Work Plan 2011-2012

CITY OF NORTHFIELD

ECONOMIC DEVELOPMENT AUTHORITY 2011-2012 Work Plan

Approved by EDA Board: May 26, 2011

KEY ACCOMPLISHMENTS IN 2011 Community Video

Economic Development Newsletter

This project was completed in early 2011, and is being used by a number of organizations in Northfield seeking to market various aspects of the City. In the fall of 2009, representatives from the Archer House River Inn/Rebound Enterprises, Carleton College, Northfield Area Chamber of Commerce and Northfield Area Convention and Visitors Bureau, Northfield Downtown Development Corporation, Northfield Historical Society, Northfield Hospital and Clinics, Northfield Public Schools, and St. Olaf College met with a sub group of the EDA to discuss their interest in jointly developing a community video for the City of Northfield. The group interviewed firms and selected Blue Moon Productions because they believed the company could deliver a project to the professional standards that is expected by the community.

In 2010, the EDA released its first newsletter highlighting a number of economic development related projects in the community. A contact list of real estate professionals, development firms, and site selectors was purchased from the Business Journal and combined with a list generated by City staff. The purpose of the newsletter is to heighten awareness of community- and economic development-related projects. The quarterly newsletter is also used as collateral marketing to prospective businesses.

http://ci.northfield.mn.us/assets/e/EDA/northfield_videos.html

Neuger Communications Expansion

Funding for the Arts The EDA passed a motion at its May 26, 2011, Board meeting approving the funding for the Riverwalk Market Fair, Inc. (RMF) - $5,000, Riverwalk Arts Quarter, Inc. (RAQ) - $3,000, NorthfieldArts.Org - $5,000. The Board determined that the three organizations provide a public purpose and fall under the scope of work of the EDA. The Board also requested that a letter of commitment be provided to the Riverwalk Market Fair organization in order to assist them in their efforts to obtain the matching funds from the Southern Minnesota Initiative Foundation (SMIF).

MIF Flood Loans

Project Funding: Total Renovation Cost EDA Loan Applicant’s Funds

$ 497, 000.00 $ 75,000.00 $ 422,000.00

100% 15% 85%

Neuger Communications Group has been in operation for over nine years and continues to demonstrate its commitment to grow its business headquarters in Northfield as evidenced through their announcement to move into the former Community Resource Bank at 25 Bridge Square. The move required a major renovation of the building, but will allow for the company’s plans to double their staff over the next couple of years.

Northfield City Hall

The City of Northfield was awarded $257,500 from the Department of Employment and Economic Development (DEED) on April 22, 2011, to assist local businesses affected by the September 2010 flood. Eligible businesses were able to apply for funds to assist with recovery efforts related to building repair, leasehold improvements, fixtures and equipment, loss of inventory and cleanup costs. Funds may not be used for economic injury losses, relocation, debt consolidation, or moving and operating costs.

Businesses were able to apply for funds up to $50,000, repayable over 10 years at 0% interest with 50% of their loan forgivable if the applicant remains in business for 10 years. The other 50% is retained by the City to be used in a revolving loan program for other businesses to utilize for expansion and enhancement.

801 Washington Street 1

Northfield MN 55057

At the July 5, 2011, City Council meeting members voted

INTRODUCTION

on a motion to retain the EDA and appoint a subcommittee

The Northfield City Council passed a

of the City Council to bring back proposed changes to the

motion (M2011-060) at their April 5, 2011, regular

EDA’s enabling resolution and related documents, clarify

meeting directing the EDA to perform the following task:

the roles and responsibilities of the EDA, and the implementation of the items outlined in the Clough Report.

In the next 60 days, the EDA Board will:

The motion also stated that the City Council will identify the EDA’s strategies and partnerships they believed were

 Provide a report to the City Council detailing specific

necessary to accomplish the Council’s economic

actions and accomplishments made by the EDA from

development priorities as passed on June 21, 2011. The

January 2009 to the present, to implement the

City Council would then meet jointly with the EDA to

economic development goals and strategies outlined

determine a work plan for accomplishing assigned goals.

in the City of Northfield’s Comprehensive Economic

Additionally, the motion recommended that the Mayor

Development Plan and Comprehensive Plan.

bring forward candidates to fill the current vacancies on

 City Council will complete an assessment of the

the EDA Board. This motion passed.

economic development goals and strategies referred to above in the economic development plan 2006,

GREENSTEP CITIES

amend that slate if needed, and identify the strategies and partnerships needed to achieve these objectives.

The City Council shall then decide whether to retain the EDA as recommended at the conclusion of the Clough report.

 EDA shall submit a 2011 work plan with an accompanying budget to the City Council for approval.

CITY COUNCIL DIRECTION

The GreenStep Cities program is a voluntary initiative sponsored by the MN Pollution Control Agency (MPCA)

1. Progress Report on 2006 Comprehensive Economic Development Plan 2. Provide Annual Reports for 2009 & 2010 3. Produce 2011 Economic Development Work Plan 4. Produce 2011-2012 EDA Budget 5. GreenSteps City Gap Analysis

to help cities around the state become more efficient and sustainable with the ultimate goal of cutting greenhouse gases. The City Council has recognized that this program fits with the City’s goal of environmental and financial sustainability. The GreenStep Cities program is meant to

The Economic Development Board submitted a report to

be a community effort with many opportunities for

the City Council at their June 7, 2011, Work Session

individuals and local organizations to get involved.

which included the Progress Report of the 2006 Comp.

Northfield completed the initial stages to become a Level 1

Economic Development Plan, Annual Reports for 2009 &

GreenStep City in 2010. The City is now working to

2010, and the EDA’s 2011 Work Plan and Budget.

2

become a Level 2 city by completing 8 Best Practices

The City Council requests staff and boards and

(required for a "Class A" city in the program). To become

commissions to:

a Level 3 city we must complete 16 Best Practices. On

 Incorporate the goals of the GreenSteps Cities

April 5, 2011, the Northfield City Council adopted



Resolution 2011-041 on implementation method and motion to direct City Boards and Commissions to work on



the program.

 

program into their work plans; Recommend local partner groups that could work with the City to pursue specific action steps of the GreenStep Cities program; Add GreenStep Cities program to the City Council decision matrix; Apply for a Greencorps volunteer; and Provide quarterly progress reports on GreenStep Cities implementation.

PARTNER ORGANIZATIONS The Northfield Economic Development Authority has a

Department of Employment and Economic Development

long history of working closely with its partners to accomplish those initiatives that advance the economic development goals of the City. These relationships enable the City to provide businesses with an incredible array of

Rice County Economic Development

information and professional services. Access to financial incentives, assembling developable land, generating business leads, and creating synergies within the existing business community all help to facilitate a positive environment for business growth.

The combination of these exceptional organizations position the City of Northfield to be the most efficient first point of contact for persons and businesses hoping to expand, startup or relocate in Northfield. In turn, the City of Northfield is best equipped to manage the development process in a consistent and sustainable manner that will enhance the

Northfield Downtown Development Corporation

chances of success for both private investors and public stakeholders.

Recent examples of this exceptional collaboration has led to

Northfield Enterprise Center

the successful completion of the Northfield Community

Northfield Round Table

Brochure, Community Video, Rice County Economic Impact Analysis, and Retail Trade Analysis Report.

3

POLICY AND PROCEDURES February 1, 2011 – The City Council met and discussed three options

N ORTHFIELD C ITY C OUNCIL

presented by the Mayor on how they could resolve the issue of

Economic Development Priorities

appointments to the EDA. The City Council agreed to secure the services of a neutral party to evaluate perceived issues with EDA processes and functions. The neutral party would conduct personal interviews with members of the EDA and staff. The neutral party would then report back to the Council at a work session with findings and recommendations for areas that need review.

Adopted June 21, 2011

This list represents City Council economic development priorities intended to provide information and guidance for the Council, the Economic Development Authority, and other boards, commissions, organizations and constituencies. It is based on input from City Council members and discussion at a City Council work session on May 24, 2011.

Mr. Thomas Clough of Horizon Associates, Inc. was retained by the

Strategic Priorities

City and asked to evaluate the processes and functions of the EDA.

Retain and grow existing businesses. The most

Since 1989, Mr. Clough has worked as a principal of Horizon Associates, Inc., a consulting firm that provides planning services for a broad range of non-profit organizations. Mr. Clough’s work focuses on strategic, financial, and organizational planning for non-profits, particularly those that face major challenges in funding their missions.

Mr. Clough outlined the following process and steps in order to prepare his report to the City Council: 1) Define interview questions and review with City Administrator.

2) Conduct interviews with 18 members of City Council, EDA, City staff, and HRA. 3) Diagnose perceived issues with EDA process and function and develop hypotheses about possible improvements.

4) Review diagnosis and possible improvements with City staff, EDA, and City Council to identify areas of agreement and disagreement.

5) Draft final findings and recommendations.

At its March 22, 2011, work session the City Council received and filed the report submitted by Tom Clough concerning the Northfield EDA. On May 26, 2011, the EDA Board approved the 2011-2012 Work Plan which included implementing the recommendations from the Evaluation of Northfield Economic Development Authority Process and Function Final Report, March 31, 2011 (aka, the Clough Report).

The EDA has incorporated the recommendations identified in the 4

important economic development priority for Northfield should be to retain and grow existing businesses, including not only industrial, commercial and retail firms but also agriculture, education and health care. This goal should be pursued by surveying the needs of local businesses and employers with regard to land availability, recruitment and retention of employees, financial assistance, taxes and other factors bearing on business decisions about location, investment and growth. Based on this survey, the City should develop appropriate infrastructure, financial incentives, information and other resources that would enable both existing and new businesses to succeed and grow in Northfield.

Actively recruit new businesses. The second most important priority for Northfield should be to actively market the City and recruit new businesses. The greatest emphasis should be to recruit new businesses that complement existing businesses; businesses from target industries identified in the 2006 Comprehensive Economic Development Plan; businesses that employ highly talented and creative staff; and small, entrepreneurial, high-growth businesses.

Maintain and enhance Northfield’s downtown and its distinctive quality of place. A third priority for economic development in Northfield is to maintain and enhance the character and economic vitality of the downtown, which is a major contributor to the City’s distinctive quality

of place and life. To accomplish this goal, the City should develop and market Northfield as a recreation, tourism, arts and conference destination, in order to attract visitors and enhance opportunities for Northfield residents. In doing so, the City should build on assets like the historic and aesthetic character of the downtown, the Cannon River, arts and history programs and events, and local foods and farmer’s markets.

Encourage graduates of local colleges and other highly talented and creative people to develop and grow businesses in Northfield. Northfield is an especially attractive city for talented, creative people, including graduates of Carleton and St. Olaf Colleges, to live and work. The City should market itself to such people and develop programs that encourage them to build talentbased businesses in Northfield.

Organizational Priorities

Broaden participation in economic development.

Economic development is essential to the future welfare of Northfield and its residents. The City should develop ways to broaden community input and participation in economic development. It should engage leaders from business, education and health care in developing economic initiatives. It should organize opportunities for community input into economic development goals, strategies and priorities. It should convene task forces that involve the EDA, other boards and commissions, businesses and nongovernment organizations to carry out economic development projects. It should increase the participation of the City Council in formulating economic development goals and strategies through regular plans, meetings and reports.

Explore regional economic development strategies. The City should explore and develop possibilities for collaboration with surrounding cities and towns, Rice and Dakota Counties, and the larger southern metropolitan area in pursuing economic development initiatives.

Clough Report as follows: Policy and procedures/Clough Report recommendations  Develop process for regular meetings with the City Council and Planning Commission to formulate shared understanding of Northfield’s economic development strategies.  Undertake Mid-term strategic planning process to establish economic development goals.  Coordinate forum to review community-wide economic “dashboard” indicators.  Clarify working relationships with funded and unfunded partners to shape collaborative efforts to achieve the City’s economic strategic plan.

Improve process and cooperation  Follow agendas and manage meetings efficiently.  Develop policies for conducting meetings, dealing with differences, clarifying the role of the Executive Committee and other issues.

 Train EDA members in conducting orderly meetings in compliance with statutes, bylaws, rules of order and responsibilities of EDA members stated in the handbook.  Appoint EDA members with demonstrated capacity for cooperation, negotiation and compromise.  Evaluate EDA members perceived as problematic and replace those whose conduct is incompatible with the EDA’s effective functioning (inefficiency, neglect of duty, misconduct).

Clarify roles, responsibilities, communications and reporting relationships among City Council, EDA and City staff  City Council responsibilities and accountability to the community.  EDA responsibilities and accountability to the City Council.  Staff responsibility and accountability first to the City Administrator and second to the EDA.

 City Council representatives to the EDA. Develop mechanisms for seeking outside advice and community input  Periodic meetings with leaders and experts in all business and community sectors.  Conduct periodic community surveys on economic development goals, priorities, strategies and plans.

Develop clear policies and criteria for evaluating development projects, business subsidies and infrastructure investments  Evaluation criteria should reflect mission and goals for economic development.  Policies and evaluation methods should provide guidance on how to set priorities and allocate resources for economic development.

Develop four-year strategic and financial plans for economic development  Scope: four year planning horizon; limited strategic objectives; updates every two years.

 Match planning period and reviews to City Council election cycle and two-year budgets.

Establish regular performance evaluations for the EDA  Identify objective measures of mission/goals and strategic/financial plans.  Supplement with community surveys and interviews with community leaders.  Conduct self-evaluations every two years.  Solicit City Council review, revision and approval of self-evaluation.

Ensure adequate professional support from City staff and outside consultants  Assess capacity and availability of current staff to provide adequate professional staff support to the EDA.

 Use outside consultants and experts to supplement City staff when needed.

5

INFILL AND REDEVELOPMENT      

Review policies, procedures and governance documents, as recommended in the Clough Report.

Review/amend/adopt potential changes to Bylaws, Micro Grant, and Land Acquisition Policy.

Revamp a detailed, timely inventory of available properties (Process).

Develop a Request for Proposals for redevelopment of key downtown properties: i.e. Q block, Crossing site, Post Office if appropriate.

Solicit requests for EDA-administered grant and loan funds Revamp business retention plans and programs.

businesses to established areas of the community. This would maximize existing infrastructure while increasing the commercial and industrial tax base.

The Clough Report suggested, and the EDA Board agreed, that a review of the EDA’s governing documents and assistance programs was needed to determine whether changes were necessary for the EDA to successfully carryout the City Council’s and EDA’s economic development initiatives. Additionally, the EDA Board has identified the draft Land Acquisition policy as something they desire to finalize.

The EDA Board has taken the position that since the genesis of the organization it has served as the lead economic development agency for the City of Northfield.

As such, the Board believes that it is important to remain actively involved in potential redevelopment projects (i.e.

Q block, Crossing site, Post Office) in ways that will advance a positive outcome.

Infill is the construction of new buildings within existing urban areas on vacant or underutilized parcels of land. It may be as simple as building a single family home on one lot in an established neighborhood or as complex as creating a mixed-use center for offices, housing and retail on a much larger piece of land. Infill parcels are generally located in areas with water, sewer, transportation and other services in place.

Redevelopment is finding new or more intensive uses for land or buildings within an existing urban area. It may involve replacing existing structures with new ones or converting them to new uses. Redevelopment also can result in a change in use, such as replacing existing homes with apartments or building a restaurant on a parking lot.

Redevelopment is typically market-driven. It usually occurs when a developer or community group determines that a new use for a site will be more profitable or productive than the current use.

The Economic Development Authority continues to emphasize the importance of attracting new and expanding 6

BUSINESS RETENTION AND EXPANSION   

Existing Business Survey Coordinate with Economic Development Partners on regular visits Serve as an Economic Development advocate to businesses – strengthening local operations

Nationally, 40-80 percent of new business growth is generated from existing companies. Without fostering an existing business program, a community's best companies could be our competitor's best prospects. The purpose of a business retention and expansion program is to establish relationships between community businesses and economic developers to strengthen existing companies, establish early warning systems to flag at-risk businesses that require assistance, and ensure that public programs meet local business needs. Business retention initiatives usually include a mechanism for linking expanding businesses with public programs designed to mitigate growing pains and regulatory issues. Retention programs involve educating the stakeholders, recognition events, headquarter calls, periodic surveys, interviews, and visitations with companies to evaluate the assets and opportunities.

Other ways to utilize the results of a survey of Northfield’s existing employers:

 Media releases as to the summary of the survey results and the organization’s role in the survey program can be developed.

 Public presentations to elected officials as to the survey results are one means of either continuing or obtaining media coverage of the survey, especially if the survey results are particularly newsworthy. Such presentations are also one means of demonstrating the commitment of the economic development organization to the business community and its willingness to represent it. Survey results can also be used in seeking changes to local policies identified in the survey as negatively impacting local businesses.

Many economic development professionals describe the importance of an existing business survey tool as the ability to gather strategic information for marketing which should become a top priority for every development organization. Internal information resources should create opportunities and anticipate changes that impact businesses within a community. The emphasis of the retention survey instrument should be on capturing three types of information: customer satisfaction, predictive information, and marketing research.

 Incorporate results of the survey into the economic development organization’s annual report. Also, include outcomes of the survey into presentations the organization may be asked to make to civic organizations.

 Use survey results to identify possible short-term and longterm trends the economic development organization can consider incorporating into its annual business plan. For instance, other longer term quality of place issues raised in the survey could be formally communicated to local governments for incorporation into their planning activities.

Without an effective retention and expansion program, opportunities will be lost. Increasing the return on investment from retention and expansion efforts will enhance the value. The intent is to tap into the knowledge of area executives cultivating business strategy information that will identify opportunities for the community and economic development organizations to promote or enhance.

Northfield’s EDA and its economic development partners will jointly conduct a survey of existing employers to gather information intended to strengthen their operations in the community.

7

CCEDP

City Council Economic Development Priority May

June

City Council Direction Progress Report on 2006 Comprehensive Economic Development Plan

X

Provide Annual Reports for 2009 & 2010

X

Produce 2011 Economic Development Work Plan

X

Produce 2011-2012 EDA Budget

X

GreenSteps City Gap Analysis Policy and Procedures/Clough Report Recommendations X

Develop process for regular meetings with the City Council and Planning Commission to formulate shared understanding of Northfield’s economic development strategies.

Undertake Mid-term strategic planning process to establish economic development goals.

Coordinate forum to review community-wide economic “dashboard” indicators.

Clarify working relationships with funded and unfunded partners to shape collaborative efforts to achieve the City’s economic strategic plan.

X

Review policies, procedures and governance documents, as recommended in the Clough Report.

Review/amend/adopt potential changes to Bylaws, Micro Grant, and Land Acquisition Policy.

Infill and Redevelopment Revamp a detailed timely inventory of available properties (Process).

CCEDP

X

Develop a Request for Proposals for redevelopment of key downtown properties: i.e. Q block, Crossing site, Post Office, if appropriate.

Solicit requests for EDA-administered grant and loan funds.

CCEDP

Revamp business retention plans and programs.

CCEDP

X

Business Retention and Expansion Existing Business Survey.

CCEDP

Coordinate with Economic Development Partners on regular visits.

X

Serve as an Economic Development advocate to businesses – strengthening local operations.

CCEDP

X

Business Park Master Concept Plan Follow City Council direction on the use of Business Park Master Concept Plan.

Formally adopt Bus. Park Master Concept Plan & follow-up with land owners regarding next steps.

Identify potential State & Federal financing for business park.

Communications and Marketing Produce quarterly newsletters and other publications highlighting business opportunities in Northfield and provide follow-up to Community Video

X

Develop and produce a “Get to Know Northfield” developer and site selector forum promoting infill redevelopment and greenfield development in the new business park.

Engage colleges and large employers in collaborative effort to attract new businesses and redevelopment to Northfield – Leverage Alumni.

Continue to provide tools and resource materials for employers and others to use to promote Northfield – on going.

8

CCEDP

X CCEDP

July

2011 –2012 August

Approved by EDA Board, May 26, 2011

September

October

November

December

Responsibility EDA/staff EDA/staff EDA/staff EDA/staff EDA/staff

EDA/staff, Council X

EDA/staff, Council X

EDA/staff, consultant (?)

EDA/staff, , Chamber, NDDC, NEC, Colleges

X

EDA/staff

EDA, Chamber, NDDC, Realtors X

EDA/staff EDA/staff, NDDC, NEC

X

EDA/staff, NDDC, NEC, Chamber

X

EDA/staff EDA/staff, NDDC, NEC, Chamber

Council EDA, Council EDA/staff

X

X X

EDA/staff EDA/staff, NDDC, Chamber EDA/staff, Chamber EDA/staff,

9

EDA LOAN PORTFOLIO SEPTEMBER 2011

DEBTOR

STATUS

REMAINING BALANCE

DATE OF MATURITY

SKETCHY ARTIST

Current

7,420.42

December 14, 2014

ALETON, LLC

Current

33,870.05

August 16, 2020

JB ENTERPRISES

Current

3,239.44

September 29, 2014

NORTHFIELD DEV. - MEDICAL ARTS

Current

3,984.01

December 18, 2013

NEW DIVISION DEVELOPMENT

Current

64,414.65

October 9, 2023

Late

13,841.55

September 24, 2014

COCOA BEAN - SEELEY

Current

2,731.88

June 14, 2012

ID INSIGHT - FORGIVABLE LOAN

Current

50,000.00

December 31, 2011

JEKKEL LTD

Current

44,703.81

February 12, 2013

Late

43,832.94

August 15, 2023

NEUGER COMMUNICATION

Current

73,939.04

July 29, 2021

STRATAPOINT

Current

30,967.95

September 3, 2014

*AESCENDANT ACCESSORIES

1,100.00

October 29, 2012

*CHAPATI, INC

8,600.00

October 15, 2012

*FROGGY BOTTOMS

20,000.00

October 15, 2012

*HVISTENDAHL, MOERSCH, DORSEY *JEKKL LTD *LARSON'S PRINTING

20,000.00 18,100.00 20,000.00

December 23, 2012 October 8, 2012 October 8, 2012

*MANAWA LLC

13,791.45

October 15, 2012

*WEST BANK PROPERTIES

20,000.00

October 15, 2012

BUTLER'S INC.

R FAMILY FOODS

2010 FLOOD LOANS

TOTALS *24 MONTH BALLOON LOAN W/PRINCIPAL & 1.5% INTEREST DUE

Balance available to lend

83,004.81 As of September 30, 2011

Origin of Loan Funds The funds used to capitalize the Downtown Revolving Loan originated from the $500,000 sale of the city owned property referred to as “ The Crossings”. The Economic Development Authority dedicated these funds to benefit economic development projects located strictly in Northfield’s Downtown Business District. In 2010, the EDA purchased the StrataPoint and the R Family Foods loans from the Master Development fund. The EDA purchased those loans in order to provide liquidity to the Master Development Fund as it is scheduled to expire in 2013.

10

566,345.19

NORTHFIELD ECONOMIC DEVELOPMENT AUTHORITY BUDGET Actual 2009

Actual 2010

Approved 2011

Requested 2012

Requested 2013

REVENUES Levy Market Value Credit Loan Payments Interest from Loans Interest Income Misc. Income Subtotal OPERATING EXPENSES Personnel {b} Supplies Consulting Legal Auditing & Accounting Data Processing Telephone Travel & Training Expenses Dues & Membership Insurance Transfer Out - IT Support Administrative Charges Subtotal Programs Promotional Advertising Development Loans Loans transfer from Muni Dist. #4 Unallocated {c} Alumni Outreach Marketing Brochure Holland, MI Business Park Riverwalk Arts Quarter Business Recruitment & Marketing Infill & Redevelopment {d} Other Micro Grant Subtotal

$

225,035 10,582

$

58,731

$

294,348

$

$

55,407 900 13,703 4,179 648 400 196 1,510 452 2,640 (80,035)

$

$

$

248,952 37,558 11,000 22,700

$

221,834 40,000 11,000 21,680

$

221,834 40,000 11,000 21,680

$

320,210

$

294,514

$

294,514

99,272 442 11,116 1,153 490 287 2,305 165 2,640 (117,870)

$

60,177 5,000 5,000 5,000 2,000 3,000 500 4,000 4,000 2,764 2,640 (94,081)

$

81,233 500 5,000 9,120 2,000 400 500 4,000 500 2,764 2,640 8,808 (117,465)

$

$

84,856 500 3,497 7,000 2,000 400 500 4,000 500 2,764 2,640 8,808 (117,465)

$

51,049 25,000 (76,049)

$

(50,000)

$

$

$

Partner Support {e}

$

(108,350)

$

(90,000)

$

(110,000)

$

Total Operating Expenses Less Revenue

$

(343,322)

$

(637,494)

$

(521,681)

Total Appropriated Fund Balance

$

(48,974)

$

(289,124)

$ $

(201,471) 238,823

$ (243,514) $ 243,514 $ -

$ (243,514) $ 243,514 $ -

$ 1,375,149

$

987,194

$

732,649

$

$

49,856

$

98,414

$

149,414

$

200,414

$ 1,326,174

$

1,037,050

$

831,063

$

933,063

$

984,063

Loan Reserve Fund Balance December 31

$

$

6,140 3,884 91,756 7,500 11,907 13,750 (154,937)

Primary

20,000 -

$

41,007 121,592 86,099 158,339 2,405 20,182 (429,624)

Fund Balance January 1:

$

$

235,664 11,716 37,558 9,372 33,561 20,500 348,370

$

15,000 77,600 200,000 25,000 (317,600)

$

$

51,049 25,000 (76,049) (50,000)

783,649

{a} Includes investment earnings & interest payments, loan principal has been excluded in years 2011-2013 {b} Community Development Director 60%, Housing Manager 15%, Adm. Assistant 5% {c} Produce quarterly newsletters and other publications highlighting business opportunities in Northfield; provide follow-up to Community Video; Develop and produce a "Get to Know Northfield" forum for developers and site selectors to promote infill redevelopment and green field development in the new business park; Engage colleges and large employers in collaborative effort to attract new businesses and redevelopment to Northfield; Leverage Alumni to continue to provide tools and resource materials for employers and other to use to promote Northfield - on going. {d} Budgeted but not assigned to specific project in 2011 {e} Budgeted amount for partner organizations NEC, NDDC, & SMIF including the Arts and Cultural funding for 2011

11

783,649

education to economic development and the opportunity

COMMUNICATIONS AND MARKETING    

presented by the graduates of St. Olaf and Carleton

Produce quarterly newsletters and other publications highlighting business opportunities in Northfield and provide follow-up to community video.

Develop and produce a “Get to Know Northfield” developer and site selector forum promoting infill redevelopment and greenfield development in the new business park.

Engage colleges and large employers in collaborative effort to attract new businesses and redevelopment to Northfield – Leverage Alumni.

Continue to provide tools and resource materials for employers and others to use to promote Northfield – on going.

Colleges make the attraction and retention of alumni a promising strategy for developing Northfield’s talent base.

The EDA endeavors to look for ways to collaborate with St. Olaf and Carleton Colleges to reintroduce their Alumni to the community and remind them of the virtues of raising a family or starting a business in Northfield. The Comprehensive Economic Development Plan suggests doing this in the following ways:

The Economic Development Authority has received positive feedback from the organizations and companies



Mail and e-mail campaign. Create letters, direct mail

that have utilized the City’s collateral marketing pieces.

materials, and website linkages aimed at increasing

The EDA has exhausted its supply of the community

alumni’s awareness of opportunities and advantages of

brochure it developed in 2010 and will update and reprint

living in Northfield.

the brochure in 2011. The brochure has been used to solicit



Alumni publications. Use these publications to

new businesses and recruit new professionals to the

communicate with alumni by: 1) drafting articles on

community by both colleges and local industry. The EDA

topics of interest to the alumni (as complements to

will also continue its quarterly newsletter which highlights

mail and e-mail campaigns); 2) placing

the community and its businesses.

advertisements. 

Events. Ensure that relevant events are marketed to

A quarterly newsletter can serve a number of purposes for

area alumni. Encourage St. Olaf and Carleton College

an economic development agency. It can be used to inform

alums already in the community to assist in this effort.

businesses, site selectors, realtors, and developers of the economic development initiatives underway in the community (new or expanding business operations).

A newsletter may also assist the community to convey a particular message or brand for the community.

Stories about local business successes will promote the EDA as an effective organization and promote the community as a business-friendly place to operate a business.

The colleges provide a steady stream of talent to the community. Collectively, they enroll nearly 5,000 students who are considered among the nation’s best and brightest. The growing relationship of higher 12

BUSINESS PARK MASTER CONCEPT  Follow City Council direction on the use of the Business Park Master Concept Plan.  Formally adopt Business Park Master Concept Plan and follow-up with land owners regarding next steps.  Identify potential State/Fed financing for Business Park .

The Northfield Business and Industrial Park Master Plan process was conducted to develop a vision for the expansion of commercial business development within the City based upon recommendations originating in the City’s Comprehensive Plan and Economic Development Plan.

The 2006 Northfield Comprehensive Economic Development Plan identified a lack of industrial space and land resources to accommodate future business expansion within the City limits and recommended the City initiate the several strategies to diversify the City’s economic base. These strategies formed the foundation of the master plan:  Make land available for business expansion,  Identify preferred development sites,

approximately 530 acres of land from Greenvale Township

 Develop a plan for future business and industrial

to accommodate future business and industrial growth.

growth,

Subsequently, the Northfield Economic Development

 Develop marketing and recruitment strategy,

Authority initiated a master planning process and created a

 Concentrate on the needs of existing businesses,

Steering Committee. The Committee met over a period of

 Maintain Northfield’s quality of place,

12 months.

 Maintain and enhance the existing downtown,  Attract and retain talent,

The City Council expressed some concern about a few

 Increase range of housing options,

items and requested that the Planning Commission review

 Create entrepreneurial and innovative startup

those items and report back to the City Council for final

opportunities, and

consideration. The Planning Commission completed their

 Take steps to integrate City’s growing Hispanic/Latino

review on April 21, 2011, and forwarded recommended

population.

As a result of the recommendations proposed in the

changes to the City Council for final consideration. The

Comprehensive Economic Development Plan, the City of

City Council has not taken further action on the Business

Northfield identified the need to annex additional lands

Park Master Plan.

into the City for future business and industrial growth

The EDA Board is prepared to serve in whatever capacity

along with the need to develop a plan and guidelines for

the City Council deems appropriate and desires to have the

each parcel of land. In 2009, the City annexed

plan formally adopted.

13

OTHER 2011 ECONOMIC DEVELOPMENT CITY STAFF NORTHFIELD AREA YMCA In July the Northfield Area Family YMCA submitted a proposal for the construction of a new facility that is approximately 46,000 square feet in size. The facility will include the following amenities: indoor family/ recreational pool, gymnasium, family adventure center, multipurpose studios for classes and group functions, indoor walking/jogging track, child care area, and wellness studio. The facility is a two-story building located near the

The YMCA is a locally owned non-profit public charity.

corner of Jefferson Road and Honeylocust Drive. This

Their mission is to build strong kids, families, and

project involved replatting an outlot as a single lot through

community. The YMCA is governed by a volunteer board

a minor subdivision. The proposed YMCA facility was

of directors and has numerous volunteers that contribute to

interpreted to be included with the use of Public and Semi-

the organization. It is anticipated that the YMCA will

public buildings that is listed as a conditional use in this

employ 5-10 full time employees and approximately 125

zone.

part time employees. Hours of operation will generally be Monday through Friday, 5:30 am-9:30 pm, Saturday 7:00 am-9:00 pm, and Sunday 10:00 am-6:00 pm.

WATER STREET REDEVELOPMENT The City received development proposals from the owners

City staff worked with Council members Buckheit and

of Froggy Bottoms (David Hvistendahl) and the owners of

Nakasian to develop a request for proposal (RFP) for the

Basil’s Pizza (Theologia Pitsavas). Each proposal

redevelopment of City property located on Water Street.

provided a comprehensive plan for the properties, although the proposals were vastly different in their approach.

Froggy Bottoms proposes to reuse the existing properties with upgrades and rehabilitation to the front façade and back deck. The proposal from Basil’s opts instead to demolish the existing properties and rebuild a structure adjoining their current building, including an eight foot public access to the Riverwalk.

To provide a comprehensive yet impartial evaluation of each proposal, City staff used the language in the RFP to determine how or if each proposal addressed the requirements. Staff identified 15 items the RFP addressed 14

and used those as a basis to determine how or if each

successes for the West Bank businesses. The City Council

proposal addressed those items. This allowed staff to

reviewed the two proposals and made a determination that

identify the strengths within each proposal, and identify

the proposal submitted by the Pitsavas family more

challenges that are present with each plan.

accurately represented their vision of redevelopment on the City owned property.

Each proposal has definite strong points and clearly identifies their vision for redevelopment and future

SAVE THE NORTHFIELD DEPOT On July 5, 2011, the Northfield City Council passed a motion officially supporting the relocation and restoration of the historic Northfield depot to the City’s property located between 2nd and 3rd Street west commonly referred to as the “Q-block�. Additionally, the City accepted the financial responsibility for expenses associated with development of a survey, legal description, Phase I environmental assessment, and any legal or consultant work associated with purchase of the property in an amount not to exceed $11,000. City staff is currently

and development agreement with representatives of the

working through the terms associated with the purchase

Save the Northfield Depot.

CARLETON COLLEGE PARKING NE corner of Union and 2nd Street to address parking demand. The property is located in an area referred to as the College Development Zone, a zoning classification that provides guidance for development transitioning from College uses to residential neighborhoods. The College held a number of meetings with representatives of the neighborhood association to provide and receive input Over the last couple of decades Carleton College has

about the project and respond to potential concerns. In

acquired property near its campus that has been converted

September City staff approved a site plan for the

into various campus uses. As the result of these property

development of a parking lot that is functional yet

acquisitions, the College has identified the property on the

aesthetically pleasing to neighboring properties.

15

TOP 2011—2012 PRIORITIES Northfield GreenSteps Initiatives

Economic Dashboard Indicators

The GreenStep Cities program is meant to be a community effort with many opportunities for individuals and local organizations to get involved.



Benchmarks & Community Engagement

In order for the community to accurately project and react to certain economic conditions, it needs to have a system in place for the collection of data over an extended period of time. The EDA and its economic development partners will develop an Economic Dashboard Indicator which will track such things as: unemployment figures, retail sales, job growth, median household incomes, etc.



Green Business Development

Additional Funding 2012: $10,000



Renewable Energy



Local Food Business Synergies

The City Council requests staff and boards and commissions to incorporate the goals of the GreenStep Cities program into their work plans.

Economic & Community Development

Communications & Marketing Communities market to achieve multiple economic

Leverage Alumni & Local Businesses

development objectives, including: attraction, retention,

The City views the Colleges and its Alumni as potentially one of the best economic development resources for attracting and retaining business to the City of Northfield. The same can be said of the existing businesses that are located in the community.

The EDA will continue to identify opportunities to engage the Alumni from Carleton and St. Olaf Colleges and existing Northfield businesses to advance their economic development initiatives.

and expansion of businesses; attraction and retention of

Additional Funding 2012 & 2013: $20,000

Additional Funding 2012: $10,000

residents and tourists; improvement of the community's image locally, nationally, and internationally. Over the last couple of years, the EDA has produced a quarterly newsletter that is used to reach a broad audience.

Additionally, the EDA will be utilizing other methods to communicate the economic development virtues of the community.

NORTHFIELD ECONOMIC DEVELOPMENT AUTHORITY BOARD MEMBERS Ms. Jenelle Teppen, President

Mr. Jack Hoschouer

Appointment Expires: 12/31/2012

Appointment Expires: 12/31/2015

Mr. Steve Engler, Vice President

Vacant

Appointment Expires: 12/31/2011

City Council Representative

Ms. Rhonda Pownell, Secretary/Treasurer City Council Representative

Appointment Expires: 12/31/2013 Vacant

Appointment Expires: 12/31/2012

Tel 507.645.3018

Vacant

Appointment Expires: 12/31/2014 Email

Jody.Gunderson@ci.northfield.mn.us 16