EDA MEETING PACKET 08-11-2024CITY OF SCANDIA
ECONOMIC DEVELOPMENT AUTHORITY
Monday, August 11, 2014
6:30 P.M.
Seandia Community Center Board Room
1. Call to Order
2. Approval of Minutes (July 14, 2014)
3. Approval of Agenda
4. Public Forum
5. New Business
a) Business Assistance Programs/Policies
b) Election of Officers
1) President
2) Vice President
3) Treasurer
4) Secretary
5) Assistant Treasurer
6. Old Business
a) Preparation and Outline for Business Meeting(s)
b) Industrial District Permitted Use Suggestions
7. Commissioner Reports
8. Executive Director's Report
9. Date and Agenda Items for Next Meeting
10. Adjournment
The Scandia Economic Development Authority met in the Board Room at the Scandia
Community Center on Monday, July 14, 2014 beginning at 6:33pm. Commissioners Present:
Tom Triplett, Greg Isaacson, Dan Lee, Sally Swanson and Bruce Swenson. Staff Present:
Kristina Handt.
The meeting was called to order at 6:30pm by Swanson.
Motion by Lee, seconded by Triplett to approve the June 9, 2014 minutes. Motion carried.
Motion by Lee, seconded by Swenson to approve the agenda. Motion carried.
Commissioners reviewed an outline of the agenda for a meeting with the business community.
Triplett suggested changing item 5 to a two part question: What is needed to make Scandia a
better place to do business? What is the most important thing the EDA can do to help the City?
Triplett also mentioned the need for a medical building/center. Lee mentioned the need for
elderly housing. Swanson suggested an announcement and agenda be mailed to the businesses.
Two meeting options -breakfast and evening -will be offered and businesses asked to RSVP to
one. Meetings will be scheduled in the fall. At the next meeting commissioners will decide who
will address each agenda item.
Handt provided examples of Industrial District zoning from other communities. Commissioners
noted that Scandia's was much more restrictive on permitted uses. Commissioners will further
review the examples and compile a list of permitted uses they'd suggest to the Council.
Commissioner Reports: Triplett asked about having a proactive response when we hear about
businesses selling. Someone to approach them and ask if there is anything we can do. Swanson
reported on the success of the Fat Cat Triathlon.
Executive Director Report: Handt reported that Midcontinent came in Friday and said
Wyldewood Acres may meet the requirements in the agreement for extension of services. To
date, 13 BRE s have been returned. Handt met with a marketer for the Tii Gavo lots last week.
The next meeting will be Tuesday, August 12, 2014 at 6:30pm. Agenda will focus on assigning
tasks for business meeting agenda, industrial district zoning suggestions and EDA programs to
assist businesses.
Motion by Triplett, seconded by Isaacson to adjourn. Motion carried. Meeting adjourned at 7:45
pm.
Respectfully Submitted, Kristina Handt, Secretary
i
SCANDIA
Stuff Report
Date of Meeting: August 11, 2014
To: Economic Development Authority
From: Kristina Handt, Executive Director
Re: EDA Programs
Background:
At our last meeting Commissioners discussed the desire to look into creating programs or incentives to
assist development in the City.
Issue:
What programs/policies should the EDA adopt or recommend?
Proposal Details:
Included in your packet is a recent article in the League of MN Cities magazine about two cities'
approach to economic development. I've also included the brochures from the Jordan and Pine City
EDAs as examples.
Some possible programs or policies to consider would be:
1) Revolving Loan Fund
a) Business Rehab (Facade )
b) Business Start Up
c) Home Improvements
2) Forgivable Loans/Grants
3) Tax Increment Financing
4) Tax Abatement
Fiscal Impact:
May vary depending on project. EDA could also establish some limits on the loans/grants such as
$5,000-10,000 per project. May also require matching contribution from business.
ALBERT LEA
Tax abatement approved .
for professional companies
Hoping to lure new professional sea -
vices to town or promote the growth
of existing ones, the Albert Lea .City
Council has approved anew tax_abate-
ment program.
The program targeting dental,med-
ical, financial and other services will
rebate a decreasing portion of taxes
to eligible businesses over five years,
with 90 percent rebated the first year,
80 percent the second, 70 percent the
third, 60 percept the fourth and 50 per-
cent the fifth.
Businesses have to meet certain
thresholds to qualify, including creat-
ing five frill -time jobs at ll0 percent of
the community's median income level
within the first two years and invest-
ing at least $250,000 in capital improve-
ments.
Ttieideapromotes "truing to create
some higher paying jobs in the comin' u=
nity," said city manager Chad Adams.
"There's always discretion from the
city to approve or not approve a cer-
tain proposaL"
PAM LOLrWA- E @pamlouwagie
Two -Way Street',
How Has Your City Promoted
Economic Development?
CHRIS GIESEN
ECONOMIC DEVELOPMENT COORDINATOR
CITY OF HARMONY
The City of Harmony and the Harmony
Economic Development Authority (EDA)
established an innovative program in 2009
to improve the look, value, and structural
quality of commercial buildings. Located
in southern Fillmore County near the Iowa
border, Harmony has about 1,000 residents.
Business rehab
Harmony's Commercial Rehabilitation Program provided up
to $10,000 per property in the form of a forgivable loan to
make a variety of exterior enhancements. Exterior windows,
doors, siding, roof repairs, signage, brickwork, energy effi-
ciency improvements, accessibility issues, and code violation
corrections were all eligible expenses. The program also
required a dollar -for -dollar match; to receive the full $10,000
award, applicants had to invest an additional $10,000 of their
own funds.
In many cases, businesses would do needed upgrades like
replace an aging furnace system. This program allowed them
to also replace inefficient windows and doors or outdoor sig-
nage essentially for free, creating a win -win situation.
Structure and investment
The program was structured as a 0 percent APR loan with a
five-year term. The principal amount would be forgiven at a
rate of 20 percent each year. No payments were due unless the
owner sold the building within the five-year term of the note,
in which case the owner is responsible to repay the appropri-
ate pro -rated principal amount back to the EDA.
Harmony initially invested $150,000 into the program, but
these funds were expended within two years, prompting the
City Council to approve additional projects on a case -by -case
basis. In total, the city invested nearly $182,000, sparking an
additional $213,000 of private investment into 25 commercial
properties throughout the community.
Shot in the arm
We feel it was a tremendous success. An informal poll iden-
tified 35 buildings in need of exterior repair, so we were able
to address over 70 percent of the issues the EDA identified.
Nearly 50 percent of all the funds spent through the program
were spent with Harmony businesses, and about 35 percent
within the region. This was definitely a shot in the arm, espe-
cially during the Great Recession.
KRIS BUSSE
CITY ADMINISTRATOR
CITY OF OWATONNA
Owatonna (population 25,400) uses a
collaborative approach to economic devel-
opment. The city formed a group in 2006
called the Owatonna Partners for Economic
Development (OPED). Made up of rep-
resentatives from the city, county, utility,
business incubator, and chamber, this group
brought to fruition a complicated project that saved Owa-
tonna taxpayers over $1.4 million and revitalized an entire
city block.
Empty hospital buildings
The complication arose when tht hospital announced plans to
move in 2006. The city -owned former hospital, built in 1931,
had multiple additions and was located in a residential neigh-
borhood adjacent to a church. The reuse had to be compatible
with the neighborhood.
Church leaders investigated acquiring the property, but the
demolition costs prohibited that. Although the property was
professionally marketed, the building remained empty for
almost four years. The city had ongoing carrying costs, and
the estimated cost for demolition totaled $1.4 million.
Fareway Foods was interested in building a new grocery
store at the centrally located site. And Mayo Clinic was inter-
ested in part of the old hospital. But both were discouraged by
the high demolition cost.
Overcoming financial obstacles
To overcome these obstacles to redevelopment, the city
employed tax increment financing (TIF), and established a
redevelopment district with a 25-year life. Unfortunately, even
with this tool, there was a sizable gap left to fund the demoli-
tion and construction costs.
To close the gap, partners were needed. OPED facilitated
the collaboration efforts of the city, Steele County, Mayo
Clinic Health Systems, Sacred Heart Church, Front Door
Realty, Allina Health and Owatonna Public Utilities. Each of
the partners contributed to close the gap.
Winning partnership
With the help of all the partners, a development agreement
involving Mayo, Fareway, Sacred Heart Church, and the city
was signed in 2012. As a result, the old hospital facility has
been demolished, Mayo Clinic has new office space, and the
community has a new grocery store, new jobs, improved
access, and room for a needed church expansion.
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In these pages you'll find an introduction to our community, the
resources we bring to the table, and some of the people, compa-
Il,
nies and organizations that make this the premiere place in Minne-
sota to build a business and a future.
Whether you are considering a technology business start-up, or
ti looking for a place to relocate an existing business, Pine City is the
community that will work for you.
Walk along 5th Street, and you'll step into nostalgia. Witness the
historic side of Pine City, a community that came into its own in
Lot._
the 1880s, with leftover evidence from the railroad. Pine Citians
take great pride in our small-town history, and the value of know-
ing our neighbors.
R;
V
:S Look a little closer and you'll find a community that's wired for the
21st Century. While we still hold to small-town community values,
we are also fully engaged in building a thriving commercial sector
that reaches customers across the nation, and around the world.
•- i
.i .
n, Location, Location
All of the benefits of a major city, with the safety and comfort of a small town. That's the story
for Pine City, MN. Conveniently located just an hour's drive north of Minneapolis -St. Paul with
easy access on Interstate 35, Pine City is within reach of customers, suppliers and an entire
marketplace of services and resources.
THE PINE CITY MARKET AREA
Pine City is not your typical small town. With one of the State's fastest growing colleges, the
community boasts a highly educated and skilled workforce, a high level of community
engagement, and a widely -diversified commercial and industrial base. The town's roots are in
agriculture and logging but its future is in new technologies. From Post -it° notes to docks and
boat lifts, Pine City has a solid business base in a wide range of industries. Being the county
seat of Pine County, Pine City is also a commercial and cultural hub for surrounding
communities and townships. The market area stretches south to the northern Twin Cities'
suburbs, east to Siren, Wis., west to Mora, and north to Moose Lake, drawing a commercial
base that includes nearly 55,000 consumers. This thriving regional center is a place of promise
for companies ready to relocate or expand.
To stimulate economic growth and development, the Greater Pine City area has more than 500
acres of land for commercial and light industrial expansion, demonstrating the community com-
mitment to sustaining a healthy and
growing economy.
THE TWIN CITIES
Often rated among the America's most
livable metropolitan areas, Minneapolis
-St. Paul is home to over three million
people, 34 Fortune 1000 corporations,
a top research university and industry
leading companies. With agricultural
processing giants like Cargill and Gen-
eral Mills, retail household names Tar-
get and Best Buy, and innovators in
medical technology and manufacturing
like Medtronic and 3M, the Twin Cities
are the economic engine of the upper
Midwest. The metro area draws people
and resources that are easily reached
from Pine City.
THE TWIN PORTS
The Duluth area, just to the north,
serves as the economic hub of
northeastern Minnesota. It has a great
tourism industry, an international
airport, and access to the St. Lawrence
Seaway.
PINE AND CHISAGO COUNTIES
The Greater Pine City area straddles the
border of Pine and Chisago counties.
The city lies entirely within southern
Pine County but those in northern Chi-
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sago County —part of the Twin Cities'
13-county Metropolitan Statistical Area —gravitate toward Pine City as well. This proximity to
the metro offers substantial benefits to companies in certain industries. Whereas Pine City, a
rural/exurban county, enjoys favorable tax rates and economic development opportunities
designed to stimulate and sustain rural economies.
Diversified Local
EDUCATED WORKFORCE
A strong public education system makes this an attractive place to raise a family. The city is
also home to one of the State's leading technical colleges, Pine Technical College. PTC has been
one of the fastest growing technical colleges in the MNSCU system for the past several years.
The college offers a unique blend of classes and opportunities in gunsmithing, prototyping and
reverse engineering as well as automotive technology, nursing and health sciences. Students,
faculty, staff and alumni contribute to making Pine City one of the best -educated communities
in the region. Combine that with the traditional values, ingenuity and the work ethic of a re-
sourceful rural community, and you've got a can -do workforce capable of meeting almost any
employment need.
INDUSTRIAL SUCCESSES
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TICIa OMY PARK
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From lakefront docks to custom -designed
automation systems, Pine City is home to more
industries than meets the eye. It is home to more
than 10 innovative and tech -intensive businesses,
some with global reach:
Atscott Manufacturing is an industry leading
manufacturer since 1963. They produce precision
machine parts and mechanical assemblies as well
as portable towers for lighting and communications
uses.
Advance Design and Systems specializes in engi-
neering and fabricating automated equipment and precision fixtures for the medical, aero-
space, automotive, and assembly industries.
Broekema Beltway USA, Inc. produces conveyor belts for vegetable harvesters.
DAKA Corporation has been serving the construction & manufacturing industry since 1977.
Metal Division: Structural steel, miscellaneous metals, custom metalwork for commercial/
industrial buildings, also OEM metal fabrication. En-
ergy Division: High -quality wood burning furnaces.
Marine Division: Design and fabrication of commercial
and residential docks, lifts and Lakeshore equipment. --------
Lake Superior Laundry serves the health care and hos-
pitality industries across the State and in Western
Wisconsin.
Leisure Designs, Inc. performs customized, rotational MMACK
molding and thermoforming of plastic goods that are _
sold primarily in the marine and recreation industries.
Mercury Technologies of Minnesota, Inc. recycles
fluorescent and all mercury -bearing lamps. It also a _
provides recycling services for PCB ballasts, electronics
and a wide range of batteries. -
MINPACK, Inc. offers commercial printing, finishing, �t
converting, assembly, and packaging solutions for the ,
global market. ►;, _
Nu Design manufactures wire products.
Product Fabricators, Inc. is a precision sheet metal
manufacturer and powder coating facility.
LABORSHED
The Pine City laborshed reaches well beyond the borders of the community. The majority of
workers live in Pine County, while substantial numbers commute from Chisago and surrounding
counties. Between the local population and the Twin Cities metropolitan area, Pine City busi-
nesses are able to meet virtually any need for highly skilled or specialized workers. For families
relocating to Pine City, commuter bus from Forest Lake and area van -pool services to the Twin
Cities metropolitan area offer flexibility to people whose careers require access to a large num-
ber of potential employers.
nomic Development Partnerships
CAN -DO, WILL -DO ATTITUDE
Pine City has a powerful combination of public and private organizations to help businesses thrive.
The city's Economic Development Authority and City Staff work closely with the regional EDC and
other economic development consortiums charged with providing the resources — land and
buildings, technical assistance, and access to professional services — to strengthen the local
economy. From JOBZ applications seeking tax abatements, to applications for grants and project -
based loans, Pine City's focus is on helping businesses get up and running. And, with Pine City's
location just 65 miles north of downtown Minneapolis, the community boasts one of the closest
tax-free JOBZ development zones to Minneapolis.
BUILDING BUSINESSES ONE AT A TIME
City staff, together with a network of elected officials, citizen volunteers and development
partners, welcomes the opportunity to work with individual businesses to identify the right
strategies for relocations, start-ups, and expansions. From the development of a large-scale
technology park, to finding existing locations and buildings for smaller business throughout the
community, Pine City is a community that supports its own.
PINE INNOVATION CENTER
One of the city s primary
business development partners
is slated to open in 2013. Pine
Technical College will be home
to the Pine Innovation Center.
The technology business
incubator will be 7800 square
feet of new, open, and
adaptable space designed to
house up to three companies.
11 f
The incubator wi consist o two
interior office spaces for incubator occupants along with the open light -industrial advanced
technology floor. The Pine Innovation Center provides consulting services and technical expertise
to start-ups and growing businesses interested in relocating to, or expanding in Pine City. Pine
Innovation Center consultants evaluate products, services and markets, and assist with business
and financial planning. The organization maintains a network of experienced professionals pro-
viding a full range of support services: accounting, legal, banking, real estate, marketing, and con-
sulting.
GPS:4S:93
A regional economic development partnership dedicated to growing and attracting businesses
with high paying jobs to the region of East Central Minnesota. It's mission is to better position the
region to attract high -wage, technology jobs; to collaborate on business retention and expansion;
to recruit new businesses; and to encourage entrepreneurial activity within the region. In 2012,
GPS:45:93 created a "virtual incubator', designed to create more jobs and reduce unemployment
by assisting small businesses to become more viable and grow. Professionals in accounting, law,
marketing and business planning agree to donate free services to qualified businesses through the
virtual incubator program.
PINE CITY AREA CHAMBER OF COMMERCE
The mission of the Pine City Area Chamber of Commerce is to promote economic development
and business activity within the Pine City area. The purpose of the organization is to provide
promotional opportunities for the business community so that each business owner or citizen shall
prosper. The Chamber of Commerce has developed partnerships with the City of Pine City,
Economic Development Authority, and Pine Technical College in order to provide the greatest
number of opportunities to our business community. Through its members, meetings and public
forums, the Chamber is a pro -business advocate for a wide range of business issues in our
community. Additionally, the Chamber of Commerce organizes marketing and promotion of the
Pine City area through community events that bring people downtown and encourages the
community to celebrate — and support — Pine City.
Economic Development'erri�es
LOCAL TOOLS FOR FINANCIAL ASSISTANCE
Tax Relief Assistance: Job Opportunity Building Zone 0013Z) Eligible businesses can save money in
property taxes, corporate taxes, and sales taxes (This program is slated to sunset in 2015).
Tax Assistance: Tax Increment Financing (TIF) TIF financing is used to write down the cost of land
and improvements. TIF is basically the difference between the property's original property taxes
and the property taxes due after the property improvements have been completed. The tax incre-
ment can be used to help finance eligible costs associated with the project.
Financial Assistance: Pine City Revolving Loan Fund The City's Revolving Loan fund can provide a
low -interest, short-term gap loan to assist in the financing of projects of special interest to the City.
Business Consulting: SBDC Satellite Office Consultants can assist entrepreneurs with marketing,
business planning, and assess to financing. Services are offered at zero cost.
Shovel Ready -Certified Sites Our Shovel -Ready sites put Pine City in the best pos-
sible position to attract new business and industry. We've eliminated the most
gay time-consuming, technical and regulatory aspects of development. The are al-
s�P�sf ready complete; you just dig in and get started. p y
REGIONAL TOOLS FOR FINANCIAL ASSISTANCE
Initiative Foundation Offers a variety of financial loan programs to assist businesses with gap
financing.
Minnesota Community Capital Program Businesses located within the service territory of East Cen-
tral Energy can borrow up to $1.5 million with the support of East Central Energy and Great River
Energy.
Minnesota Investment Fund Loan funds are available from the Department of Employment and
Economic Development through the City of Pine City. The loan amount is based upon the number of
jobs created or retained and the wages paid.
East Central Regional Development Center Revolving Loan Fund The ECRDC serves businesses that
locate within Region 7E and can provide a low -interest, short-term gap loan to assist in the financing
of qualifying projects.
Minnesota Job Skills Partnership This is a competitive program to assist with customized worker
training. The training is provide at the business site by qualified trainers from a state college.
BANKERS
Pine City's banks and Economic Development Authority work closely with new and expanding businesses to
sources of financing, loan guarantees and grants. Pine City will work with these tools to take an active role in
nesses.
Advance Design
Q & Systems
!r-Changing
Engineering
Solutions for an
World
SPOTLIGHT: A PINE CITY SUCCESS STORY
After years of driving to the Cities to work as an engineer, Dave Crawford (Owner of Advance
Design & Systems) thought that there must be other talented people in the area making that
same commute. He pondered "Why couldn't a company be based in Pine City and utilize
technology to communicate with customers in the metro area?" On his way home from work
one day he noticed a for -sale sign on a building in the Pine City Technology Park. A little re-
search confirmed that the building was available and that the property qualified for Minne-
sota's JOBZ program (which was established to stimulate economic development in rural ar-
eas).
"I knew a little about JOBZ," says Crawford, "but with the City's help, we qualified for tax ex-
emptions that made the economics of starting a company work for us." The start-up has
been a JOBZ success. In the six years since opening, Crawford's firm has grown from two
employees to almost 20. Advance Design & Systems specializes in engineering and fabricating
automated equipment and precision fixtures.
"Advance Design & Systems could be located in a metro area, but we choose to be in Pine
City. Pine City offers us access to a talent pool, and it's a great place to live, work, and play"
says Crawford.
Even at a low point in the U.S. economy, in 2010, Pine City companies like Advance Design &
Systems were thriving and expanding their staff and buildings.
Deviopmot 0pporlr1ities
INFILL OPPORTUNITIES
Pine City offers a wide range of available buildings and development properties. From office and
retail space in the historic downtown, to commercial property with convenient highway access
along Interstate 35, to industrial spaces in the Pine City Technology Park, Pine City offers
flexibility and competitive prices for buildings, land, and rents.
Many available properties are listed in the Minnesota Department of Employment and Economic
Development's Positively Minnesota website (www.mnprospector.com). For information on
smaller properties, or to discuss a specific need, Pine City's Economic Development Authority is
available to help.
GREENFIELD DEVELOPMENT
In addition to space in the Pine City Technology Park, Pine City offers hundreds of acres of prime
development land in all corners of the city. Northridge Business Park and Evergreen Square
conveniently present direct frontage along the Interstate 35
corridor at both ends of the community, offering easy ac-
cess to Minneapolis -St. Paul and beyond.
UTILITY SERVICES
Electricity and natural gas service to Pine City is provided by
East Central Energy and Minnesota Energy Resources,
respectively. There are programs targeted toward those
businesses committed to sustainable energy use. Water
and sewer services are provided by the City of Pine City, at
rates well below those of the Twin Cities metro area. Basic
telephone, high-speed Internet, and fiber-optic connection
services are provided by a variety of companies, including
Centuryl-ink, Genesis Wireless and East Central Energy's
WildBlue, by Northland Connect.
TOP-10 QUESTIONS TO CONSIDER WHEN STARTING A NEW BUSINESS
The City of Pine City, Pine City Area Chamber of Commerce and Pine Technical College along with vari-
ous businesses have come together to create the Entrepreneurship Advisory Board. This group is devel-
oping ways to assist local entrepreneurs as they begin considering the option of starting their own busi-
ness.
What is the Product/Service?
What is the Unique Value Proposition? What makes it different or better?
What is the market opportunity?
• What problem do you solve?
• How large is the market?
• How fast is the market growing?
• Who is the competition?
How do you make money? What is the revenue model?
Who is the management team? How are they uniquely qualified?
What is the strategy? What are the long term goals? Short term goals?
How do you sell or market your product or service?
How much capital do you need or intend to raise?
• What are the primary start-up costs?
What are the projected financials for the company?
• What is the projected income statement?
What is the preliminary valuation of the company?
0 How much would you sell a percentage of your company for?
Qualof Community
COMMUNITY IDENTITY
Pine City is a uniquely balanced community. In the language of the Claritas PRIZM® system, Pine
City is largely Big Sky Families, with social and lifestyle segments of Multi-Culti Mosaic, New Home-
steaders, Striving Singles and Suburban Pioneers. Bottom line: Pine City is an educated, active,
innovative, family -oriented community.
CIVIC ENGAGEMENT
City government is organized under a council/administrator system. Citizen involvement is
extremely active through standing boards and commissions, as well as ad hoc, issue -oriented task
forces. Commercial and industrial development is guided by citizen boards including the Economic
Development Authority and the Planning Commission.
COMMUNITY SERVICE ORGANIZATIONS
From established service clubs like the Lions and the Scouts to the VFW and American Legion,,
there are dozens of ways to get involved in community life. Pine City is also served by more than
20 churches of varying religious denominations. There are summer youth sports leagues for base-
ball, soccer, basketball, tennis, as well as a full roster of school sports programs.
CITY PARKS
Whether you're a bird enthusiast, an avid hiker or canoeist, a snowmobiler, skater, disc golfer, or a
mother bringing her children out for the afternoon or a child looking for places to play, you'll find
the space you need to pursue what you love within Pine City's park system. There are a total of 12
parks within the City of Pine City including a public beach, skateboard park, sand volleyball courts,
picnic shelters and more.
UNIQUE EXPERIENCES
The community has a number of unique draws that excite visitors and residents. From April
through October, the Pine County Fairgrounds are filled each Wednesday with the weekly flea.
market. The flea market attracts 100-plus vendors on a continual basis, but there are always great
deals to be found. From June through October, Downtown Robinson Park is host to the Farmer's
Market in the Park where only homegrown or homemade products can be found. The Market in
the Park is held every Friday and Saturday from 11a.m. to 1p.m.
TRANSPORTATION NW Company Fur Pi
Pine City's Technology Park is located less than one mile from Interstate 35. The Rush City .
.6356
Regional Airport, just seven miles south, is served by a 4,400-foot runway. Minneapolis/St. Paul I www.mnhs.org
MSP international airport is located within 70 miles of Pine City. Jefferson Lines and County wide
bus systems are available and the St. Croix Valley Railroad runs daily freight service between North
Branch and Hinckley. All modes of transportation are close by which makes Pine City an ideal site trr a business
According to trucking companies, nearly all destinations in the continental United States and most major r "I ies in Canada
ico are less than 35 hours away by truck from locations in Pine City.
SCHOOLS
The Pine City Public Schools provide an excellent, comprehensive K-12 education through two elementary schools (one of
private, parochial K-6 program at the Immaculate Conception Catholic Church) and a junior/senior high school. Pine City
consistently perform well in comparison to other area schools. The NAMM Foundation named Pine City a "3est ComrT
Music Education" in 2010, 2011 and 2012.
Pine City is within an hour of over 50 post -secondary institutions providing technical and advanced educational programs w
than 100,000 undergraduate students. A top -ranked State college, Pine Technical College is located right in the communit
attracts approximately 1,000 bright and active students. The colleges' efforts to link students to local businesses and organiz:
through internships and volunteer service are a valuable contribution to the quality of community life.
ARTS AND CULTURE
There is always something to do in Pine City. A plethora of community events are open to the public, including concerts, plays,,
exhibits that are not typical for a community of Pine City's size. In addition, a wide variety of non-profit organizatrcns create a,
tapestry of programs for artistic expression and entertainment, from music and theater to dance and history.
Pine City, Minn.
Situated along the banks of the Snake River in the rich agricultural region of East
Central MN, the city is bursting with vibrant culture, esteemed academics, celebrated
arts, progressive technology, innovative businesses, and a cherished history.
The City of Pine City, the Economic Development Authority and a wide-ranging
professional community are committed to helping current and prospective
businesses obtain the resources necessary for success.
All photos have been provided by the City of Pine City unless otherwise noted. Front Cover Photos Provided by: Top Left -
Chamber of Commerce, Right— Chamber of Commerce
SCANDIA
Staff Repur�
Date of Meeting: August 11, 2014
To: Economic Development Authority
From: Kristina Handt, Executive Director
Re: Election of Officers
Background:
Per the resolution establishing the EDA and the Bylaws, the following officers of the EDA need
to be designated: President, Vice -President, Treasurer, Secretary, and Assistant Treasurer. The
President, Treasurer, and Secretary are elected annually. The Vice President and Assistant
Treasurer may hold office for any term as designated by the Board. The same person cannot be
President and Vice -President at the same time.
Last August the EDA appointed all positions for one year as follows:
President: Sally Swanson
Vice President: Tom Triplett
Treasurer: Dan Lee
Secretary/Asst Treasurer: Kristina Handt
Issue:
Who should be appointed to the officer positions of the EDA? What term is established for the
Vice President and Assistant Treasurer?
Proposal Details:
The Secretary and Assistant Treasurer need not be members of the Board. The President, Vice -
President and Treasurer shall be members of the Board.
Options:
1) Make appointments to all offices at this meeting
2) Post pone all elections until next meeting.
SCAN DIA
Stall Reporl
Date of Meeting: August 11, 2014
To: Economic Development Authority
From: Kristina Handt, Executive Director
Re: Business Meeting(s)
Background:
At our last meeting Commissioners discussed the desire to invite businesses to a meeting to hear from
them what the EDA or City might do to help their business. The draft agenda has been updated with
Triplett's suggestions.
Issue:
What should be on the agenda for the business meeting?
Who will cover each topic/lead the discussion on each item?
When should the meeting(s) be?
Are we serving food? Meal or refreshments?
Proposal Details:
An updated draft agenda for a meeting is included in your packet.
Commissioners may want to discuss agenda items 2 and 3 as a group and then assign a person to speak to
the business group on behalf of the EDA at the meeting. That way the spokesperson has some direction
from the board.
What does the EDA consider its accomplishments in this first year?
What are our goals for next year?
Fiscal Impact:
The EDA has not yet spent any of its $1,000 budget. Postage, food and other meeting supplies could be
provided within the budget.
SCANDIA COMMUNITY BUSINESS MEETING
SCANDIA COMMUNITY CENTER HALL
DATE
TIME
1) Welcome and Introductions, Sally Swanson, President, Scandia Economic Development
Authority (EDA)
2) Creation of EDA and First Year Accomplishments
3) Goals for Next Year
4) Why is Scandia a Great Place to Do Business?
5) What is Needed to make Scandia a Better Place to do Business?
6) What is the most important thing the EDA can do to help the City?
7) Next Steps
8) Adjourn
SCANDIA
StaifRenort
Date of Meeting: August 11, 2014
To: Economic Development Authority
From: Kristina Handt, Executive Director
Re: Industrial Park Zoning -Permitted Uses
Background:
At the June meeting the EDA reviewed some zoning issues that may be a challenge for encouraging
economic development. One specific area was the limited number of permitted uses allowed in the
Industrial Park zoning district. Staff researched examples from other communities to get an idea of how
Scandia stacks up and shared with the board in July.
Issue:
What uses should the EDA suggest to the Planning Commission/Council be permitted in the Industrial
District?
Proposal Details:
Commissioners may want to look closely at the City of Columbus as they are often used for comparison
to Scandia given their rural nature and limited development. Their permitted uses include:
1) Construction equipment sales and services
2) Contractor shops and storage yards
3) Welding and machine shops and similar services
4) Production, assembly, warehousing, distribution, and similar light industrial uses, except waste
management service industries and facilities
5) Landscaping businesses, commercial greenhouses, wholesale and retail sales of landscaping
materials.
6) Retail sales of new heavy equipment, repair of used heavy equipment, accessory to retail sales of
new heavy equipment
7) Light Industrial manufacturing, processing, assembling, storing, testing, or similar industrial uses
which are relatively clean, quiet, and free of objectionable or hazardous elements such as smoke,
noise, odor, or dust.
8) Wholesale sales and distribution of dry goods, hard goods, and general merchandise, warehouses,
and mini -storage warehouses.
From: Tom Triplett
To: Sally Swanson: Kristina Handt
Subject: Medical Services building
Date: Sunday, August 10, 2014 3:36:27 PM
Kristina, please forward on to EDA members. Thx.
Colleagues, when we last met I indicated my interest in pursuing this as one of the EDA's first
target developments for our city. I think this bldg with a full service medical clinic, a pharmacy, a
dentist and other med services like chiropractic could both be a huge service for our residents and
a draw for other development and population growth.
I asked Barbara Dacy, the head of our county Housing and Redevelopment Authority to research
how we might proceed, and here is her response. Her options, the most likely strategy is the first
one, is summarized as follows. This option is consistent with Greg's comments at our last meeting.
"Tom I think there are 3 options for Scandia.
The first option and most ideal is if Osceola Health could finance and "anchor" a multi tenant
building and lease to the dentist and chiropractors. I understand that Osceola is waiting on
determinations from the federal government on hospital/medical services issues with the
affordable Health Care Act. Ideally it would be great if all concerned would be willing to wait a year
or whatever the timeframe is in order to be a part of the vision and benefit of a medical services
facility that could house everyone. Osceola is in the best position to obtain financing I would think.
The second option is much more difficult and in today's market not possible, which is finding a
developer to build a multi tenant building and secure leases up front in order to be able to obtain
financing. This is a traditional speculative approach which according to the brokers that I contacted
is nearly impossible in today's environment. The commercial market is slower to recover and they
would require that 70 percent of a building would need to be pre -leased. I almost did not list it as
an option!
The third option is a marketing approach. It would be advisable to talk to a market consultant to
confirm the demand for medical services in scandia and get a feel for the area competition. It
sounds like Osceola wants to stay but for the new regulations... but will the new regs prevent other
services locating in Scandia? Once market demand is confirmed the city of Scandia EDA could
market a particular site(s) if available to medical service operators in general. In other words create
a program aimed at medical services exclusively and do aggressive marketing to attract and retain
a new provider. I emphasize that prior to initiating this option, getting more market data in this
sector is advisable.
I hope this is helpful. Feel free to call me or email if you have any questions."
I'd like to discuss this at our meeting on Monday. Tom
1
SCANDIA
Strr1J Repor
Date of Meeting: August 11, 2014
To: Economic Development Authority
From: Kristina Handt, Executive Director
Re: Director's Report
Met Council Housing Info:
The Met Council has released their draft regional housing plan. Public comment ends Sept 26th. You
can view information and a draft of the plan at this link:
hM://www.metrocouncil.org/News-Events/Housing/Newsletters/Draft-regional-housi»a-p Ian -aim s-
to-expand-hou sin P.aspx
This plan will influence the City's next Comprehensive Plan in that we are required to address how
we will provide for our allocation of low and moderate income housing.
HRA Meeting:
I attended the Washington County HRA's City/Township stakeholder meeting on July 17th. I've
attached a copy of their programs and their use in Scandia. I was surprised at how many Scandia
residents have used their foreclosure assistance counseling.
WASHINGTON COUNTY HRA PROGRAMS AND SERVICES
helping communities thrive
MARKET STUDY AND DATA PROVISION
The Washington County HRA informs stakeholders and decision makers in Washington County of the
needs and demands for a variety of housing types in their market area. The HRA engages professional
- - - - - - market researchers to complete this study of future needs every six years to guide land use and
financing decisions. On a monthly basis, the HRA informs cities of the volume, location, and trending of Sheriff Sales by
community. This information guides community response.
abGROW FUND
The Washington County HRA supports development and redevelopment initiatives through its GROW
Fund. The GROW Fund, capitalized by the HRA's levy, is a tool to fill gaps in rental and owner-
occupied housing developments as well as city and township -initiated redevelopment projects.
Redevelopment grants provide a fifty cents match to every dollar of city funds.
TECHNICAL ASSISTANCE
The Washington County HRA provides expertise to cities to fulfill their community development
efforts. At cities' requests, the HRA has provided acquisition, relocation, site assembly, financing,
grant writing, brownfield remediation, and other services to transform underperforming areas of the city
to award -winning neighborhoods.
FUNDING FOR PRIVATE AFFORDABLE DEVELOPMENT
The Washington County HRA financially supports the creation and rehabilitation of affordable housing,
redevelopment, and other community development initiatives through housing tax credits, bonds, and
-- TIF. The HRA is the sub-allocator of the tax credits for our county which is a key tool to raise private
equity for affordable rental developments. The HRA is authorized to issue tax-exempt and taxable revenue bonds for
multi -family housing and facilities projects which provide a lower debt service. The HRA is also able and authorized to
establish site -specific tax increment financing (TIF) districts for housing, redevelopment, infrastructure and other public
community improvements.
Adak SEPTIC SYSTEM LOAN AND GRANT PROGRAMS
The Washington County HRA mitigates the impact of failing septic systems on the County's lakes,
streams and rivers through a partnership with the County Public Health and Environment department,
which began in May 2014. The HRA processes applications for loans (and grants for income -qualified
households) to help our rural residents update their noncompliant subsurface sewage treatment systems.
COMMUNITY LAND TRUST (CLT)
The Washington County HRA maintains and produces affordable owner -occupied single-family homes
by providing staff resources to the Two Rivers CLT. Two Rivers CLT has a portfolio of 50 homes in a
model whereby a family owns and maintains a home on land owned by the CLT and leased to the
family. This model helps families who would not be able to afford homeownership through the traditional market.
r AFFORDABLE MORTGAGE PRODUCTS
The Washington County HRA provides affordable mortgages through participating lenders in the
Minnesota Cities Participation Program (MCPP). Mortgages are funded through a bonding allocation
which keeps the interest rates low. First time homebuyers must meet median income limits and
purchase price is below $310,000.
HOMEBUYER EDUCATION/COUNSELING
The Washington County HRA prepares homebuyers for successful homeownership through its
educational workshops and confidential and professional counseling. The HRA is a HUD -approved
housing counseling agency and provides counseling services at no cost to participants. Services address
budgeting, credit, mortgage lending, real estate services, home maintenance, and inspections.
FORECLOSURE PREVENTION COUNSELING
J The Washington County HRA mitigates the impact of mortgage defaults to homeowners and the
community. The HRA provides confidential and free counseling to homeowners struggling with their
mortgage payments. In 2013, our award -winning counseling team was able to advocate for and guide
327 homeowners through the process, resolving nearly 80% of all cases before a Sheriff Sale.
- HRA RENTAL HOUSING
The Washington County HRA sustains long-term affordability through its ownership and operation of
'i 1,036 units of affordable housing: 417 senior housing units and 619 family workforce housing units.
The apartments are primarily financed with housing revenue bonds with HRA levy pledged for debt
service. Twenty percent of the units are subsidized through federal public housing and Section 8 project -based programs,
which set rents based on a tenant's income. The restricted rents allow all HRA-owned units to be counted toward a city's
Metropolitan Council Housing goals.
1WRENTAL ASSISTANCENOUCHERS
The Washington County HRA helps maintain affordable housing costs to 650 families through a variety
of state and federal rental assistance programs: Housing Choice Vouchers (Section 8), Shelter Plus
Care, and Bridges. Residents find housing in the private market and pay a portion of the rent (based on
their income) and the HRA subsidizes a portion (within certain limits).
Affordable
Units
Funded
(June 2014)
Septic
Loans
(began
5/14)
CLT
Homes
(June 2014)
MCPP
Mortgages
(2013)
Homebuyer
Counselees
(2008-
2013)
Foreclosure
Prevention
Counselees
(2008-
2013)
HRA
Rental
Units
(June 2014)
Rental
Assistance
Participants
(June 2014)
Total
Afton
1
6
29
36
Bayport
1
1
2
25
1
30
Baytown Twp.
1
1
2
Birchwood
2
2
Cottage Grove
122
7
10
79
644
258
55
1,175
Dellwood
4
4
Denmark T
0
Forest Lake
286
10
7
40
222
140
48
753
Grant
1
1
7
9
Grey Cloud Island Twp.
I
Hugo
9
29
201
28
4
271
Lake Elmo
1
6
62
69
Lake St. Croix Beach
1
1
15
1
18
Lakeland
1
2
5
66
2
76
Lakeland Shores
0
Landfall
3
1
4
Mahtomedi
100
15
68
13
196
Marine on St. Croix
7
26
33
May Twp.
0
Newport
1
2
14
82
8
107
Oak Park Heights
2
3
34
120
1
160
Oakdale
641
23
25
105
412
209
210
1,625
Pine Springs
2
4
6
St. Ma 's Point
3
1
4
St. Paul Park
4
3
27
134
61
9
238
Scandia
6
45
40
1
92
Stillwater
180
3
5
85
258
90
66
687
Stillwater Twp.
1
I
West Lakeland Tw .
1
6
7
White Bear Lake
25
16
41
Willernie
4
13
17
Woodbury
190
1
14
173
668
84
90
1,220
TOTAL
1,519
8
53
79
638
3,047
1,030
510
6,884