$171 million 26% 13% Web 3.0,SEO,online marketingrisdall.net would be popular in
New Brighton,MN 55112(651)286-6700 P p
2 MRM Worldwide 75 5% 9 p the comingyear.Their
25% Web design development, Rachael Marret
222 S.Ninth St,Suite 2955 $12,000,000 40% interactive media buying,planning, 1999 responses include:
Minneapolis,MN 55402(612)367-5136 $12 million 5% p5% design and production;SEO mrmworldwide.com
3 Bridgeline Software. 10% Rachelle Anderson •
800 Washington Ave N.,Suite 500 $11,200,000 10 4�0 40% Full-service interactive agency 2000
Minneapolis,MN 55401(612)375-1010 $11.2 million 10% 0% bridgelinesw.com
4 Gage 16% Tom Belle
33 36% Technology-enabled marketing,CRM, ,,
10000 Highway 55 $10,813,000 31% 9y 1992
Medicine Lake,MN 55441(763)595-3838 $13.1 million 0% t 7°k online promotion. -gage.com
5 Olson 57 30% 15% Advertising,strategy,brand design, John Olson
1625 Hennepin „�,
Minneapolis,MN 55403(612)215-9800 $442 milliod 5% 10W creation,mobile,branded Web sites oco.com
6 Charter Solutions Inc 32 NP P Web-application development appli- Dee Thibodeaa' 'Social networking and
3033 Campus Drive,N160 $7,500,000 IJP cation integration,e-commerce,Web 1997
Plymouth,MN 55441(763)230-6100 $76 million NP NP services,Web strategy: chartersolutions.com mobile media will continue
Object Partners Inc 0% Custom enterpnse application Chris Spurgat to emerge as the primary
7 45 50% areas to watch this coming
100 N.Sixth St,Suite 302A $6,952,381 50% architecture,design,development and 1996
$7 million 0%
Minneapolis,MN 55403(612)746-1580 0% integration services objectpartners.com year.
8 LarsenTim Larsen -Jason Ulrich,
10 10% 30% Brand strategy,environments,naming 1975 President,Popular Front
7101 York Ave.S $6,479,886 40%
Edina MN 55435(952)835-2271 $8.4 million 10% 10% and identity,interactive design larsen.com
9 spacels0 5% William Jurewicz "Next year you'll see
212 Third Ave.N.Suite 150 $5,800,000 25 30% 40% Digital branding 2000 companies understanding
Minneapolis,MN 55401(612)332-6458 $8.3 million 10% 15% space150.com
the value of collaboration
NP Brian Stojny '
10 InsiteCommerce
and social-networking
NP NP Integrated e-commerce and shipping 1997
7900 International Drive,Suite 1065 $5,000,000 NP technologies in how
Bloomington,MN 55425(612)455-0240 NP NP NP solutions for B2C and B2B sites insite-commerce.com they interact with their
11 Atomic Playpen 30 35% 20% - Online strategy,Web site/portal de- Troy Venjohn customers.”
701 Xenia Ave.S,Suite 200 $4,700,000 35% sign,e-commerce,content manage- 1999 -Dee Thibodeau,
Golden Valley,MN 55416(763)231-3400 $47 million 1 Wk 0% merit e-marketing,SEO,Web video atomicplaypen.com
CEO,Charter Solutions
1Partners Ino 25% Stott Grausnick
25 40% Strategy,architecture,custom soft-
55 Village Center Drive $4,500,000 $95 million 10% 150ware development1999 "Ado tion of.arbinger
orth Oaks,MN 55127(651)270-3934 10% harbinger-partners.com P
30°k Jason Ulrich
social-
networking strategies to
13 Popular Front
25 30% strategy,experience design,content 1989 generate buzz and lead
555 First Ave.N.E. $4,400,000 $4.5 million - 0% 30%
development,technology,and delivery
Minneapolis,MN 55413(612)362-0900 10°k p popularfrontcom generation are popular
Sierra Bravo Corp. 0% Social networkingand Web 2.0 Luke Bucklin right now!
14 p 49 82% -Rachelle Anderson,
9555 James Ave S.,Suite 245 $3,966,882 6% applications,e-commerce,content 2003
Bloomington,MN 55431(952)948-1211 $4 million 2% 0% management,system integration sierra-bravo.com Vice president of business
15 Colle+McVoy 24 aowomarketing planning, development,Bridgeline
20% Interactive Christine Fruechte P g
400 First Ave.N. $3,675,000 30% branded experiences,connected 1935 Software
Minneapolis,MN 55401(612)305-6000 $26.3 million 2% 8% campaigns,CRM collemcvoy.com
16 Aware Web Solutions Inc 30 40% 20% Online strategy,Web design,content Jeremy Ziegler
6600 France Ave.S. $3,100,000- 20% management systems,custom Web 1998
Edina MN 55435(800)783-8919 $3.1 million 20% 0% applications awareweb.com FOOTNOTES
17 Clockwork Active Media Systems 33 30% 20% Web design and development, Nancy Lyons Abbreviations:
1325 Winter St.N.E. $3,000,000 30% content management interactive 2002 App.=Application
Minneapolis,MN 55413(612)746-1850 $3 million 0°k 20% strategy,application development clockwork.net 1328=Business to business
A0% Marc Strarzanti 1320=Business to consumer
1Datacom Consulting Corp.
8 7760 France Ave.S. • $2,800,000 15 80% 20% Application development,Web design 1998 DIM=Cos=Customer-relationship
Bloomington,MN 55435(952)886-7322 $3.7 million 0% and development datacomconsulting.com Oev=ement
Beuelopment
19 pagel0 7 20% 25% Strategic planning,Web design and Rob Page PR=Public relations
Eagle Creek Circle $2,400,000 $2.4 million 10% 355k development online marketing,con- 1997 SEO=Search-engine optimizationSavage.MN 55378(952)567-2381 10°/o tent management,usability,analytics page 10group.com
Reside o 21% Strategy,design,technology,metrics/ Matthew Meents Footnotes:
209 13 k Fun most recently completed
2815 Wayzata Blvd. $2,240,865 24% results,salesforce.com consulting 2001
Minneapolis,MN 55405(612)767-2000 $23 million 13°k 6% partner reside.biz focal year
2.1n the metro area
21 CRC Marketing Solutions 15 5°k 40% Consulting,strategy,architecture, Michael Lundeby 3.May be edited to fit
6321 Bu Drive $2,125,000 40% design,programming,database de- 1979 A.Appeared last year as Tenth Floor
Eden Weide,MN 55346(952)937-6000 $2.1 million 5% 0% velo ment,integration,transaction crc-inccom
p g Interactive.The two companies merged
22 TNancekivell Group 25% Interactive and brand strategy;Web Jim Nancekivell n February 2008.
5.Also 511 Leonard
7 10%
400he N.First St. $2,100,000 $2.1 million 10% 25% and brand audits,development, 1982
Minneapolis,MN 55401(612)340-1833 30% design and integration nancekivell.com
Note:
23 Badiyan Inc 5 50% 25% Courseware development training Janiece Haglund -Web development and design
720 W.94th St $2,000,000 25% outsourcing,learning management 1974 revenue was calculated without"pass
Bloomington,MN 55420(952)888-5507 $2.5 million 0% 0% software,marketin communication badi an.com
g 9 Y through"charges such as hosting ser-
24 Ciceron 40% Digitalbusiness strategy,social Andrew Eklund vices,Google/search engine pay-per-
126 N.Third Si,Suite 309 $1,875,000 12 0% 30% media,online video,mobile marketing, 1995 click spends,online advertising coda
Minneapolis,MN 55401(612)204-1919 $1.9 million 10% 20% Web analytics and optimization ciceron.com buying,third-party e-mail marketing
send fees and media services.
25 Internet Exposure 15 30% 20% Interactive design,application devel- Jeff Hahn
1101 Washington Ave.S. $1,750,000 $2 million 15% 25% opment search engine marketing, 1995 Source:Company representativesMinneapolis,MN 55415(612)676-1946 10% search engine optimization iezposure.com
III
November 2008 Minnesota Real Estate Journal Page 27
Responding to changes in retail real estate
•Debra Page must be taken to ensure that the Reconstruction and Remodeling
transportation needs of that customer Consumer requirements are not
are consonant with the center.This limited to product and service
tail real estate has experienced may require changes in parking lot demands.David Luick,Manager of
ome of the harshest responses to configurations, revised access to Strategic Development Initiatives for
current economic problems.Retail- public transportation, or expanded Real Estate, works to enhance
ers are not only faced with decreased points of egress to public streets. greater sustainability for Target Cor-
consumer spending, but also Where a change requires a dispro- poration.Luick accurately observes
encounter pressures from their portionate use of shopping center that while sustainability is environ-
lenders with increased cash margin services, neighboring tenants may mentally responsible, makes good
requirements and decreased credit _ require revisions to pro rata formu- business sense, and can be cost-
lines, and from their vendors with las or carve-outs of certain services effective,it is also responsive to the
reduced payment terms.These forces to better allocate the costs of those customer's interests and expecta-
can result in insufficient inventories, services among all tenants of the tions.Target is one of many retailers
which not only reduces sales poten- center. with energy-efficient stores that
tial,but can also create loan defaults reduce emissions and waste products
due to financial covenants.ClosuresReconsidering Loan Requirements that have also increase offerings of
of neighboring stores further .,�,_ ,.w._�.. Jill Noack, Vice President and environmentally friendly products
decrease foot traffic, resulting in Page General Manager of Gabbert & for sale to customers whose environ-
even lower sales. And operating Beck,observes that successful long- mental expectations have changed
costs continue to rise in response to need to revisit their use provisions to term retailers are those who operate dramatically in recent years.
tax and fuel increases. How will provide greater flexibility for prod- stores that are relevant to their cus- When retail changes require
retailers respond when faced with uct mixes and radius restrictions that tomers' current lifestyles and are reconstruction or remodeling, con-
these myriad forces at work? may not comply with current retail unique.She believes,however,that sents may be required from a multi-
Notwithstanding these changed environments.It would be easy for the most important criteria for retail tude of entities.In addition to land-
circumstances,owners and tenants of neighboring businesses to reject new success is the ability to change in lords and lenders, approvals from
retail real estate may be living with concepts.But greater flexibility may response to customers' demands. municipal or other governmental
terms negotiated in a different eco- bring increased customer counts and Noack notes that those demands entities may be required for building
nomic time. Leases, mortgages, improve sales for the entire center. include both offered products and permits,zoning compliance,and to
exclusive use clauses, operating Once the concepts can be agreed on, the entire shopping experience pro- accommodate prior development
covenants,maintenance agreements, leases and shopping center operating vided. agreements and governmental
and municipal development agree- documents must be revised to allow But credit documents may limit a financing restrictions. Most cities
ments continue to dictate retail oper- for expanded uses,revised exclusive retailer's ability to change because prefer a viable use to no use of coin-
ions despite economic and con- uses,and changed co-tenancy Claus- they require lender approval for mercial properties,but owners must
er changes.How will these con- es to accommodate new sales oppor- modifications in concept or signifi- include governmental approval
ctual obligations affect retail's tunities. In those revisions, care cant expansions of product lines. processes in the timelines for chang-
ability to recover from this econom- should be taken to protect existing Retailers need to keep an open dia- ing uses of certain properties.
is cycle? retailers' uses while encouraging logue with their lenders about the
Experienced Minnesota real estate newer forms of sales. customers'changing faces to allow Cooperative Efforts
professionals provide various ideas for prompt responses to shifting con- Any retail real estate forecast must
about the future of retail real estate, Recognizing Common Area sumer demands. Once both parties assume that change will be a compo-
but everyone agrees that the cus- impacts reach agreement about the expanded nent of economic recovery.As retail-
tomer will dictate the manner of suc- Nancy Karason,President of NAK use, loan documents should be ers and owners consider changes to
cess as the retail economic cycle Retail Management, Inc., cautions amended to clearly allow for the new products, concepts, and physical
moves into recovery. that today's urban market indicates retail image and to describe new use improvements, they must incorpo-
that successful retail requires finding covenants. rate lenders,tenants,shopping cen-
Revisiting Use Provisions the right balance of independent and David Shea,founder of Shea,Inc., ter participants, and governmental
For seasoned veterans,this is not big box retailers to create a shopping agrees that consumers drive,dictate, entities in the process.With cooper-
the first recessionary cycle. Mike experience that matches the neigh- and can destroy retail real estate with ative efforts,the parties can restruc-
Scott of NorthMarq Brokerage borhood. Shoppers look for an their habits,responses,and available ture retail to responsibly respond to
remembers well the downturn in the atmosphere consistent with the cul- resources.Shea finds that consumers consumer desires and retain viabili-
late '70s and early '80s. Retail ture of the local community,which seek value,focusing not only on cost ty in the retail market.
looked different when the economy may change over time. but also on -convenience, service,
improved that time.Customers had In evaluating acceptable use and comfort.Successful retailers fre- Debra Page is a partner in the Min-
become accustomed to significant changes, all parties will need to quently reevaluate their offerings neapolis office of Lindquist& Ven-
and repeated sales events during that determine if the particular change and respond to changing consumers num. She is a member of the firm's
recession and continued to expect fits the community.This evaluation by rebranding or reimaging,if nec- Real Estate Practice Group and is
similar sales activity following the requires consideration of existing essary. certified in Minnesota as a Real
recovery.Scott recalls that this men- neighboring retailers,as well as seri- Revised retail concepts may also Property Law Specialist.She can be
tality ushered in a wave of new dis- ous consideration of the existing require revisiting financial models to reached at 612-371-3528 or at
count stores, providing changed shopper within the subject commu- allow for reduced cash flows during dpage®lindquist.com.
competition for existing department nity. Owners will need to bring all remodeling or rebranding and for
stores and boutiques. For brokers, parties with an interest in the cus- increased capital expenditures, as
this meant creatively selling spaces tomer to the table for discussion and well as for advertising and other
previously used for other purposes. consideration of changed concepts. costs. Lenders brought into these
Scott believes that retail will emerge When faced with the changed use discussions early in the decision-
from this economic cycle in another of a neighboring retailer, shopping making process may facilitate
changed form in response to cus- center tenants will be concerned change.Retailers and landlords not
mAififfer expectations. about the impact of the change on only avoid defaults by this engage-
f the recovery from this current the use of the common area and ment,but can benefit from a lender's
Illonomy brings a new store concept whether the change affects pro rata experience with other retail cus-
or a new focus of location,landlords costs.If the change attracts a differ- tomers.
and shopping center owners will ent type of customer,consideration
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Page 20 Minnesota Real Estate Journal November 2008
Construction
From page 1
is project would have taken at
t an additional four months-and
ih
s only if everything went right-if
we had gone with an alternative design '•--r ,I." ,•.
method,said Arlen Kleinsorge,divi-
sion manager with McCownGordon
Construction.
Kleinsorge, along with other con- •
struction pros interviewed for this • +ti II us 0 •
story,agreed that build-to-suit projects
are becoming more popular among
municipalities, especially as these •
municipalities seek ways to keep their moo►:
budgets under control in tough eco- _ ■........-,....,,,�,.,,.�w�
nomic times.
More municipalities are looking for t
expedited delivery of their projects,
McCown said. Going with the
design/build method is one way for
municipalities to move projects along
quickly and save money.You get the
best team in place to execute a project.
You're not working with companies
who happened to be the low bidders
and are only responsible for one por- for this story said that 2009 may prove works and university-sponsored con- now the private-sector work is slow.
tion of the project. In design/build, to be a tough year for the industry.The struction projects are also providing a The public work is helping us maintain
you're working with a team dedicated commercial markets in the Midwest boost to the industry,he said. our construction volume.
to bringing the project in on time and tend to react to economic woes any- The universities and the public sec- The village has been schedule-con-
on budget. where from six to nine months after tor have money.They don't necessari- scious throughout the process, Seil
The growing popularity of the they hit.Because the nation's economy ly have to go out and acquire these said. That's why going with
design/build method of construction is is suffering now,it makes sense,then, more difficult-to-get loans and project- design/build,and the speed and flexi-
just one trend that commercial con- that the region will see a significant financing that a typical developer bility that it allows,was so important,
struction professionals cited when slowdown in commercial construction would have to get,Bellina said.That's he said.The goal now,he said,is to
looking at the state of their industry as next year. part of the reason that those markets complete the project by Jan.31.
2008 nears its end.They also pointed Part of the challenge is that develop- are still active. It's a compressed timetable that
ontinued demand for new health- era will continue to find it difficult to never would have been possible with
facilities and Aikresearch-and-devel-iii
obtain financing for their projects,said Staying active more traditional construction methods,
ment centers as providing a boost to R.Hank Bellina,director of the divi- Woodridge, Ill.-based Mor- Seil said.
a commercial construction market that sion of major accounts for St.Louis- - gan/Harbour Construction is one of We don't necessarily have to do all
is in the midst of a slowdown. based ARCO Construction. those construction firms that is adapt- the drawings,put them out for pricing
Interviewees also had kind words for Banks and lending institutions are ing.The company,which specializes in and then wait for responses,Freehauf
municipal public works projects as one already requiring more equity on all design/build projects, is currently said.We can go out for pricing on those
other area of the commercial construe-
types of construction projects,Bellina developing a 120,000-square-foot two- items that do require a long lead time,
tion industry that continues to thrive. said.They are also looking for projects story public works facility for the vil- the pre-cast and the steel,say,and get
But other sectors-retail,certainly, that already have several tenants lage of Wheeling,Ill. those in order so we can rush the
and industrial and office in many mar- attached to them. The facility,which will sit on nearly schedule for both design and construc-
kets-are slowing down.This means There is no such thing as a slam 12 acres of land,is another example of tion.
that it's those general contractors and dunk for financing anymore for con- both the public-works projects and Under traditional construction meth-
developers who adapt to what is cer- struction projects,Bellina said.It does- design/build construction method that ods,the possibility of delays is high,
tainly a changing market are those who n't matter how great your credit rating is now fueling building activity. Freehauf said.In the standard way of
will survive the slump,developers said. is.There are no more slam dunks. As Warren Seil,vice president with building,the owner of a project hires
When things were on a roll,every- Speculative projects are drying up, Morgan/Harbour,says,the Wheeling an architect and then puts those draw-
one and their mothers were opening a and will continue to do so in 2009,he project is a true public-works project. ings out to bid.This very beginning
said.At the same time,the number of The village will house its police,pub- stage of the process is a lengthy one
construction company, said Bill
Plesich, director of marketing with new retail projects,industrial centers lie-works department, engineering itself,as it can take anywhere from a
Columbus, Ohio-based Renier Con- and warehouse distribution centers is staff,vehicles and equipment and road- month to two months for the architec-
struction. These more challenging steadily falling, Bellina said, some- salt dump in the facility. ture team to draw the plans and about
times will weed out a lot of the weaker thing that will only intensify in 2009. They have everything covered there, four more weeks for the bidding
contractors.The ones who are finan- A lot of those projects have been put Seil said. process to play out.
cially set who are able to adapt to cur-
on hold,he said.It doesn't look great Greg Freehauf,vice president with There could be early problems,too.
rent market conditions, are the ones for 2009.There are a lot of sectors that Morgan/Harbour,said he expects to see What if the bids all come in too high?
who are still going to be here when the are definitely slowing down. municipalities continue to rely on the The design process has to start over
Bellina does see some good news, design/build method even more fre- again,costing more precious time.
economy starts to improve again.It's
just like in the housing industry.The though.The demand for healthcare and quentiy in the coming months and
ones who weren't financially secure medical facilities continues to grow, years. This is avoided in the design/build
have gone out of business already. and should do so throughout 2009,he Design/build for the most part has method.
said.Midwest construction companies been popular in the private sector.But In design/build,we are working with
Preparing for a tough 2009 are being called upon to build more now we're seeing more of it in the pub- pricing much closer,Seil said.We can
Commercial construction work may biotech research laboratories and the lic sector,Freehauf said.It is attractive put together a budget much quicker.
developments that spring up around to both the builder and the public That's what we did on this particular
have slowed in 2008. But industry
iherrs worry that this year may only them. municipality because it gives you the project,and it is paying off in a com-
e beginning of a long stretch of Senior-living facilities are becoming advantage of fast-tracking a project and pressed construction schedule.
ggish building activity. a mainstay in the commercial construe- compressing its schedule.It gives you William Birck,president of Chica-
Commercial developers interviewed tion industry,Bellina said.And public- a better value for your dollar. Right
P Construction to next page
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