2019 Annual Report | Alexandria Area Economic Development Commission

2019 Trusted Innovative Bold Love of Community Annual Report Alexandria Area Economic Development Commission

2 019 Boa rd of dir ec tor s

Joa ni Ni e l s o n

J ul ie C r itz

N ic ole Klim e k

M a rk Gra ndgenett

City of Alexandria

Hudson Township

Alexandria Township

Lake Mary Township

J e f f Pati e n c e

E d d ie R e if

M atth e w Fisc h e r

Tod d Po wers

City of Alexandria

LaGrand Township

City of Alexandria

Carlos Township

President

Vice President

Secretary/Treasurer

Past President

Community Liaisons: Mayor Sara Carlson

Commissioner Charlie Meyer

Joel Dahlheimer

Justin Dahlheimer

City of Alexandria

Douglas County

LAEDA

Osakis EDA

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Dave Wolf

Ted Cash

Gardonville Cooperative Telephone Association

ALP Utilities

Tara Bitzan Alexandria Lakes Area Chamber of Commerce

E xecutive Director L etter It is with great pride that we present the annual report for the Alexandria Area Economic Development Commission. This this report will provide a glimpse of our area successes in 2019, including company investments totaling over $35 million.

Without a doubt, this was a very impactful year for the Commission, and we are extremely proud of those accomplishments. In November, the Commission released a new strategic plan for our organization. Its focus is two-fold: 1) to increase the pipeline of workforce talent; and 2) to advance economic, community, and workforce development for this regional center community. The strategic plan will set in motion our game plan for advocating and advancing economic development efforts to ensure a bright future for this community and region.

As we enter 2020, we must continue our efforts to entice and encourage investment in our community by our manufacturers and support industries.

We can achieve this through the use of our economic development tools, by marketing this vibrant region, and strengthening our workforce by supporting the work of the Alexandria Technical and Community College. We will also continue to encourage entrepreneurship through our business planning resources in collaboration with all the support that exist throughout the region.

On behalf of the AAEDC Board of Directors and Staff, we appreciate all of you who make our work meaningful.

Warm Regards,

Nicole Fernholz Executive Director Alexandria Area EDC

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W h o W e A re The mission of the AAEDC is promoting prosperity and optimizing opportunity in the Alexandria region.

We do this with support from the Lakes Area Economic Development Authority (LAEDA) by providing fair and equitable resources.

Through joint strategic planning processes between the AAEDC and the LAEDA, core initiatives and strategies are defined to develop a shared vision of the future and to identify goals and objectives against which progress toward achieving that vision can be measured.

The vision of the AAEDC is that the greater Alexandria Area is known as the premier place to call home, build a career, and grow a business. It is a place with leading-edge technology, infrastructure, and unparalleled talent, set within a geographic area of immense natural beauty.

To ensure long-term vitality for economic development efforts in the Alexandria Area, the AAEDC sought legislative authority and received approval in 2003, to create the Lakes Area Economic Development Authority (LAEDA). The LAEDA model is the first of its kind in Minnesota to bring together communities and townships under a formal structure with designated EDA powers.

Our Values T rusted|We commit to transparency and integrity in all we do. innovativ e|We embrace the future and new ways of doing business.

B old|We rise to the challenge.

Lov e of Com m unit y|We believe in the power of doing things together.

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Futur e Pla ns

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Increase Retention & Success of Alexandria Area Businesses Increase the pipeline of workforce talent, provide in-demand business workshops, and increase the use of business loan programs.

Recruit Businesses to Locate Here Create an incentive package, promote the area to prospects, and assist with site selection and financing.

Enhance Our Entrepreneurial Ecosystem Assist 4-6 start-ups each year, assess feasibility of creating business incubator, and assess interest in launching 1 Million Cups Chapter.

O th er Programs & Pa r tn er s hip s Mic ro loa n P o l i cy

C i t y H ousi ng Assi stanc e P r o gram (C H AP )

To assist with business start-up costs, the Greater Alexandria Industrial Network (GAIN) introduced a new microloan available to any for-profit business in Douglas County. This is a direct loan that may be used for all costs demonstrated as essential for the project, up to $10,000.

The City of Alexandria revised their (CHAP) policy to include all buildable parcels within city limits.

CHAP was established by the City and EDA in 2002 and modified in 2003. The Program has been working efficiently for the last 15 years to assist low- and moderateincome families with the acquisition of a single family home.

H ousi ng Trust Fund The City of Alexandria created and established the Alexandria Housing Trust Fund. The Trust Fund is to provide loans and grants to homeowners, as well as for-profit and non-profit housing developers, for the acquisition, capital and soft costs necessary for the creation of new affordable rental and owneroccupied housing.

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2 019 Economic Devel op men t P r oj ec ts

Copper Trail Brewing Company: DNA Landholdings was created to be a property holding entity for Adam & Dave. They each own a 50% share in Copper Trail Brewing Company, LLC, which they founded in 2016. The owners requested $25,000 in financing to purchase a building located at 205 Broadway to operate Copper Trail Brewing Company. GAP financing was utilized from the Greater Alexandria Industrial Network for assistance with the initial equity in the build-out of the building.

Alexandria Industries: Alexandria Extrusion Company started building a 19,000 square foot addition to its existing facilities. The expansion will allow the company to extrude an additional 10.5 million pounds of aluminum. Total project cost is $19 million. To assist with the project, the Alexandria EDA extended the TIF note for four years. They also signed a resolution of support for the company to apply for the Job Creation Fund through MN DEED. This program is available to manufacturing companies that invest at least $250,000 in Greater Minnesota and creates at least five new jobs paying at least $13.61 per hour.

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Golden Retriever: Golden Retriever is a non-emergency medical transportation service in Douglas County founded in 2018. The company received a $5,000 micro loan from GAIN to purchase a handicap-equipped van and transport chair.

Central Lakes Apartment: The Alexandria EDA reviewed and endorsed the housing development proposal for the construction of 32 units of affordable housing in the city of Alexandria by D. W. Jones, Inc. and Alexandria HRA. This project would be applying for tax credits from Minnesota Housing, and, as a public match, the EDA approved a TIF district note in the amount of approximately $400,000. This project is on 2.05 acres of land. The structure will be a threestory building with an elevator and 34 units. All units will have a deck/patio and have affordable rents with 40 % of the units being occupied by individuals whose incomes are no more than 60% of the Area Median Income for Douglas County.

Total project costs are estimated at $6.8 million.

Four Seasons Carwash Alexandria LLC: Partners in a car wash will be purchasing 1.76 acres of land on 44th Avenue West in Alexandria to become the site of an all-season car wash. GAP financing of $50,000 was utilized from the Greater Alexandria Industrial Network for assistance with the initial equity in the purchase of the land. Total project costs are $4.3 million.

Central Lakes Apartment Workforce Housing: In 2018, the Alexandria City Council selected D. W. Jones, Inc. as developer of a workforce housing project in Alexandria. The Workforce Housing Development Program requires at least a $1 match for every $2 provided in Workforce Housing Development Program funds. The City of Alexandria approved a $539,402 TIF note as their local match to the project. This multi-family housing project is on 2.05 acres of land owned by the HRA. The structure will be a three-story building with an elevator and 36 units. 20 % of the units are occupied by individuals whose incomes are no more than 50% of the Area Median Income for Douglas County. Total project costs are $5.6 million.

Reprocessed Plastics, Inc: RPI, located at 8301 County Road 82 NW in Garfield, constructed a 13,000 square foot addition to their facility to increase their ability to recycle HDPE waste into industrial products. Garfield supported a resolution of support of RPI’s application for a Job Creation Fund destination through MN DEED. JCF is a pay-for-performance program that provides financial benefits after job creation and capital investment thresholds have been met. RPI committed to $640,000 of capital expenses and 20 new positions of at least $13.61 per hour.

Industrial Land: GoodNeighbor Properties, LLC purchased three LAEDA owned industrial lots to construct a 45,000 square foot facility that will include warehouse space for GoodNeighbor Properties, LLC. Construction will begin in 2020 and be completed by 2021. Estimated property value upon completion is $2.8 million.

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Com m u nity and W orkforce Devel op men t A bby Strom |

Ac ad emi es of Alex and ri a

The Academies of Alexandria continued to play a big role throughout the Alexandria Area in 2019. The Alexandria Area High School (AAHS) Community & Workforce Development Coordinator and AAEDC were busy connecting students with businesses in the community, to help provide new opportunities in pursuing a career they can be passionate about. These unique experiences are preparing students for their future, whether they continue their education or step directly into the workforce. Throughout the four Academies, approximately 3,904 hours were volunteered in the 2018/2019 school year.

E n t r e p r e n e u r and Small Busi ness Trai ni ngs The AAEDC and ATCC Customized Training Center teamed up for another year to offer regional small business trainings for entrepreneurs and small businesses in the Alexandria Area, with funding provided by West Central Initiative (WCI). We were very pleased with the number of classes and attendees this year: 10 different classes were held throughout the Spring and Fall, more than 41 different businesses were touched and 256 people attended throughout the year.*

T R A INING S OF F ERED •

How to Start Up an Internet Business

•

Making Great Customer Service Contagious in Your Organization

•

Gmail, Google Drive, and Google Apps

*Please note that the 256 is a duplicated head count, meaning some of the same people attended multiple sessions.

•

How to Deal with Difficult People Without Becoming One

Wes t C e n t ral M N Wag e & B e n e f i t s S u rv ey

•

How to Be Successful Starting or Growing Your Family Child Care Business

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Google Drives and Google Apps

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Applying Emotional Intelligence for Career Success

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Are You Fit to Run Your Business?

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Conflict Resolution and Negotiation

•

Employment Law 101: An Overview of the Most Common Mistakes Small Employers Make

Every other year the AAEDC assists SHRM in their Wage & Benefits Survey, a comprehensive survey of compensation, company benefits, and policies for the West Central MN Area. In 2019, 55 companies participated in the West Central MN Wage & Benefit Survey (38 companies reported for both surveys, 13 reported benefits only and four reported wages only).

The AAEDC collects and compiles all the data into a final document for participating companies.

West C e n t ral M N E m p l oy m e n t L aw U pdate The 16th Annual Employment Law Update was held June 5, 2019.

Attorneys from throughout the state presented four breakout sessions in the morning: •

10 Tough FMLA Questions and Their Answers - Working Through Leave Law Issues That Are Often Difficult and Confusing

•

8 Key Whistle blower Cases Every Employer Should Know and Understand to Prevent Liability

•

Hot off the Press: Employment Law News You Can Use

•

Pay Equity - Why It Matters to Employers

The sessions were followed by a Q & A panel discussion.

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Com m u nications & M ar keting

Business & Industrial Appreciation Day

October 8, 2019 was declared Geneva Capital Day in honor of their being named the 2019 BIAD-awarded recipient by the AAEDC & Alexandria Lakes Area Chamber of Commerce. The event was a celebration of the success, growth and impact Geneva Capital has had on our local and statewide economy.

There were 480 attendees for this year’s event held at Arrowwood Resort and Conference Center.

Pitch Your Plan |

In 2019, the AAEDC launched a new business competition which was open to current or prospective entrepreneurs. They would have an opportunity to pitch for a for-profit business idea and a chance at a community prize package valued over $38,000. Eligible business concepts were limited to a business start-up, a second or third location of an existing business elsewhere, a significant expansion of a current business with a new concept, product or service line, or a relocation of an existing business currently outside of Douglas County. There were three phases. First, fill out an online application with six simple questions. Up to 10 applicants advanced to phase two, where they worked on building a business plan. Three finalists then advanced to the final phase and delivered a shark-style presentation to the judges. In the end, Copper Trail Brewing Co. was the winner, expanding their business to downtown Alexandria.

Engage

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fac e b o o k l ik e s

& Retain | The AAEDC partnered with local agencies to put on an employer summit focusing on engaging and retaining workforce. The event kicked off with keynote presenters Kelly Ashe, from the Center for Rural Policy and Development, and Neil Linscheid from the University of Minnesota Extension. They addressed resident recruitment, the “Brain Gain” and creating a culture that encourages employee retention. Attendees broke out into round-table discussions to hear what other employers are doing to address the workforce shortage. The event finished with regional employers on a panel relating their company’s successful retention practices.

Lenders Luncheon |

Community lenders and individuals who provide business financing and consultation services were invited to a luncheon to learn about area and business assistance programs, such as: City of Alexandria Loan Funds, SBA 504 Program through Minnesota Business Finance Corporation (MBFC), SBA Loan Basics & SBDC Updates, and WCI Lending Programs.

Tour of Manufacturing | There were seven companies that participated in the 2019 Douglas/Pope Tour of Manufacturing: Brenton Engineering, Donnelly Custom Manufacturing, Douglas Machine, FAST Global Solutions, LGC BioSearch Technologies, Massman Automation, and ITW Heartland. The tours were held October 8-11 with more than 650 community members participating. Overall, it was a great event for our communities to showcase the diverse manufacturing we have in the area.

AAEDC Publications Alexandria Area Fact Guide | This demographic guide gives an overview of statistics from the Douglas County area.

Financial Assistance Guide | Provides information on the financial incentives and revolving loan options for start-up and expanding businesses from around the area.

Livability Guide | AAEDC in partnership with the Alexandria Chamber of Commerce put together a flipbook featuring both visitor and livability information for people looking to learn more about the Alexandria area

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A le x an dria Area D evelopment The Alexandria area continues to be a vibrant regional center. These projects represent a sampling of the area’s commercial development. Each of these projects has an estimated valuation/cost of $100,000 minimum. *Douglas County no longer does cost valuation; the buildings below are believed to be over $100,000 based on square feet.

Area Projects

Type

Cost

Commercial Alteration

$100,000

New Construction

$108,730

Innovative Builders

Commercial Alteration

$123,000

Brian P Johnson Construction, Inc.

Commercial Alteration

$139,000

Regency Midwest Ventures Douglas County

Highpoint Homes Incorporated

New Construction

$180,000

Justice Construction Company

New Construction

$225,000

Northern Food & Dairy, Inc.

New Construction

$225,000

Rodel Construction, Inc.

New Construction

$290,000

B Way Holdings, LLC

Commercial Alteration

$300,000

Bluedot Construction Services, LLC

Commercial Alteration

$320,000

New Construction

$375,000

Highpoint Homes Incorporated Innovative Builders

Commercial Alteration

$375,000

New Construction

$380,000

Innovative Builders

Commercial Alteration

$500,000

Wal-Mart Real Estate Business Trust

Commercial Alteration

$650,000

LRP Construction Services, Inc.

Srock Construction, Inc.

Commercial Addition

$730,000

Northern Food & Dairy, Inc.

Commercial Addition

$1,060,000

GoodNeighbors, LLC

New Construction

$1,073,669

The Tradesmen Construction, Inc.

New Construction

$1,800,000

Innovative Builders

New Construction

$2,415,000

Kuepers, Inc.

New Construction

$3,100,000

New Construction

$3,300,000

Commercial Addition

$3,391,000

Kuepers, Inc. Innovative Builders Sletto Properties, LLC* Ronald & Rebecca Joyce* Jay Morrell Properties*

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Commercial Warehouse Commercial Tasting Room Commercial Shed

Lakes area economic d ev elopment a ut hor ity

P OW ERS OF EDA’S • Tax abatement • Ability to enter into contracts • Sale of bonds • Economic Development

The AAEDC works in partnership with the Lakes Area Economic Development Authority to meet their overall goals. The LAEDA was organized in 2004 through special state legislation with approval of the State of MN and the organization’s founding members to formalize and stabilize the funding process of economic development efforts in Douglas County, MN. Because of the long-term nature of many initiatives and investments needed to continue to grow our community, stable funding is crucial to the success of economic development efforts.

The mission of the LAEDA is to support the mission of the AAEDC by providing fair and equitable resources.

Districts • Levying of taxes • Creation of Tax Increment Financing (TIF) Districts • Acquisition and sale of real estate and personal property • Participation in limited partnerships

BUSINESS STRATEGIC

BOARD OF DIRECTORS

PARTNERSHIPS

The LAEDA model is the first of its kind in Minnesota to bring together communities and townships under a formal structure with designated EDA powers.

Board of Directors for the LAEDA include: Mayor Sara Carlson (City of Alexandria), Joel Dahlheimer (Alexandria Township), Diane Erickson (LaGrand Township) and John Nienaber (City of Garfield).

A formal partnership between the City of Alexandria, the City of Garfield, Alexandria Township and LaGrand Township that is considered to be an innovative model in addressing local, long-term economic development issues across geographical boundaries.

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Alexandria was named Minnesota Monthly’s Best MN Town in 2019