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HANDOUT EDSR 01-14-2008
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HANDOUT EDSR 01-14-2008
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-~~~t~c~c~, <br />~;i~c~. <br />y Zoos <br />:us on Wright & Sherburne <br />Minnesota Real Estate Journal <br />c River's resources, location crttrnct massive daha c <br />iness park lands <br />het, UnitedHealth <br />any community development <br />officials work hard to find a <br />an industry where they can <br />~p expertise and a respected rep- <br />d Catherine Mehelich, Elk <br />'s economic development direc- <br />ishes she could say she worked <br />o land two major computer data <br />sin the last two years. <br />th is, they called her. And their <br />lave sparked others. <br />ie development of the two data <br />s has really put us on the map in <br />dustry," she says. <br />elps that the calls came from two <br />familiar -and very large - <br />anies. Target Corp. and United <br />h Group have chosen this Sher- <br />County city to house high-tech, <br />security data centers worth about <br />ullion and $20 million each. Tar- <br />center is complete and United <br />1's is under construction. <br />helich says the workforces of the <br />rs are fairly small, but they earn <br />Nages. The major attraction is in <br />gh value of the centers and the. <br />ment inside.- <br />te value to the county and the city <br />ly in the tax base," she says. <br />initial inquiry from Target was <br />ample of how small-town eco- <br />; development officials have to be <br />~ react quickly, think on their feet <br />PHOTO: DONJACOBSON <br />Target's new data center in Elk River taps an abundant water supply. <br />and be able to work with a broad range <br />of opportunities whenever they present <br />themselves. <br />For example, Elk River has a tradi- <br />tional industrial park and has done a <br />good job of promoting its location, <br />amenities and reasonable land costs. <br />Target took the list of amenities to a <br />new level. <br />"For a large corporate user, one of <br />the most important factors is the relia- <br />bility of the data center," Mehelich <br />says. <br />Data centers require reliable water, <br />electric <br />Target can't have the system shut <br />down as .thousands of people are swip- <br />ing their credit cards at the cash regis- <br />ter or paying bills online. Mehelich <br />says the companies chose Elk River for <br />its ample supply of water for cooling <br />expensive equipment and because of <br />join hi~ech in Elk River <br />g <br />ing various carrier Ethernet solu- <br />;usinesses in Elk River, Cam- tions," says JaredHolm, a manager <br />budge, Otsego and other cities with NorthStar Access. "When. we <br />'Vright and Sherburne counties are , analyzed the Actelis product offer- <br />ung access to a new type of high- ing, we looked closely at spectrum <br />ed telecommunications technolo- frequency. crossover, since we use <br />galled Carrier Ethernet Over Cop- both ADSL and VDSL in the same. <br />which is being deployed by local binders, so frequency crossover was <br />;phone exchange carrier.. North- a major concern "' <br />r Access LLC, based in Big Lake, One deployment includes a retail <br />m. store in North Branch, Minn., which <br />dorthStar Access, a competitive connects to;,a centralroffice located <br />the proximity of its Great River Ener- <br />gy power plant. <br />While Mehelich didn't work to <br />recruit Target, she says she did have to <br />work hard to keep the deal moving for- <br />ward. <br />"Our ability to process their complex <br />proposals quickly was important," she <br />says. "That's a feather in our hat. It <br />really made for a great relationship: ' <br />Sherburne County Administrator <br />Brian Benson says that the challenge <br />for small town officials is to be pre- <br />paredfor anything, but not to sit around <br />and wait for something to happen. <br />Benson says the reasons business <br />choose such locations are so varied <br />they defy easy generalizations. Recent <br />Sherburne County success stories <br />include a pipeline company and two <br />construction companies, as well as the <br />data centers and a medical clinic and <br />retail in Big Lake (see separate story). <br />And while big corporate offices <br />aren't moving to the area yet, some <br />smaller companies in the northwest <br />suburbs are giving the rural areas a new <br />look when they consider expansion. <br />"Some companies have found that a <br />good number of their workers have <br />moved up here," Benson says. "In <br />some cases we have companies follow- <br />ing their workforce: ' <br />Developers are watching the area <br />closely in an effort to anticipate the <br />trends and be ready to make the most <br />of their opportunities. <br />"I think you're going to see contin- <br />ued growth all ong the I-94 corridor," <br />large population," h <br />reason Best Buy dig <br />Bloomington insteac <br />Poppe says indu: <br />seeing land costs ri <br />boom grew, and he 1 <br />awhile for the marke <br />"The national de` <br />around and buy up <br />lars," lie says of tl <br />builders. "As all the <br />ers have pulled out <br />some unrealistic exl <br />their land is worth: ' <br />Poppe stresses tl <br />use today usually do <br />industry but means <br />tion, light assembly <br />that have done w~ <br />Buildings are taller, <br />to stack goods high <br />building's footprint. <br />For example, Popl <br />Colliers are mark <br />Rogers Distribution <br />square foot building <br />foot clear height ce <br />dock doors with a po <br />and the flexibility to <br />more than one tenan <br />"It's all more se: <br />says of industrial prc <br />The interstate h <br />through central and ~ <br />state make .the ar <br />regional distribution <br />as'the Wal-Mart cent <br />the Walgreen's cent <br />Minnesota isn't goi <br />player in truck or <br />portation. <br />"Your main cities <br />are Chicago and Indi <br />"We're kind of at thf <br />Downtown Elk F <br />struggles <br />Sometimes an ides <br />hits a snag. A dow <br />"new urban" center <br />apartments, condo; <br />unveiled with high <br />opened this fall with <br />St. Paul-based M <br />opment LLC develop <br />and its rental units v <br />
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