2008 eda annual report

NORTHFIELD ECONOMIC DEVELOPMENT AUTHORITY

Annual Report

20 08

BOARD MEMBERS

RICK ESTENSON, PRESIDENT

MARTY BENSON, VICE PRESIDENT

SCOTT DAVIS, SECRETARY

JIM POKORNEY

DAVE VAN WYLEN

VICTOR SUMMA

STEVE ENGLER

2008



The Northfield EDA was created by the city council in

September 1990 under Minnesota Statute Chapter 469. The EDA is charged with carrying out economic and industrial development and redevelopment within the city. It is governed by a seven-member board consisting of two council members and five council-approved members. The Board’s broad range of powers is detailed in Minnesota Statute 469.101. With the exception of workforce and training, the Northfield EDA is authorized to conduct all of the traditional activities associated with economic development (see box).

ECONOMIC DEVELOPMENT FUNCTIONS

Economic development organizations are expected to perform some or all of the functions listed below. Checkmarks (√) indicate areas of special emphasis. They are based on the orientation of this plan and are, in varying degrees, essential if action is to be taken.

Marketing and recruitment (targeted industries) √√

Business advocacy

Business expansion and retention (targeted industries) √

Financial incentives

Real estate disposition and improvements √√√

Land and buildings

Bonding authority

Infrastructure improvements

Business start-up support √√

Workforce and professional training

Infill and Redevelopment ................................. 7 Marketing & Public Relations ....................... 10 Business Park Development .......................... 13 Relationship Building ..................................... 17 Business Retention and Expansion ............... 19 Fiber Optics ..................................................... 20 Review of EDA Programs .............................. 21 Transportation ............................................... 22 2009 EDA Budget .......................................... 23

CITY OF NORTHFIELD

ECONOMIC

DEVELOPMENT

AUTHORITY

TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS

801 Washington Street - Northfield MN 55057 Tel 507.645.3018 - Fax 507.645.3055 [email protected]

www.ci.northfield.mn.us

The EDA has made the infill and redevelopment

of existing properties in the City of Northfield

among the organization’s key economic

development initiatives. Pursuing infill

development will aid the City in its efforts to

maximize existing infrastructure and thus

lowering development costs for businesses as

well as maintenance and operating cost to

the City. Infill development is defined as

property that is presently served with

public infrastructure and is zoned for

commercial and/or industrial use.

The program first focused on identifying all infill sites within the City of Northfield using information developed

by the City’s Planning Department for use in its updated Comprehensive Plan. A database was developed that

outlined various attributes of the property. A specification sheet was developed for each site and will be used to

promote the properties to prospects and realtors. The collection of this data has been important in exposing the

inadequate amount of land the City has zoned for industrial development. Northfield has two areas zoned

industrial totaling 42 acres, and of those acres only 30 are unencumbered.

The EDA has also evaluated various redevelopment opportunities within

the City of Northfield. There are several reasons redevelopment

opportunities are not always as evident as infill opportunities. First, it is

important to acknowledge the personal property rights of the individuals

that own the potential sites. Some property owners may not be interested

in selling for personal reasons or due to the tax ramifications. Second, in

most instances, the redevelopment of property is more costly to

undertake than is infill development. Costs associated with the

acquisition of the land and buildings, demolition, and environmental

mitigation are among the top issues that tend to increase the costs

associated with redevelopment. Finally, financial resources to encourage

redevelopment of sites are typically scarce or nonexistent.

In recent months members of the Northfield EDA Infill Committee have

met with representatives of the Northfield Downtown Development

Northfield Economic Development Authority | 2008 7

Infill & Redevelopment Subcommittee

Jim Pokorney Victor Summa Marty Benson EDA Director

Corporation, Northfield Chamber of Commerce, and Northfield Planning Commission to discuss, among other

issues, how infill opportunities can be identified and advanced within the downtown business district. The EDA

and NDDC believe it is critical that the two organizations work in concert as redevelopment opportunities arise.

This effort will continue into 2009 and serves as an example of how the EDA is working with its economic

development partners to advance its infill and redevelopment objectives. The EDA infill committee is using the

City’s 2008 Comprehensive Plan to identify areas that are outside the City’s Central Business District.

INFILL SUCCESSES FOR 2008

In January of 2008, the City and EDA finalized its financial assistance agreements with representatives of Upper

Lakes Foods. The company had committed to relocate 16 positions from their existing facility, and create 15

new jobs to their Northfield facility within 12 months. In less than a year, Upper Lake Foods employs 32 full

time drivers, and 20 full time office and warehouse employees. Currently the Upper Lakes Food facility employs

78 full and part-time employees at its Northfield facility. Upper Lakes Foods is clearly a business that has

exceeded the expectations of the City, and should be touted as an economic development success story.

Infill and Redevelopment


In 2008, the EDA developed a specification sheet for each commercial and industrial property for sale or lease in the City of Northfield. When the EDA’s web site is updated, this information will be able to be downloaded. This initiative is meant to assist potential prospects, realtors, and property owners and site selectors.

Sample specification sheets for the Phoenix Building (available commercial building), the Schilling Business Center Tech-2 Building (available business space), and the Gleason Property (available industrial site).

In July the EDA provided a recommendation and the City Council approved a Master Development Loan to R.

Family Foods, Inc. (Culvers) for the redevelopment of the former Southgate theater property. The loan was

granted at a favorable interest rate This project was particularly important given the limitations of the site, and

the functional obsolesces of the former building.

On June18, 2008, the City received an application from New Division Development Co. LLC for improvements

to the Phoenix Building located at 618 Division Street. The EDA Board reviewed the application and

determined they met all the criteria of the Downtown Revolving

Loan and was consistent with the goals set forth in the Economic

Development Comprehensive Plan. The Board approved a loan

of $75,000 loan, for 15 years, at prime rate.

The Northfield City Administrator requested that the EDA’s

Infill and Redevelopment Subcommittee assist the City in

evaluating the development proposals submitted to the City for

development of the new municipal liquor store. The EDA’s

subcommittee scored each eligible proposal according to the

evaluation matrix in the areas they believed were appropriate for

the infill and redevelopment committee and submitted their

finding to the City Administrator for consideration. The EDA’s

scores were combined with the results of the other evaluations

and presented by the City Administrator to the Northfield City

Council. The City Council is expected to deliberate the proposals

over the next several months before making a decision on how

the City should proceed.

The Northfield Development Company submitted a formal

request for an extension on a revolving loan note which had first

been awarded in 1998 for the acquisition of the Medical Arts

Building in downtown Northfield. The Principals cited the

downturn in the economy and the loss of tenants as their reason

for requesting a five year extension on the remaining balance

of their note. Recognizing the current state of the national and

local economy, the EDA agreed to extend the remaining

balance of their note for an additional five years at its current

interest rate of 5.15%.

Infill and Redevelopment


Upper Lakes Food

Culvers

Phoenix Building

In order to effectively convey Northfield’s business

advantages, it is essential that marketing materials be

developed delineating those attributes that differentiate the

community from others. This applies for both new and existing

business development. It is especially important that the visual

appearance and content convey a professional message which

speaks to the issues important to companies, and does not

conflict with the desired message of Northfield’s elected

officials and economic development partners. Site selectors for

companies continue to emphasize the importance of accessing a

wide array of factual information from a community’s website.

The website has become the primary source of information for

site selectors followed by collateral marketing literature.

Additionally, existing businesses often use the City’s marketing

material to recruit employees and other companies that may

enhance their local operations.

Due in part to the transitioning of new EDA staff, there was limited physical marketing

development that occurred in 2008. Those communities that are serious about attracting or retaining

companies to their community place an emphasis on the effectiveness of their website and collateral marketing

material to market economic development opportunities. This initiative will gain greater prominence in 2009.

The EDA’s Marketing subcommittee met with Mike Bollinger of Minneapolis Web Design to discuss potential

changes to the EDA’s web site. Mr. Bollinger was involved with the development of the City’s current web site.

The EDA is currently pursuing improvements to the EDA’s website that will allow for the access of information

on economic development sites, community information, and economic development programs.

ECONOMIC DEVELOPMENT PROSPECTS

The Community Venture Network (CVN) was formed in 1991 to connect ED

professionals in rural communities with expanding business opportunity. Emerging

growth businesses find that the reduced operating costs, lower labor rates, attractive

financing programs and unified community support found in rural communities provide

an ideal situation for successful business growth. The CVN provides a forum where

emerging businesses can introduce their companies to economic development representatives interested in

attracting new companies to their community.


Marketing & Public Relations Subcommittee

Victor Summa EDA Director

Community Venture Network (CVN) assists communities and businesses recognize the mutual advantages of

sharing information. CVN conducts active outreach programs to identify emerging businesses and educate them

on the benefits of seeking business locations outside the metropolitan communities. At the same time CVN

maintains a network of communities from across the Midwest with the resources beneficial to growing

businesses. Every other month alternately in Minneapolis and Chicago, CVN presents eight companies to a

network of economic development directors, investors, and bankers from throughout Minnesota, North Dakota,

South Dakota, Iowa, Wisconsin, Michigan, Indiana, Illinois, and Kansas. Each presenter works with Erickson &

McKenzie to craft a community expansion opportunity that will be presented in a summary write-up for each

attendee as well as a 25 minute presentation. There is no cost to the companies that present.

Representatives of the Northfield EDA and Rice County Development attended CVN forums in Minneapolis in

April, August, and December. The forums have resulted in a number of prospect visits by companies evaluating

Northfield as a potential site for their company. The EDA is currently working with three prospects that were

introduced to economic development representatives as part of the CVN forums.

OTHER PROSPECT INQUIRIES

From August to December 2008, the EDA has provided information requested by business prospects interested

in either expanding or relocating their company. The EDA responded to other inquiries prior to August, but

those prospects are not addressed within this document. A brief profile of those inquiries is listed below and are

a demonstration of the types of businesses that are evaluating the community assets of Northfield.

Marketing and Public Relations


Prospect 1 Prospect 2 Prospect 3

Initial contact:

Minnesota Department of Employment and

Economic Development Rice County Economic

Development

Metropolitan realtor

Metropolitan realtor

Type of company: Manufacturing Distribution Manufacturing

Land requirements: 40 acres 20 to 35 acres 20 to 30 acres

Building requirements: 250,000 sq.’ new

construction 50,000 sq.’

30,000 sq.’ new or existing

Zoned: Industrial Industrial Industrial

Rail access: Desirable N/A Desirable

Number of new jobs: 300 (welders, unskilled,

production, etc.) 15 full time workers

Status: Inactive (company is no

longer considering sites in Minnesota)

Active-the EDA provided information that most

closely represented the prospect’s request

Active

It is important to note, four of the six companies were seeking parcels of land 20 acres or more. Northfield’s

current land inventory is comprised 30 acres of developable industrial land located in two separate areas of the

City. This situation provides a compelling reason for the City to continue its efforts to annex land for future

business development.

Marketing and Public Relations


Prospect 4 Prospect 5 Prospect 6

Initial contact: Metropolitan realtor EDA Metropolitan realtor

Type of company: Industrial dealership Plastics Office

Land requirements: N/A 20 to 30 acres N/A

Building requirements: 20,000 to 30,000 sq.’ 30,000 sq.’ 8,000 sq.’

Zoned: Industrial Industrial Office

Rail access: N/A N/A N/A

Number of new jobs: 75 to 150

Status:





Inactive-prospect moved forward on another

location

…...Continued

In 2008 the EDA has been the lead organization exploring

the various alternatives for the development of a third

Business and Industrial Park for the City of Northfield. In

recent years there has been considerable discussion with the

residents of Northfield as to whether the City and EDA are

considering a balanced approach to community

development. Balanced growth is defined as having an

adequate amount of commercial and industrial zoned

property to support the residentially zoned property in a City.

The EDA staff has spoken to a number of planning

professionals to determine the proper mix of residential,

commercial, and industrial zoned property. It is the general

consensus of those in the planning profession that there is no

accepted methodology for drawing a correlation between

industrial zoned property and population. Communities must

decide for themselves how they would like to develop,

whether it be as an urban job center, or a bedroom

community. A bedroom community will not be concerned

with industrial growth, but instead will plan its commercial

growth in a manner that will support its residential

development. In contrast, those communities that are actively

seeking to expand their industrial development must also

consider such things as the availability of land, ability to

provide infrastructure, and the relationship the development

has with surrounding land uses. However, studying the

correlation of industrial development is still a worthwhile

exercise to undertake and something the EDA and City staff

needs to address as the City considers the annexation of

property in the NW and SW regions of the City.

Over the years the City has integrated Smart Growth

Strategies within their existing and future planning efforts. “Smart growth” means different things to different

people. There is no single definition of smart growth; its meaning depends on context, perspective and

timeframe. Smart growth does not mean no growth; rather, it does seek to maximize existing infrastructure and

maintain the vitality of the central core districts of a city. Infill and redevelopment are important components of


City of Northfield 1.0

Year Population Acres People Per Acre

1860 867 320.00 0.37

1870 2,227 N/A

1880 2,293 N/A

1890 2,648 N/A

1900 3,210 N/A

1910 3,265 N/A

1920 4,023 N/A

1930 4,123 N/A

1940 4,533 N/A

1950 7,471 N/A

1960 8,707 N/A

1970 10,235 N/A

1980 12,549 N/A

1990 14,684 4,019.17 0.27

2000 17,147 4,473.60 0.26

2007 * 19,331 4,921.89 0.25

2010 ** 20,284

2020 ** 23,616

* Population projection U.S. Census Bureau

** Population projection City of Northfield

Business Park Development Subcommittee

Rick Estenson Steve Engler Scott Davis EDA Director Dave Van Wylen Brian O’Connell

a Smart Growth development policy. Northfield’s 2008

Comprehensive plan identifies those areas in the City were

potential redevelopment opportunities exist. These areas are

more suitable for commercial and residential development

and thus would not be considered for industrial

development. Utilitizing the 2008 Northfield

Comprehensive Plan, the EDA has also identified infill

opportunities. The EDA believes that infill and

redevelopment help to intensify development and limit

expansion into open green space.

Based upon information that has been collected by the

Northfield’s city staff, the total acres of land within the City’

corporate limits have changed considerably since

Northfield’s founding (Table 1.0). While information about

the City’s total acreage is nearly nonexistent from

Northfield’s early history, the person per acre ratio has

decreased in recent years.

The issue of annexation for the expressed purpose of

providing additional development property was most

recently addressed in the EDA’s 2006 Comprehensive

Economic Development Plan. The Plan cites the

development of a new business park that will serve the

following functions: (1) provide adequate options to attract

new and expanding companies; (2) provide a location for

prospects requiring larger tracts of land; (3) create locations

for expansion of existing companies; and (4) create an

opportunity for the City to better control its land use

planning for certain business types (i.e. Light Industrial,

Office Commercial, Research). Successful efforts to attract

new or expanding businesses will broaden the tax base and

reduce the overall tax burden for existing commercial,

industrial, and residential properties. Additionally, new job

creation will provide an opportunity to employ local

residents that shop in local retail and service establishments

(the local multiplier effect).

Early in 2008 the EDA enlisted the services of Frank C.

Dunbar, President Dunbar Development Corporation to

develop two separate scenarios for the future development

of a third Northfield business and industrial park. Included

in their evaluation was the staging and costs associated with

Business Park Development


What Is A Shovel Ready Site Having an economic development site deemed to be a "Shovel Ready Site" means that the local developer or municipality has worked proactively to address all major permitting issues, prior to any business expressing interest in the location. This advance work creates a site where construction can begin rapidly, once a prospective business decides to advance to the construction phase of development. By reducing the time it takes a company to begin construction of a new facility, local partners are able to provide valuable savings to the business and job opportunities for local residents. The site is annexed into the City of

Northfield.

Comprehensive Plan guides the property for the intended use.

Phase I and Phase II environmental analysis is complete.

Master Plan for the Development of the property is approved by the City.

EAW, AUAR or EIS is complete and approved the Minnesota Environmental Quality Board.

Preliminary Plat is approved by the City Council.

Zoning is in place or endorsed by the Council.

Trunk infrastructure, if applicable, is designed and construction plans have been prepared and cost estimates have been identified.

Financing for trunk infrastructure if applicable has been identified and endorsed by City Council.

Formula (criteria) used to determine tax

the preparation of potential site(s). The EDA and their consultants worked jointly with City’s elected officials

and staff to determine which site(s) should be considered for annexation.

On Thursday, August 21, 2008, the EDA sponsored a land development informational meeting at St. Olaf

College. The EDA’s consultants gave a presentation explaining a number of issues as it relates to the

development of a business and industrial park. The meeting was attended by property owners, EDA board

members, elected officials, planning and zoning officials, City staff, and other interested parties. The EDA and

City staff believe that engaging the public in the discussion of annexation and business park development will

create a better understanding of issues that are important for the sustainability of Northfield.

Much of the presentation evolved around what is required for a development site to be considered “Shovel

Ready”. Dunbar Development believes that if the City of Northfield intends to advance its economic

development efforts, it must have “shovel ready” development sites available to economic development

prospects. The term “shovel ready” has a specific meaning that is understood nationally by developers, site

selectors, realtors, and state and county governments.

In September a meeting was held at City Hall with representatives of the EDA, City staff, Mr. Robert Gill, Mr.

Kenneth Prawer, and engineers representing the owners to discuss their interest in annexing property into the

City of Northfield. The property owners were aware of the City’s interest in identifying new business and

industrial development property and believed both parties had a stake in the preparation of a concept plan.

Properties seeking to be annexed into the City of Northfield are required to develop a concept plan in order to be

considered for annexation by the Planning Commission and the City Council.



City of Northfield, Municipal Code Sec. 34-129. Request for annexation and informal review.

Any developer wishing to have the city annex property shall submit a written request for such annexation to the community development department. The written request for annexation shall include the following information:

(4) A conceptual development plan which shall include the following:

a. A scaled drawing of the property proposed for annexation at a scale not less than one inch equals 100 feet, including topographic data at not less than two-foot intervals and the existing conditions, whether natural or manmade, on the property.

b. A layout of the proposed development of the property at a minimum scale of one inch equals 100 feet, including streets and rights-of-way; public and private parks and open spaces; existing natural features and those features proposed for preservation; general land use designations; acreage and densities; and a preliminary statement of market focus. The proposed conceptual development plan shall also include the relationship of proposed land uses, transportation systems and natural features to the land uses, transportation systems and natural features of adjacent platted and unplatted lands within one-fourth mile of the property proposed to be annexed.



Engineers representing the property owners estimated the cost of preparing the concept plan at about $12,000.

The property owners requested financial assistance from the EDA for the preparation of the concept planning,

and the EDA Board approved participating in the financing of the concept plan in an amount not to exceed

$4,000. EDA representatives and Northfield City staff have attended a number of meetings with and

representatives of the Prawer and Gill properties in an effort to assist the property owners prepare a concept plan

that can be submitted to the Planning Commission and City Council for formal consideration.

ANNEXATION UPDATE

The EDA’s 2009 budget includes funding to

participate in the next stage of planning for the

areas identified for a third industrial and

business park. Those stages may include an

environmental evaluation, master planning, and

preliminary infrastructure design.

In November of 2008, the Northfield’s city

staff met again with Greenvale Township

supervisors in an effort to reach an agreement

to annex 530 acres of land NW of the city’s

current corporate limits. At the conclusion of

the meeting the two parties had come to a

tentative agreement which would allow the

City of Northfield to annex the property. The

annexation of the property should be approved

by the Minnesota Boundary Adjustment Board

prior to the spring of 2009. Discussions with

Supervisors of Bridgewater Township

regarding the SW annexation properties are

expected to begin in January of 2009.

In 2008, the Northfield Economic Development Authority made significant strides toward utilization of its

economic development partners. A brief narrative has been provided to outlining the EDA’s relationship

building initiative.

Northfield Chamber of Commerce: The

EDA co-sponsored a marketing series with Northfield Chamber of Commerce which was designed to provide continuing education for local businesses. Additionally, Northfield’s Chamber Director, Kathy Feldbrugge also arranged a meeting with Kevin Kelleher, Southeast Minnesota Business Development Representative for the Department of Employment and Economic Development (DEED). The intent of the meeting was to introduce Mr. Kelleher to the new EDA Director and discuss issues that are important to the City of Northfield. The EDA President and Director attended the Chamber’s strategic planning meeting on November 19, 2008. The Chamber Board expressed their desire to enhance its working relationship with the EDA and collaborate on issues that are important to the economic growth of Northfield.

Xcel Energy: The EDA Director, City Administrator, and Community Development Director met with Glen

Kuhl and Ken Stabler, representative of Xcel Energy, to discuss the City’s plans for annexation and other economic development issues important to the City. The Xcel Energy representatives believe Northfield need’s to develop areas that are “shovel ready.” They were also very supportive of the City’s efforts to position itself for future economic opportunity, and expressed their company’s willingness to financially participate in the EDA’s economic development marketing initiatives.

Rice County Development Corporation: The EDA Director met on a number of occasions with Rice County’s

Economic Development Director, Deanna Kuennen, and discussed various issues affecting Northfield and prospects that have expressed an interest in the community.

Rice County Officials: In November the EDA Director and Northfield City staff met with Rice County

Supervisor Galen Malecha, Rice County Administrator Gary Weiers, and Rice County’s Economic Development Director, Deanna Kuennen to discuss each entity’s priorities. Those attending the meeting pledged to schedule regular meetings throughout the next year to encourage open communication and mutual cooperation.

Northfield Enterprise Center: Throughout the year the NEC has reviewed and provided a recommendation to

the EDA on loan applications submitted by businesses seeking to obtain financial assistance. The NEC Director, Blake Abdella has also attended the Community Venture Network as a representative of the Northfield EDA.


Relationship Building & Communication

Subcommittee

Jim Pokorney EDA Director

Northfield Downtown Development Corporation: Representatives of the EDA have attended the NDDC Blockhead meetings throughout the year. These meetings have provided an opportunity for the EDA to better understand the iniatives of the NDDC. The Blockhead meetings have also afforded a networking opportunity for the EDA Director and Board members. The EDA Infill Subcommittee has also participated in the strategic planning initiative of the NDDC.

Regional Cooperation: In October of 2008, the Northfield EDA was approached with a unique opportunity to

convey its support for a project that would benefit both the School District and neighboring township. At the October 9, 2008, EDA board meeting representatives of the Prairie Creek Charter School presented their expansion project to board members. The school has experienced tremendous growth and is currently constrained by the size of the building and thus is sought out conduit financing for their expansion project. Caroline Jones, Director of Prairie Creek Charter School, noted they have grown from 54 students to over 120, and currently have a waiting list of 60-100 students. Of the 120 students approximately 85 of them are from Northfield. She presented a site plan of the proposed plans and stated that they had recently received a federal grant of $500,000 to remodel parts of the building. The final project is estimated to be about $2.2 million. The School had originally planned to have Eureka Township issue the bonds, but later was informed that the township did not qualify for this type of debt financing. The City Council held a public hearing on November 3, 2008, allowing the EDA to serve as the lead agency issuing the conduit financing and the EDA approved the issuance of the debt at its November 20, 2008 Board meeting.

CURRENT PARTNERSHIP STATUS

Drawing upon the insights gained from their annual strategic planning session on December 11, 2008, the EDA

has begun to clarify expectations for its economic development partners for 2009. The EDA Board has

determined that the upcoming year will provide a challenging economic climate for business and local

governments, and thus the EDA is must strive to maximize the use of its limited financial resources.

At its December 18, 2008 regular board meeting, the EDA Board approved funding for the Northfield Enterprise

Center and Northfield Downtown Development Corporation. Although the Chamber of Commerce does not

receive annual funding, the EDA has financially sponsored Chamber initiatives. All the development partners

the NDDC, the NEC and the Northfield Chamber of Commerce are essential components to helping the EDA

achieve its mission. In the past the EDA has supported the endeavors of these organizations in order to improve

relations with area businesses, create jobs, promote the community, and generally enhance the economic vitality

of Northfield.

The EDA stated their desire to strengthen its relationship with its economic development partners in 2009 while

at the same time seek out even greater collaboration between the Chamber, NDDC, and NEC in an effort to

present a united front on issues important to the City of Northfield. While each of the partner organizations has a

distinctive role and mission, the EDA will encourage them to define ways that they may complement each other

and assist the EDA accomplish its economic development initiatives.

Relationship Building and Communication


A healthy and vibrant local economy depends largely on the well-

being of a community’s existing firms. The growth and survival of

those firms can be viewed as a measure of the community’s

economic environment and the local support provided by its

economic development partners. In fact, it is much easier and cost

effective to retain a business than it is to recruit a new company.

National statistics indicate 60-80% of job creation occurs within

the existing business sector. When businesses stay and expand in a

community it speaks well of the political and economic

environment, and will assist the City in its recruitment of new

companies.

The Northfield Economic Development Authority recognizes the importance of knowing the financial conditions

of its existing businesses. In order to better represent the businesses that reside within the City of Northfield, the

EDA has developed a Business Retention and Expansion (BR&E) program. The BR & E program has number of

objectives including:

Evaluate the current economic condition of the company

Identify issues that may assist the company expand their markets

Discuss issues and potential solutions for impediments a company may have that would prevent them

from expanding their local operations

Inquire about their perception of the City

Current workforce needs

Identify opportunities to attract

companies which would enhance local

business operations

It is important to note that firms which are

considering moving to a community not only

read local newspapers, but often speak to existing

firms about the support they’ve received from the

community. The EDA strives to be a resource

for local companies and a conduit to their

business solutions.


Business Retention & Expansion

Subcommittee

Rick Estenson EDA Director Northfield Chamber NDDC

In the fall of 2007, the Blandin Foundation granted the City of Northfield $25,000 in a one-to-one matching

grant to use towards an Open Network Feasibility Study. In September of 2008, the Northfield City Council

awarded a contract to CCG Consulting, LLC in the amount of $54,500 for the completion of a Fiber to the

Premise (FTTP) Feasibility Study.

This study is the next step in identifying and developing the service delivery

models and associated financial information for improving the fiber optic

capabilities and infrastructure available to Northfield businesses and

residents. The City of Northfield Economic Development Authority (EDA)

identified improving the availability of fiber optics infrastructure within the

community as a priority initiative within its economic development plan, and

committed $10,000 toward the cost of hiring a consultant and conducting the

feasibility study.

The fiber optic feasibility will include:

Survey of residences and businesses to establish a likely market for a city-wide fiber optic network.

Create relevant business cases for various network designs and financing options for the following business

models:

√ Open network (city owned, various providers)

√ Single service provider (city owned, one partner/provider)

√ City ownership and operation

√ Other

Evaluate relevant community uses of the network

√ Government, Education, Health Care, Business, Home

Research and analyze current communications services and rates in area.

Pre-engineering to sufficient depth to estimate costs and approximate implementation timeframes for full

fiber to the premise (FTTP).

Probable project implementation schedule.

Public open house.

The EDA’s 2008 work plan includes supporting the City of Northfield’s efforts to examine the feasibility of

providing fiber optic network services to its businesses and residents. On November 6, 2008, the City’s fiber

optic consultant (Doug Dawson) met with representatives of the Chamber of Commerce, NEC, EDA, and City

staff and requested assistance with identifying the contacts with the companies in Northfield.


Fiber Optics Subcommittee

Dave Van Wylen Scott Davis EDA Director

The Northfield City Council has designated the EDA as the agency

responsible for managing and promoting economic development

activity for Northfield through the enactment of the Economic Development Authority. The Board is required by

state statute to prepare a budget for City Council review and approval. As a part of the budgeting process, the

EDA board examines economic development programming initiatives, financial assistance programs, and makes

adjustments if warranted.

The EDA approved and processed a number of loan and grant applications in 2008. Funding is provided to those

individuals or companies that meet the criteria of the Downtown Revolving Loan Funds and the Micro Grant

program, and provides recommendations to the City

Council for Master Plan District funding requests. A

score card was developed outlining all EDA loan and

grant activities, the condition of those loans and

grants, and when the monitoring of those businesses

will expire.

Given the current economic conditions, the EDA has

determined that it should evaluate the existing

programs to determine where they are meeting the

goals and objectives of the EDA and City Council.

The evaluation of the EDA’s programs began in late

2008, and a recommendation of potential changes shall

be provided to the full EDA Board by the spring of

2009.

At the December 15, 2008 Northfield City Council

meeting, the City Council members approved a

resolution adding clarity to whom may serve as a

member of the EDA Board. The City Council’s

resolution was consistent with the resolution the EDA

passed on October 23, 2008. The amended resolution

states that individuals which are not residents of the

City of Northfield, but are employed or own property

in the City are eligible to serve as a member of the

EDA board. Additionally, for the first time since the

inception of the EDA, the Northfield City Council has acknowledged and stated their support of the EDA’s

bylaws. The EDA Board has expressed a desire to work much closer with the Northfield City Council, and

intends to submit future amendments to the EDA bylaws for City Council consideration. In 2009 the EDA will

re-codify their bylaws, operating procedures, and their member handbook.


Subcommittee

Rick Estenson Scott Davis Marty Benson EDA Director

Programs, Processes, and Projects

The interface between transportation investment and economic development has broad ramifications that go

beyond transportation’s basic purpose of moving goods and people from one place to another. Transportation

has a broader role in shaping development and the environment. Policy concerns over the next several decades

will increasingly focus on the effects of transportation on where people live and on where businesses locate.

Additional evaluation will occur on the effects that these location decisions have on land use patterns, congestion

of urban transportation systems, use of natural resources, air and water quality, and the overall quality of life. To

make prudent decisions, the EDA and its development partners must be equipped with the best information and

analysis possible about the interactions among these various factors.

In 2008, representatives of the EDA remained an active participant in planning for transportation improvements

that are important to advancing the City’s transportation network. Members of the EDA participated in the

public forums leading up to the City Council’s approval of Northwest Northfield Highway Corridor Study

prepared by CH2MHILL under the direction of Dakota County. EDA members were also active participants

during the development of the City’s 2008 Comprehensive Transportation Plan update.


Study Area This study examined the need for transportation

improvements shown in the Northwest Northfield Study

Area, located in Dakota and Rice Counties and focused

on Dakota County State Aid Highway (CSAH) 23 and

Rice County’s CSAH 43 alignments (see Figure1). The

study area extends from Dakota County Road 96 on the

north to Rice County Road 59 on the south; and Garrett

Avenue to the west to County State Aid Highway

(CSAH) 23/43) to the east. Based on input received

during the first Public Open House, held on January 31,

2008, a northern study area was added. This area extends

approximately ½ north of CR 86 in Eureka Township, as

shown in Figure 1.

Source: Technical Memorandum CH2M Hill July 15,2008

Subcommittee

Victor Summa Public Service - ENG EDA Director

Transportation


2009 OPERATING BUDGET

Northfield Economic Development Authority Board Members

• Rick Estenson • Marty Benson • Dave Van Wylen • Victor Summa • Steve Engler

• Jim Pokorney, City Council Representative • Rhonda Pownell, City Council Representative

Approved Budget: $444, 784.00

PROGRAM AREA

The Northfield Economic Development Authority (EDA) was created in 1990 with the expressed intent of improving the economic conditions of Northfield’s business and residents. Its primary mission is to recruit, expand, and retain businesses that are appropriate for the community. The EDA is involved in those issues that will advance employment opportunities and expand the City’s tax base.

The commission consists of seven members, appointed by the Mayor and approved by the Northfield City Council. Each member serves a six-year term. There are no term limits. Members do not receive monetary compensation.

2009 SUMMARY BUDGET

Estimated Revenue Estimated Expenditures

Tax Levy $238,500.00 Personnel $ 65,498.00

Interest Earnings $ 22,700.00 Supplies $ 780.00

Application Fees $ 450.00 Other Services $ 23,780.00

Undesignated Reserve

Fund Transfer $183,134.00

Other Charges

• Dues, memberships $ 4,500.00

• Business Park $107,813.00

• Infill/Redevelopment, Marketing & Public Relations

$107,813.00

• Relationship, Communications NEC, NDDC, Chamber, SMIF $104,600.00

• Micro Grant $ 30,000.00

Total $444, 784.00 Total $444, 784.00


Jody T. Gunderson, Director Northfield City Hall 801 Washington Street Northfield, MN 55057-2598 Direct .................. 507.645.3018 Mobile ................ 612.968.6407 Fax ...................... 507-645.3055 Email .................. [email protected]

CITY OF NORTHFIELD

ECONOMIC

DEVELOPMENT

AUTHORITY

ANNUAL REPORT

2008 eda annual report

Documents

infill development

northfield eda

industrial development

development costs

business park development

city council

business retention

eda budget