2019-2020 Annual Report for Development Corp. of Austin (DCA)

Future site of the Nu-Tek BioSciences manufacturing facility in Austin, MN.

Letter from the Chair

Shelley King Chair, DCA Board of Directors

Certainly 2020 will be a memorable year for all of us.

This annual report highlights what was a very busy and productive time for the Development Corporation of Austin (DCA). The combination of working with Mower County on small business grants and finalizing plans for a new facility with Nu-Tek Biosciences made for a busy, impactful year like none other.

DCA is here to serve the Austin area, and we couldn’t do it without the ongoing, generous support of DCA members and economic development partners.

2019 Highlights

Through a challenging year for many, financial support to DCA remained strong.

Collaboration is a hallmark of effective economic development.

Nu-Tek’s project is a perfect example of partners coming together to support a great project that can be a catalyst for further, diverse economic development here.

This project simply wouldn’t have happened without an “all in” commitment from the City of Austin, Austin Port Authority and Mower County.

Thanks to our great staff and board members for their commitment to DCA’s mission.

2020 Highlights Supporting local business: The COVID-19 pandemic hit local small businesses with waves of challenges. DCA partnered quickly with stakeholders to build community and financial support for those negatively affected businesses.

Fostering entrepreneurs: Co-working space, Launch, served entrepreneurs as well as a meeting spot of entrepreneurial events. Startup Factory model was incorporated into a regional entrepreneurial plan.

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Attracting new business: The DCA led an economic development partnership that created an incentive package for Nu-Tek Biosciences, a company seeking to make a $35 million investment in an Austin facility that is expected to create 35 highwage, bioscience jobs.

Growing local investment: The DCA and Austin Community Growth Ventures (ACGV) launched the Austin Area Angels (AAA) in March of 2020. This network of local investors held four virtual pitch sessions to introduce mostly regional businesses to area investors. Three investments totaling $375,000 were made in 2020.

President’s Report

businesses to build resiliency with online sales, improved websites and more efficient pickup and takeout processes.

Similar to communities across the nation and world, area businesses in 2020 endured waves of slowdowns, stoppages, restrictions and added Meanwhile, DCA and Nu-Tek safety requirements.

Biosciences worked on bringing a Through savvy management, endmajor development project togethless pivots and perseverance, almost er. Tom Yezzi and Kent McCoy of all these businesses survived the Nu-Tek Biosciences; Ben Westra COVID-19 pandemic. Hopefully, and Denita Schreier of JCW; and pent up consumer demand will proJustin Erickson of Community Venvide a strong wind in the sails of ture Network all were immensely businesss through 2021 and beyond. instrumental in bringing the project Certainly 2020 will be a memorato fruition.

John Garry ble year for everyone. While it Erickson, a consultant who President/CEO, DCA might surprise some, 2020 was matches rural communities with among the busiest for the DCA. expanding companies, was central to the project It also was a year in which the DCA had one of from day one. It could not have come together the greatest economic effects on our community in without him. the organization’s more than 30 years of serving Looking ahead, the DCA will increase its focus Austin and Mower County. on food, agriculture and bioscience growth.

To help support businesses affected by the panDCA will advocate for Riverland Community College and The Hormel Institute, University of demic, DCA worked with Mower County and the Minnesota to advance programs, research and City of Austin to distribute federal, state and local public-private collaboration. In bioscience, DCA business relief funds. These efforts included: will support further expansion possibilities with • Mower County COVID-19 Relief Fund – Nu-Tek and actively promote Austin as a place for Working with Mower County, DCA established bioscience development opportunities. eligibility criteria, an application process and Potential abounds for Austin, and continued awarded about $1.25 million in federal CARES Act collaborative action is vital. funds to 150 small businesses affected by the pandemic and related restrictions.

• Impact Austin Together – DCA served as a financial hub for the gift card-buying campaign A huge thank you to DCA Chair Shelley King that led to $125,000 in financial support to 50 for her leadership and guidance the past several small businesses and Austin’s Salvation Army. years. Under her leadership, DCA has strengthened its partnerships, diversified its funding and • Small Business Microgrants – Partnering brought a major economic development catalyst to with Mower County and Impact Austin, DCA Austin with Nu-Tek’s project. made 17 grants of up to $2,500 each to local small

Artist rendering of the future Nu-Tek manufacturing plant planned to open in 2022 in Austin’s Creekside Business Park.

Nu-Tek Numbers $35 million project 60,000 sq. ft.

35 full-time jobs $27/hr. average wage

Thomas Yezzi

Sign at the entrance to Austin’s Creekside Business Park, managed by the Development Corp. of Austin. In the background is the Smyth Cos. printing facility. Nu-Tek Biosciences’ facility will be built just east of the Smyth facility.

Financial Performance

Development Corporation of Austin

—————————————————————— 2020 Assets Liabilities Equity

$

Public Support Revenues Expenses Change in Net Assets

119,000 319,000 (393,000) $ 45,000

2,688,000 (1,198,000) $ 1,490,000

2019 $

2,748,000 (1,304,000) $ 1,444,000

2018 $

2,853,000 (1,397,000) $ 1,456,000

116,000 316,000 (444,000) $ (12,000)

125,000 354,000 (474,000) $ 5,000

$

1,173,000 (6,000) $ 1,167,000

$

1,993,000 (1,176,000) $ 817,000

1,266,000 (1,499,000) $ (233,000)

Austin Community Charitable Fund Assets Liabilities Equity

$

Revenues Expenses Change in Net Assets

730,000 (1,197,000) $ (467,000)

$

701,000 701,000

1,358,000 (1,008,000) $ 350,000

Austin Community Growth Ventures

—————————————————————— $

1,306,000 (892,000) 414,000

Assets Liabilities Equity

$

Revenues Expenses Change in Net Assets

1,083,000 (35,499,000) $ (34,416,000)

$ $

35,796,000 (966,000) 34,830,000

19,955,000 (271,000) $ 19,684,000

$

16,518,000 (1,372,000) $ 15,146,000 13,557,000 (197,000) $ 13,360,000

The Development Corporation of Austin (DCA) is a 501(c)(6) nonprofit organization. Revenue is from DCA members, public entities, lease revenue and grants. The Austin Community Charitable Fund (ACCF), a 501(c)(3) charitable organization, is a supporting organization of DCA. A portion of ACCF funds are restricted to Impact Austin activities and operations. Austin Community Growth Ventures (ACGV), a 501(c)(3), is a nonprofit organization to support ACCF. DCA, ACCF and ACGV are independently audited annually.

Shelley King Chair Partner Baudler, Maus, Forman & King LLC

Geoff Smith Treasurer Principal CliftonLarsonAllen

Vice Chair President IBI Data

Scott Fox Secretary Brand Manager Hormel Foods Corp.

Member President Riverland Community College

Member Owner Fox Electric

DCA Board members

Austin Community Growth Ventures

Geoff Baker, Owner, McFarland Truck Lines Jason Baskin, Austin City Council Patrick Bell, Business Relationship Manager, Wells Fargo Bank George Brophy, Board member (Emeritus) Dave Clasen, Owner, Clasen-Jordan Mortuary Gail Dennison, Dtr., Development/PR, The Hormel Institute Nan Hanegraff, Team Lead/Consumer Banking, Bremer Bank Elaine Hansen, President, Austin Area Chamber of Commerce Chris Holt, President/CEO, Cooperative Response Center Steve Hovey, Nate Jansen, CEO, Quality Pork Processors Kris Johnson, Jim Krueger, President/CEO, Freeborn-Mower Electric Cooperative Taggert Medgaarden, Executive Director, Austin HRA Mark Nibaur, General Manager, Austin Utilities Lance Pogones, Owner, Games People Play Mike Postma, Chad Sayles. Director of Engineering, Hormel Foods Corp.

Mike Tapp, President, Tecstra Systems Carter Wagner, President, The Joseph Company, Inc.

Chair, Craig Johnson, Secretary, Gail Dennison, The Hormel Institute

Austin Community Charitable Fund Chair, Geoff Smith, IBI Data Treasurer, Tanya Medgaarden, CliftonLarsonAllen Vice Chair, John Hernandez, Hormel Foods Corp.

Member, Adenuga Atewologun,

Nathan Annis, Hormel Foods Corp.

Dan Hoffman, Northgate Health Club/New Vision Consulting Aaron Keenan, Sonex Health Care Phil Minerich, Retired, Hormel Foods Corp.

Geoff Smith, IBI Data John Summerfield, Hormel Foods Corp.

DCA Staff John Garry, President/CEO Sean Williams, Launch Juan Molina, SBDC Consultant Wendy Anderson, SBDC Consultant Alice Holst, Administrative Assistant

Developing a strategic plan Although tabled in 2020, the creation of community economic development goals and strategies built on consensus remains a priority. Building on partnerships strengthened in 2020, DCA will host a series of facilitated sessions with the DCA board and members, the City of Austin, Mower County, AURI, Riverland Community College, Austin Housing & Redevelopment Authority, The Hormel Foundation and others to identify common goals, priorities and riskmanagement strategies.

Growing food, ag and bioscience business DCA will continue to advocate on behalf of the Austin area as a food and agriculture center and explore possibilities for further economic growth, including support for educational programs, research and public-private collaboration. In bioscience, DCA will support expansion possibilities with Nu-Tek and actively promote Austin as a place for bioscience-development opportunities.

Development Corporation of Austin (DCA) is an economic development organization serving the Austin, Minnesota, area since 1987.

DCA’s mission is to work closely with public and private sector partners to aggressively market the area to attract new businesses and industries as well as support existing enterprises for the economic benefit of Austin and greater Mower County.