5. EDSR 09-11-2006 - Laserfiche WebLink

Home Browse Search

Target Markets: Primary -Manufacturers Since 2000, Elk River's primary target market fox industrial development has been the businesses that actually use the facilities, chiefly small to medium-sized light industrial manufacturers. The City has found quite a bit of success in attracting and retaining the small to medium-sized light manufacturers, especially during the past four years. Since 2002, the City has attracted 10 new (to Elk River) businesses and assisted with two expansions of existing businesses, resulting in new construction totaling 377,000 square feet. Those projects have generated 119 relocated jobs (not including the fast data center project) and include a goal of creating 116.5 new jobs, and have added almost $44.2 million in building value to the City's tax base (Please see Exhibit H fox a detailed listing of new and expanded businesses since 2002.) Now, many of those we interviewed believe that Elk River should build on that success but aim higher by targeting medium to large light industrial users. A smaller number of interviewees said the City should concentrate more of its economic development efforts on retaining and growing existing businesses, and/ox on attracting complementary firms -companies that would supply or buy products and services from existing businesses. Some believe that the City should do all of the above; pointing out that these various goals axe not mutually exclusive. In light of recent developments in Otsego, Ramsey, Rogers and other communities along Interstate 94 and/ox Minnesota Highway 101, some EDA Marketing Committee members suggested that Elk River should try to attract more commercial and retail businesses. However, other than the almost universal desire fox "a fine-dining restaurant," none of the interviewees suggested that. And, even if that was a goal, local experts say, it would be difficult to achieve. The brokers and developers we spoke with say commercial/retail development "follows the rooftops" -assuming that cities continue to provide an attractive environment fox development. They acknowledge that some major retailers -including Home Depot and Wal-Mart -have come to Elk River, and more will inevitably come as the City continues to grow. So the City should continue to guide land for commercial and retail use. But most agree that such developments are a naturally occurring process that cannot be forced by a city's marketing efforts. Also, because other communities closer to I-94 and the metro core have akeady absorbed much of the existing market demand fox commercial and retail development, they say it could be some time before the market grows enough to justify further commercial and retail development. With Great River Energy's decision to relocate its corporate headquarters fresh on their minds, the people with whom we spoke agreed that attracting a large corporate campus would be challenging. Competition is intense. Those decisions also tend to be driven by the location preferences of top management, who tend to prefer sites closer to the metro core and airport, and with more upscale housing options. Although Elk River has some upscale housing, it is not widely perceived that way. (Please see Appendix A fox a summary of our interviews with past, present and potential clients.) (Please see Appendices C and D fox the EDA Marketing Committee meeting minutes.)