5. EDSR 09-11-2006 - Laserfiche WebLink

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The City of Elk River The City of Elk River has made significant strides since 2002 toward its goal of positioning the community as "The Light Industrial Hub of the Northwest Metro." As noted previously, new industrial development since 2002 has included: ^ 10 new (to Elk River) businesses and two expansions of existing business ^ 377,000 square feet of new construction, with potential future expansion of 72,000 square feet ^ 119 relocated jobs (not including new data centers) and 116.5 new jobs (goal) ^ Almost $44.2 million in additional building value added to the City's tax base The City has been particularly successful in 2005 and 2006. The City attracted six new industrial development projects totaling 293,000 square feet on 55.52 acres in the Noxthstar and Elk River Business Parks in 2005, with another 100,000 square foot-plus, 17-acre project nearing approval. (Please see Exhibit J for a detailed listing of new and expanded businesses since 2002.) Our research indicates that a combination of factors contributed to this success: ^ Overall improvement in the national, regional and local economies since 2004 ^ The inevitable growth of Twin Cities Metro Area development to the Northwest ^ The EDA's 2005 decision to make more land available fox industrial development and to provide expanded fmancial incentives (tax rebate financing) ^ Proactive, responsive, highly regarded Economic Development Division Staff In addition, the City enjoys a number of inherent competitive advantages, including: ^ excellent transportation access, with U.S. Highways 10 and 169, Minnesota Highway 101, and close proximity to I-94, plus freight and - by 2009 -commuter rail service ^ a strong available labor force (Please see Exhibit I{ for a SWOT analysis that summarizes the City's strengths, weaknesses, opportunities and threats with regard to industrial development.) The No.1 obstacle to further development, according to nearly everyone we spoke with is a lack of available industrial land. Several people also mentioned traffic congestion, although the general consensus seems to be that Elk River's highway access is definitely more of an asset than a liability. Two local builders with whom we spoke complained about what they considered to be too-stringent design standards, especially when it comes to outside storage. However, most of the people we spoke with said it is important to maintain those standards to attract larger manufacturers ox corporate users, as well as additional commercial and retail users. A small number of the individuals we spoke with expressed concerns about the responsiveness and reasonableness of some City departments other than Economic Development, as well as the coordination between the various departments involved in the development process. But their comments were largely based on past experiences. Those involved in more recent projects gave City Staff high marks fox responsiveness, and cited an improved level of coordination and integration between City departments. The overall assessment of City Staff was overwhelmingly positive.