HomeMy WebLinkAbout1999.07.13 PACKET Secretary
•
CITY OF COTTAGE GROVE
ECONOMIC
DEVELOPMENT
AUTHORITY
AGENDA
TUESDAY, JULY 13, 1999
7:30 A.M.
S 1. Call to Order
2. Roll Call
3. Approval of June 8, 1999 Minutes
4. Business Items
A. Project Updates
B. Recommendation for New EDA Member
C. Proposed 2000 EDA & Economic Development Fund Budgets
D. EDA Annual Report and Introduction Letter
E. Genesis Business Center Site Visit
F. Other Site Visits: North Star Plastics and Cogentrix
G. Annual Golf Outing
H. Marketing/Advertising Update
5. Miscellaneous Business Items
6. Adjourn
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• City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator J,APt--c)
Date: 07/09/99
Re: Project Updates Item 4A
METRO EAST
We have been very active with Metro East this past month. On June 29, there was a
• site visit with a company at the Industrial Park. Staff responded to a proposal on July 2,
and is preparing another response due July 16. Staff will update the EDA about these
three projects at the July 13 meeting.
HOTEL/RESTAURANT/OFFICE
As per your direction at the previous meeting, City Administrator Schroeder forwarded a
letter to the School District. (See attached copy.)
FACTORY OUTLET CENTER
I sent a letter to the consultant with information about the city, inviting him to visit
anytime he is in the Twin Cities area.
POST OFFICE
They continue to work on the site plan. City staff has not seen revisions since making
comments on a previous draft. The USPS is currently negotiating for additional land.
GROVE PLAZA
Staff met with KKE Architects and attorney Peter Coyle on July 7. We can provide an
IPupdate at the meeting.
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RENEWAL BY ANDERSEN
I am working with representatives from Renewal on the next DTED progress report. An
additional 53jobs have been created since the last report in January. This represents a
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P rY P
total of 92 jobs created to date.
OFFICE/WAREHOUSE PROJECT
Staff is aware of some various needs for office space, along with some inquiries in this
area. For example, along with general inquiries about office space availability, we are
aware that Renewal is going to need additional office space. Further, if we proceed with
a Genesis Business Center-type project, it would require office space. Therefore, we
have been researching various options. Last week, City Administrator Schroeder met
with a builder who is potentially interested in building an office facility near the industrial
park. We can provide more information at the meeting.
MISCELLANEOUS
• Responded to an inquiry from a bank regarding small business loan program
• Responded to an inquiry about the Enterprise Fund.
• Responded to an inquiry from a broker regarding information regarding existing
buildings and lots for sale.
• Assisting local office owner with space coming available by entering the information •
on our database, so we can provide a referral if any inquiries come in.
• Responded to a request for information regarding city water/sewer requirements, for
a company "considering" a move to Cottage Grove.
• Attended a meeting with the Planning Department regarding possible development
near Menard's.
• Planning continues to receive inquiries on the property between Champion Auto
and Amoco.
We are evidently one of four communities being looked at for a business expansion
project that I do not have much information about at this time. Key decision-makers
were out of the office until mid-June. I have been trying to obtain an update on this
possible project.
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\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA MemosUuly 99 Proj Update.doc
June 17, 1999
Superintendent Dan Hoke
South Washington County Schools
District Service Center
7362 East Point Douglas Road South
Cottage Grove, MN 55016-3025
Dear Dan,
As you know, the Cottage Grove Economic Development Authority has been working
with a hotel/restaurant developer in an effort to bring an improved level of service to
the community. After a review of available sites, and after becoming aware that the
School District appeared interested in entertaining offers on the remnant parcel on
East Point Douglas Road, we requested the developer to approach the District on
your site.
I understand that the developer has made an offer on the site. I further understand
that this offer may be short of the appraised value on the site.
At their meeting of June 8, 1999 the Economic Development Authority directed that I
forward a letter informing you and the Board of the EDA interest in this project. While
the EDA has not delved significantly into project details at this point, the project
concept is one that they support and one that they believe could be an asset to this
community. Therefore, the EDA respectfully requests that the Board take the
opportunity to review the project further to determine if the School District could
accomplish its goals and at the same time facilitate development of this project or
some variation thereof.
This project is still young in its stage of development. However, if it continues to be
pursued on the District site, I would make every effort to work towards a positive
development for your adjacent uses.
Thank you for your assistance with this matter.
Sincerely,
• Ryan R. Schroeder
City Administrator
•
City of Cottage Grove
0
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator044)
Date: 07/08/99
Re: Recommendation for a New EDA Member Item 4B
At the June EDA meeting, we discussed the need to replace Donna Boehm, who
resigned in May. I contacted both of the individuals suggested at the meeting. Both are
interested in the EDA and would like to participate, but for different reasons, do not feel
they can at this time.
• I did receive one other suggestion from a City Council member. The suggestion was to
contact Shannon Green of Renewal to see if she is interested. I spoke with Shannon,
and she is interested.
I did not receive any additional suggestions.
ACTION REQUIRED
Prepare a recommendation to City Council for a new EDA member. This item can be
placed on the July 21 regular meeting agenda.
Ill
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City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator ptAtt
)
Date: 07/08/99
Re: Proposed 2000 EDA and EDF Budgets Item 4C
Attached is a copy of the proposed budgets, which were recently submitted to the
Finance Department. The budget team will review department budgets during the week
of July 12, with the EDA/EDF budgets scheduled for July 16. In general you will see
• changes because of the staffing changes that were made this year. Otherwise, there
are not many significant changes from previous years.
EDA
The Mission remains the same as in previous years. It is taken from the EDA's
Strategic Plan. The Description of Activity also remains the same. The Major
Objectives for 2000 has been updated. Some are similar to previous years, then we
added a few new ones and re-worded a few. We used the Strategic Plan and Work
Plan as a guide for developing year 2000 objectives. At this time we are still working on
putting together the data regarding the impact measures.
In terms of the financial aspect of the EDA budget, the following are highlights:
• The Engineering Services line item was increased by $1000 to reflect what has
actually been spent the past two years.
• The advertising line item was increased to reflect a possible 5% increase in rates for
Minnesota Real Estate Journal ads (as quoted to me), or to allow for possible
changes in our advertising plan.
• The overall budget is proposed to increase 2.9%.
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\\CG_FS1\SYS\GROUPS\PER_ECON\MAw\EDA Memos\July 99 Budget.doc
ECONOMIC DEVELOPMENT FUND (EDF)
•
The Mission and Description of Activity are the same as in previous years. As with the
EDA budget, the Major Objectives was revised. And, as previously mentioned, we are
still gathering the data related to the impact measures.
The biggest change is in the Personnel Schedule. Previously, 1 Full-time Director and
.5 Secretary were shown in this budget, for a total of 1.5 full-time equivalents. However,
based on actual time spent in previous years, the Secretary spent approximately 25% or
less of his time on Economic Development activities. Further what we are showing for
2000 is a guess. We still anticipate time spent by the Secretary, and we may have
slightly underestimated the time spent by the City Administrator and myself. This does
not dictate what time will be spent; rather, it is an estimate used for splitting personnel
costs. The bottom line is that the necessary time will be spent to meet the objectives
and get the job done. Because of the changes in staffing, we are projecting some
savings in personnel-related costs.
Other highlights of the EDF budget include:
• A decrease in Office Supplies and Operating Supplies. This is based on what has
actually been spent the past few years.
• Postage is increased, to reflect the cost of mailing the Annual Report to a much
larger audience.
• Printing is increased to reflect the Annual Report and the possible need to print more •
copies of the "Growth Partners" brochure, or to print a new marketing brochure.
• Advertising is increased to reflect a potential 5% increase in rates.
• Travel and Training is reduced, based on an assessment of the training needs.
• Special Events has been increased to reflect the actual past history expense of the
golf tournament.
• Overall, this budget is projected to decrease 29.95%, primarily because of the
change in staffing.
ACTION REQUIRED
Provide direction, thoughts and changes, so that they can be reflected as we review the
proposed budgets in the coming weeks.
•
\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA Memos\July 99 Budget.doc
• FUNCTION DEPARTMENT DIV NO ACTIVITY
General Gov't Economic 12 EDF
Development Economic
Development
MISSION
Facilitate economic growth in Cottage Grove by implementing business
retention, expansion and attraction programs.
DESCRIPTION OF ACTIVITY
The Economic Development Department is responsible for the administration,
coordination and implementation of all activities included in the Economic
Development Annual Work Plan. Time is focused around business retention,
expansion, attraction and resource management.
MAJOR OBJECTIVES FOR 2000
1. Continue Public Relations and Marketing Campaign to heighten
awareness of Cottage Grove in the development community.
2. Provide ongoing support to the Economic Development Authority by
coordinating meetings and events in 2000.
3. Continue to work with Industrial Park owners in developing and
promoting the Cottage Grove Industrial Park.
4. Develop a new strategic plan through 2005.
5. Implement business retention and expansion program. _
6. Monitor changes in legislation regarding Economic Development tools
and other areas that impact the City's ability to attract and retain jobs
and tax base.
•
IMPACT MEASURES •
Actual Actual Estimated Projected
Item 1997 1998 1999 200
Proposals Prepared
Sales Visits Developers & 13 15 15
Brokers
EDA Meetings 13 13 12 12
OUTCOME MEASURES
1. Number of new businesses expanding or locating in Cottage Grove.
Personnel Schedule
Actual Actual Recommend Adopted
Position Title 1998 1999 2000 2000
City Administrator 0 .10 .10
Assistant City 0 .25 .25
Administrator
Management Analysts 0 .54 .54
Economic Development 1.00 0 0
•
Director
Secretary .50 0 0
IP
• Summary Budget
Program No 9280
Six
Month
1997 1998 1999 1999 2000 2000
Actual Actual Budget Actual Recommend Adopted
Revenue
Property tax 27,094 27,120 45,000
Other 7,975 8,276
Interest 6,831 7,794 7,000
Loan 21.371 18,047 65,500 -
Total revenue 63,271 61,237 117,500 -
Expenditures
Personnel 80,671 68,022 84,600 22,538
Commodities 745 371 1,100 29
Contractual 27,186 37,014 24,500 5,495
Transfer out 2,000
Capital outlay - - - - - -
Total 108,602 105,407 112,200 28,062
Fund balance
Beginning balance 444,151 398,820 354,650
Revenue 63,271 61,237 117,500
Expenditure 108,602 105,407 112.200
•
Ending balance 398.820 354,650 359,950
Restricted for
interfund loan 305,300 257,800 210,300
1.!20008 UD War9280.DOC
•
•
City of Cottage Grove
Department Budget
Request
Fund 280 Pent rate 0.0518 1:12000bud1(DET9280.rds)Sheetl •
Department Economic Development FICA rate 0.0765 •
Program 1130 Group ins 385 6/2499
W/C rate 0.0038556
Percent
Over(Under)
1998 1999 2000 Prior year
Object Code Description Actual Budget Detail Request Budget Actual Comments
Personnel:
4100 Salaries
Wolfe,Asst Admin 1§25% 16,800.00
Schroeder,City Admin 10% 8,000.00
Barrett,Analyst at 27% 8,800.00
King,Analyst at 27% 8,800.00
Total 4100 54,925.21 67,000.00 42,400.00"
4110 Overtime 0.00 0.00 0.00 0.00
4120 Salaries part time 1,800.00 1,800.00
BA-OJT worker 0.00 1,800.00
4141 PERA 2,535.84 3,500.00 2,200.00 2,200.00
4142 FICA 4,161.08 5,300.00 3,400.00 3,400.00
4144 Group Insurance 6,100.00 6,700.00 0.00
4148 Worker's Comp 300.00 300.00 200.00 200.00
Total Personnel 68,022.13 84,600.00 60,000.00 -40.90% -26.49%
Commodities
4200 Office Supplies •
500.00
Total 4200 81.45 600.00 500.00
4210 Operating Supplies
400.00
Total 4210 289.42 500.00 400.00
Total Commodities 370.87 1,100.00 900.00 -18.18% 142.67%
Contractual Services
4300 Professional Svcs
Marketing,Brochure Design,Aerial Photos, 5,000.00 1998 without Jean Thome
Caterer/Canopy for Golf Event,Courser Service $3,800
Total 4300 17,290.72 5,000.00 5,000.00
4305 Fees For Service
1,000.00
Total 4305 0.00 1,000.00 1,000.00
4310 Communications
300.00
Total 4310 0.00 300.00 300.00
4311 Postage
Page 1
y City of Cottage Grove
Department Budget
Request
• Fund 280 Pera rate 0.0518 I:\2000budl(DET9280.xls)Sheet1
Department Economic Development FICA rate0 0.0765
Program 1130 Group ins 385 6/24/99
W/C rate 0.0038556
Percent
Over(Under)
1998 1999 2000 Prior year
Object Code Descnption Actual Budget Detail _ Request Budget Actual Comments
1,200.00 Mailing Annual Report:
1600 @ 5.55=$880
Total 4311 0.00 1,000.00 1,200.00 Also,postcards fo golf
outing,info letters,etc.
4340 Printing
Annual Report 4,000.00 Increase for Annual Report;
Marketing Brochure 1,400.00 This year$3402
Brochure-in 1998,$1350
Total 4340 2,009.31 2,200.00 5,400.00
4341 Advertising
4 ads in MNREJ Leasing Guide (4'793) 3,200.00 MNREJ-5%Increase
Misc Ads as needed 1,900.00 over 1999.
Total 4341 5,250.00 4,800.00 5,100.00 .
•
4371 Maintenance/Repair Other •
0.00
Total 4371 40.00 0.00 0.00
4401 Dues/Subscriptions
Metro East 2,500.00
• City Business Subscription 100.00
MAEDC 300.00
AEDC 300.00
Chamber? 1,500.00
Misc 400
Total 4401 4,617.00 5,000.00 5,100.00
4403 TravelTrain/Conferences
Ass't,National Conference (1500'25%) 400.00
Asst,State Conference (500.25%) 100.00
TIF Seminar 200.00
Mileage Reimbursement 300.00
Local Meetings:Seminars 400.00
Analyst Seminar 200.00
Total 4403 3,560.17 3,000.00 1,600.00
4434 Special events
Plaques,Golf Tournament,Bus Tour,other 2,500.00 Golf Toum-1998-$2485.41
Total 4434 3,999.68 1,700.00 2,500.00
4445 Sales Tax 247.56 500.00 500.00 500.00
Total Contractual Svcs 37,014.44 24,500.00 27,700.00 13.06% 8.65%
Capital Outlay:
4520 Fum&Office Equip 0.00 0.00 0.00 0.00
111,
Page 2
City of Cottage Grove
Department Budget
Request
Fund 280 Pere rate 0.0518 I:'2000bud\[DET9280.xls]Sheet1 • '
Department Economic Development FICA rate 0.0765
Program 1130 Group ins 385 6r2499
W/C rate 0.0038556
Percent
Over(Under)
1998 1999 2000 Prior year
Object Code Description Actual Budget Detail Request Budget Actual Comments
Total Capital Outlay 0.00 0.00 0.00 0.00% 0.00%
Other Financing Uses:
4700 Transfers
Total 4700 0.00 2,000.00 0.00
Total Other Financing 0.00 2,000.00 0.00 0.00% 0.00%
Total Department 105,407.44 112,200.00 78,600.00 -29.95% -25.43%
•
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Page 3
7 FUNCTION DEPARTMENT DIV NO ACTIVITY
• General Gov't Economic 285-12 EDA
Development
MISSION
The Economic Development Authority works with its partners to encourage business
and industry, and the creation of quality jobs in the City of Cottage Grove using all tools
and methods that are appropriate.
As we implement this mission, we will be mindful of the following guiding principles:
Encourage quality commercial and industrial development that enhances
the quality of life for Cottage Grove's citizens and is compatible with the
City's Comprehensive Plan.
Utilize sound financial practices in using incentives to attract and expand
businesses in the community.
Consider the use of incentives in instances where they will promote
quality jobs and development for the City.
Recognize the interdependence of the private and public sector in a
healthy community and foster a spirit of cooperation between the two
sectors.
DESCRIPTION OF ACTIVITY
The Economic Development Authority is a paid group of citizens or business persons
that provide public development in various activities to promote economic growth in the
City. Activities include strategic planning, program implementation, financial program
management, n
and industrial park development.
MAJOR OBJECTIVES FOR 2000
1. Develop methodology and process for land conveyance with the Glendennings.
2. Host or make 20 business site visits.
3. Locate or expand 10% of the businesses making site visits. E_
4. Expand marketing campaign targeting companies with leases expiring, increase
follow-up.
•
5. Explore new Economic Development tools such as partnering with a spec office i•_ •
warehouse and small enterprise ventures.
6. Implement aggressive marketing utilizing direct mail, site visits, advertising, web site, , ,
cable TV and special events.
7. Enhance retail opportunities in Cottage Grove by developing relationships, tracking
available space and land, and remaining cognizant of development plans.
IMPACT MEASURES
Actual Actual Estimated Projected
Item 1997 1998 1999 200
EDA Meetings
Land (acres) Sold — Industrial 0
Land (acres) Sold — Commercial
OUTCOME MEASURES
1. Ratio of public funds to private funds leveraged in development projects the
City has participated in financially.
Personnel Schedule 411
Actual Actual Recommend Adopted
Position Title 1998 1999 2000 2000
None
i
• Summary Budget
Program No 1135
Six
Month
1997 1998 1999 1999 2000 2000
Actual Actual Budget Actual Recommend Adopted
Revenue
Interest 10,222 11,656 7,000
Miscellaneous 20,503 30,000
Total revenue 10,222 32,159 37,000
Expenditures
Personnel
Commodities 79
Contractual 14,822 28,515 44,900 3,320
Other charges
Capital outlay - - - - -
Total 14,901 28,515 44,900 3,320
Fund balance
Beginning balance 241,177 236,498 240,139
Revenue 10,222 32,156 37,000
Expenditure 14,901 28,515 44,900
Transfer - - 138,900
Ending balance 236,498 240,139 371,139
• 1.12000BUDWar1135.DOC
City of Cottage Grove
Department Budget
Request
Fund 285 Pera rate 0.0518 1:12000bud4DET1135.xls)Sheetl •
Department Econ Dev Authority FICA rate 0.0765
Program 1135 Group ins
W/C rate 0.0044 5/2499
Percent
Over(Under)
1998 1999 2000 Prior year
Object Code Description Actual Budget Detail Request Budget Actual Comments
Commodities
4200 Office Supplies
0.00
Total 4200 0.00 0.00 0.00
Total Contractual Svcs 0.00 0.00 0.00 0% #DIV/0!
Contractual Services
4300 Professional Svcs
11,000.00
Total 4300 2,836.51 11,000.00 11,000.00
4301 Engineering Svcs
8,700.00
Total 4301 0.00 8,700.00 8,700.00
4302 Legal service
11,000.00 Spent a little over$11,000
Total 4302 11,213.93 10,000.00 11,000.00 past two years. •
4305 Fees For Service
EDA Per Diem: 7 la$30/mtg•12 mtgs. 2,500.00
Misc.as needed 1,800.00
Total 4305 2,481.63 4,300.00 4,300.00
4311 Postage
400.00
Total 4311 0.00 400.00 400.00
4341 Advertising
12 issues.MN Real Estate Journal (12'793) 9,500.00
Others as needed 1,100.00 5%Increase for MNREJ.
Total 4341 11,783.40 10,300.00 10,600.00
4350 Insurance
200.00
Total 4350 200.00 200.00 200.00
4445 Sales Tax 0.00 0.00 0.00 0.00
Total Contractual Svcs 28,515.47 44,900.00 46,200.00 2.90% 4.56%
Total Department 28,515.47 44,900.00 46,200.00 2.90% 62.02% •
Page 1
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 07/08/99
Re: EDA Annual Report and Direct Mail Item 4D
We finally have our Annual Report completed and back from the printer. This has been
a longer project than originally anticipated, with all of the changes we made this year.
However, staff believes that this is an impressive marketing tool and will be of great
value to our Economic Development efforts. In addition, now that we have made the
• changes, next year's Annual Report should be much easier to complete and should be
ready in January, as previous years.
This week, we plan to mail out the Annual Report and the attached letter to the
following:
❖ Our newly-created mailing list of 415 brokers, bankers, architects, engineers,
general contractors, utilities, and government representatives.
❖ The Chamber mailing list.
The attached letter was drafted to introduce our staff to those who are new to the
mailing list, and to those who are not yet aware of some of the changes we have made
this year. It is also an effort to illustrate our commitment to continuously improve our
service level.
Your packet will include a copy of the Annual Report.
I
\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA Memos\July 99 Annual Report.doc
a .
Dear Business Representative,
The City of Cottage Grove understands the needs of growing businesses, and
wants to work to build lasting partnerships. Toward this end, the City has
reformatted its approach to business needs. We believe the result will be an
enhanced service delivery model in the manufacturing sector, while focusing
efforts in commercial development as opportunities arise.
Our top administrative positions have been assigned to business retention and
attraction duties. Our team leader will be.Michelle Wolfe, who as our Assistant
City Administrator brings with her a unique ability to work collaboratively to
achieve desired results. Ryan Schroeder, our City Administrator, who has a
broad array of development experience in both the public and private sectors, will
join her. Other members of the development team include Kim Lindquist,
Community Development Director, Elizabeth Johnson, Finance Director, and •
Chief Building Official Bob LaBrosse. Steve Barrett, Dan King, and Neil
Belscamper will support our lead personnel. With our new team we can commit
to the business community that our level of service will be unsurpassed.
Enclosed is the 1998 Cottage Grove Economic Development Authority Annual
Report, which illustrates highlights of 1998. Further, the Annual report outlines
how we build on success, through our mission and five-year goals. The City is
proud of these recent accomplishments, and wants to work with you to create
opportunities for the future.
Cottage Grove is in the business of helping businesses grow and prosper. If
there is any assistance we can provide to you, please contact Michelle Wolfe at
458-2882. We look forward to working with you in the future.
ipncerel ,
•
Mayor Jack Denzer
F:\GROUPS\PER_ECOMEconomic Development\Mayors Letter2.doc •
City of Cottage Grove
i
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 07/08/99
Re: Genesis Business Center Site Visit Item 4E
On June 24, City Administrator Schroeder, Community Development Director Lindquist
and I visited the Genesis Business Center location in Columbia Heights. Harlan Jacobs
gave us background information and then we visited three of the companies currently
located at this site. It was very interesting.
• After completing the site visit, we felt that it would be beneficial for EDA members to
make a similar site visit. (You should have received a packet of information about
Genesis Business Center, and perhaps the video.) Mr. Jacobs has offered to provide a
similar tour to any EDA members who are interested. At the EDA meeting, I would like
to know if any of you are interested in arranging a site visit. We can select a couple of
dates, and then coordinate with Mr. Jacobs.
Meanwhile, staff will continue to explore the possibilities of setting up a similar program
here in Cottage Grove. We will plan to discuss this further at the next EDA meeting. If
you have any questions, or if you would like a copy of the materials, please feel free to
call me at 458-2882.
•
\\CG_FS1\SYS\GROUPS\PER_ECON\MAW\EDA Memos\July 99 Genesis.doc
City of Cottage Grove
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 07/08/99
Re: Cottage Grove Site Visits Item 4F
Excerpt from 1999 Economic Development Work Plan:
1999 Goal # 1-1 Support existing industry and assist them with expansion
opportunities.
•
Objective A Implement Business Retention and Expansion Program
Task 1: Meet with each manufacturing concern at lest once during
1999 to work on opportunities and challenges.
On June 22, City staff visited with Hal Simonds, Plant Manager at Cogentrix (LS
Power). He provided an overview of the plant and its operation, then gave us a tour of
the facility. We were able to talk about how the City could be of assistance to them. Mr.
Simonds was agreeable to serve as a resource when we are working with potential new
businesses. We are in the process of ordering hats for the employees of Cogentrix,
similar to the hats purchased for Renewal.
On June 29, staff met with representatives of Up North Plastics. Again, we were able to
talk about challenges and opportunities, which was followed by a tour of the facility.
We feel these site visits were beneficial. In the future, we plan to showcase these two
businesses as well as others on the cable television show "Cottage Grove —Your
Development Partner."
1111
F:\GROUPS\PER_ECON\MA\MEDA Memos\July 99 Site Visit.doc
City of Cottage Grove
•
Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator
Date: 07/08/99
Re: EDA Golf Tournament Item 4G
Attached is a memorandum prepared by Dan King. The official invitation for the golf
tournament was sent to 415 on the new mailing list. This mailing list was developed
using sources such as last year's list, a well as a number of new resources. We have
IP already had several phone calls from those interested in reserving foursomes (which
are offered at a reduced fee.) In addition, we have some interest in sponsoring holes,
and will be making some follow-up calls in this area. We are pleased with the response
to our "Hold the Date" postcard, and hope to start seeing the reservations coming in
next week.
Attachment
0
F:\GROUPS\PER_ECON\MA\MEDA Memos\July 99 Golf.doc
City of Cottage Grove Memo
To: Michelle Wolfe
From: Dan King
lf
b�
Date: 07/08/99
Re: EDA Golf Tournament Update
Invitations to the Tournament were sent on Thursday, July 8th, with RSVP's due
August 10th. A fee of$30.00 is being charged this year to help offset some of the
costs, but this will by no means be a fund raising venture. Hole sponsorships will
be offered for $150.00 this year, and we will solicit from some of the same
sources that contributed last year.
•
Two caterers are being considered, Tinucci's and Catering By Joyce. Joyce
would be able to do a barbecue if desired, and is sending a proposal over very
soon. The cost either way will be between $10.00 and $12.00 per person.
Caps for the event have been quoted at $6.90, the City Logo is on the front, with
"City of Cottage Grove" on top and "Economic Development Authority"
underneath. "River Oaks Golf Course" will be on the back.
Prizes being considered include rounds of golf and gift certificates to River Oaks,
as well as umbrellas, golf towels, and Polo Shirts. We also have about 25
sleeves of golf balls with CG EDA printed for door prizes.
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F:\GROUPS\PER_ECON\Dan\Memo Template.doc
City of Cottage Grove
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Memo
To: Economic Development Authority Members
From: Michelle A. Wolfe, Assistant City Administrator ill
Date: 07/09/99
Re: Marketing/Advertising Update Item 4H
This item is intended as a summary of some of our marketing and advertising activities.
CABLE TELEVISION SHOW
• The first show was taped in early June and has been airing since. We taped the second
show on July 8, and it will begin airing next week. The sow is called "Cottage Grove —
Your Development Partner." Kim Lindquist and I talk about current Economic
Development and Community Development issues. We are still pretty new at it, and
hope that we can find ways to continually improve it. In relation to the show, we have
established a Questions and Answer line. Residents and business owners can call the
City's Information Line at 458-6057, and leave their question on the system. We will
then answer the questions on the show. I am planning a Cottage Grove Reports article
about the show and question & answer line for the next issue.
DIRECT MAIL
We have several direct mail pieces going out at this time. The first is the Annual Report
and Introduction Letter, which is going to 415. The second is a letter encouraging
Chamber membership, which will be mailed to City vendor's.
The third direct mail piece you have seen in an earlier draft form. It was sent on July 5
to leasing agents and owners of office and retail space in Cottage Grove. We modified
the letter to include the EDA's suggestion regarding the Web Page. A copy of the letter
is attached.
ADVERTISING
• We are currently planning to place an ad on the Chamber area map and in the Chamber
Business Directory.
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We have been evaluating the advertising plan. Currently, 13 ads are placed with the
Minnesota Real Estate Journal (works out to basically one per month). In addition, we •
run an ad in the 4 Leasing Guides published by the MNREJ each year. We had been
paying for membership in an online directory. We discontinued that earlier this year
since we did not get the results we felt we should.
Dan King prepared a report on a variety of publications. This report includes circulation
and target audience information, as well as preliminary cost information. The cost
information is usually somewhat negotiable. I have attached a coy of the report for your
review.
In looking at the preliminary costs information, we determined the following "cost per
circulation" figures, based on the 12-issue cost:
PUBLICATION NAME RATE RANK
MNREJ .1716 12
Twin Cities Business Monthly .0627 5
Minnesota Business Opportunities .0691 8
Ventures .057 4
Minnesota Technology .09 10
Midwest Business .035 1
City Business .0672 7 •
Expansion Management .0628 6
Site Selection .0740 9
U.S. Sites Did not receive media kit yet
Office and Industrial Properties .109 11
Business Facilities .0472 3
World Trade .0439 2
For circulation reached, the "best cost" alternatives are those ranked numbers 1, 2 3,
and 4. However, we do need to consider the audience reached, and other factors. As
we move towards 2000, staff felt it would be wise to review our advertising strategy to
determine if we are continuing to spend our dollars wisely. Alternatives include:
❖ Continue our current strategy with the MNREJ, with some additional funds for a few
additional ads in other sources.
❖ Choose a new publication or perhaps two to concentrate on for next year.
❖ Look at more partnering with Metro East or others for advertising.
❖ Some combination of the above.
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Based on the rates listed above, we contacted those with rankings of 1 through 4, and
• asked what they could provide to us with a budget of$5000 - $7,000. We received
those proposals, but have not had time to finish analyzing them. (This was based on
the concept of splitting our advertising budget between two publications.) However,
some preliminary discussion with those in the field indicates that perhaps the current
MNREJ strategy is best, but perhaps we should look at expanding our ads (larger ads,
for example.)
ACTION REQUIRED
Staff will review the proposals received; as well as seek input regarding the value of
various publications. At this time, I would like input from the EDA as to a year 2000
advertising plan. I a not looking for final decisions at this time, rather, setting direction
and focusing on the alternatives that seem most viable.
Attachment
MAW
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July 9, 1999
«FIRST_NAME» «LAST_NAME_»
«ORGANIZATION»
«MAILING ADDRESS»
Dear «FIRST NAME»,
The City of Cottage Grove Economic Development Authority would like to work
with you and your office to facilitate the growth of business within our city. To
this end, we would like your assistance in maintaining up-to-date data of
available commercial property within the city, which will be used to refer potential
clients to you.
The Economic Development Department receives numerous inquiries every
week regarding available retail and office space for sale or lease in the city. To •
respond to these, our goal is to have an accurate, current, availability list with
square footage and general lease/sale terms. This list could then be shared with
the inquiring parties, who can contact you directly for more information. By
referring possible clients to your agency, we can work toward the overall goal of
attracting and expanding business in the community. Therefore, your
cooperation in this effort will be beneficial to all involved.
To accomplish this, a member of our staff may be contacting your office
requesting this information, and we will periodically call to assure its continued
accuracy. Additionally, it would be helpful for you to inform our office when any
changes occur, such as filling vacancies, new openings, or pending lease
changes.
As an added convenience for potential clients, the City is considering putting this
information on it's Economic Development Web Page. If you are interested in
this idea, or would rather we not include this, please call and let us know. You
can contact Dan King, Steve Barrett, or Michelle Wolfe with your thoughts on this
matter.
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The organization of the Economic Development Department has changed
recently, and we would like to take this opportunity to briefly introduce the
members to you. Leading the Development Team is Michelle Wolfe, Assistant
City Administrator; who along with Ryan Schroeder, City Administrator, will
coordinate development efforts. Other key members include Kim Lindquist,
Community Development Director; John McCool and John Burbank, City
Planners; and Elizabeth Johnson, Finance Director. Support staff includes Steve
Barrett and Dan King, Management Analysts; and Neil Belscamper, Secretary.
The above individuals work in collaboration to support the efforts of the Economic
Development Authority Board.
Thank you in advance for your cooperation in this matter, we look forward to
working with you in the future to facilitate the growth of business in the Cottage
Grove area. If you have any questions or concerns, feel free to contact any of
the above at 651-458-2800.
Sincerely,
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Michelle Wolfe
Assistant City Administrator
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COTTAGE GROVE ECONOMIC •
DEVELOPMENT AUTHORITY
PUBLISHER RATES FOR MARKETING AND
ADVERTISING
1. Publication: MN Real Estate Journal
Territory: State
Circulation: 4,400, Every other week
Target Audience: Developers, Brokers, Financial Advisors, Business
Owners
Cost for 1/4 page ad: 1X = $755 per ad
Also publishes: MN Real Estate Journal Leasing Guide
(Quarterly) = $755 per ad
Contact: Jeff Johnson, 612-885-0815 (ext. 204)
Notes:
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This is the City's main publication for advertising, with monthly
advertisements, along with ads in the Leasing Guide, for 1999.
2. Publication: Twin Cities Business Monthly
Territory: Metro Area
Circulation: 33,500, Monthly
Target Audience: MN Business Owners, CEO's, Developers
Cost for 1/4 page ad: 1X = $2,100, 12X = $1,605 each
Contact: Connie Van Housen, 612-336-9214
Notes:
Metro East Partnership had an insert in the February Issue, should
seriously consider if offered in 2000. September Issue will focus on
Economic Development, deadline for submission is July 26.
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3. Publication: MN Business and Opportunity
Territory: Metro Area
Circulation: 17,000, Monthly
Target Audience: Business Owners, CEO's, Developers
Cost for % page ad: lx = $1,174, 12X = $898 each
Contact: Megan Mitch, 612-844-0400
Notes:
Metro East Partnership is sponsoring a supplement to the August Issue.
4. Publication: Ventures
Territory: Metro
Circulation: 25,000, Monthly
Target Audience: Small-Medium Business Owners, CEO's
Cost for 1/4 page ad: 1X = $1,425, 12X = $787
Contact: Terry Johnson, 612-338-4288
Notes:
• Features an annual "Growth Guide" issue that highlights business support
providers in the state. Cost is around $2,400.
5. Publication: MN Technoloay
Territory: State
Circulation: 20,000, Every Other Month
Target Audience: MN Technology and Manufacturing Companies
Cost for % page ad: 1X = $1,800, 12X = $1,100
Contact: Michael Armel, 612-337-9888
Notes:
September/October Issue will focus on development in the NE part of the
state. They have offered to increase the size of any ad free of charge for
this issue to encourage participation in 2000.
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6. Publication: Midwest Business and Industrial Property 11111
Territory: Midwest Region, 12-state area
Circulation: 20,000, Every other Month
Target Audience: Business Owners, Developers, Brokers
Cost for 1/8 page ad: 1X = $700 3X = $650
Contact: Ridge Tenney, 888-670-3370
Notes: July/August Issue will focus on Minnesota, Deadline is July 2
7. Publication: City Business
Territory: Metro
Circulation: 19,000, Weekly
Target Audience: Business Owners, CEO's, Management
Cost for '/ page ad: 1X = $1,276 13X = $1,085
Contact: Tammy Mencel, 612-288-2136
Notes: Publishes annual "Book Of Lists" in December, and
"Space" Leasing Guide in the spring and fall.
8. Publication: Expansion Management •
Territory: National
Circulation: 45,000, Monthly
Target Audience: Business Owners, CEO's
Cost for 1/4 page ad: 1X = $2,830, 3X = $1,870
Contact: Chris Cheney, 877-530-8801
Notes: www.BPAl.com/circulation_library
9. Publication: Site Selection
Territory: National, International
Circulation: 45,000
Target Audience: CEO's, Owners
Cost For 1/3 page ad: 'IX = $3,332, 12X = 2,482
Contact: 888-299-7836
Notes: Official publication of the International Development Resource
Council
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• 10. Publication: US Sites and Development
Territory: National
Circulation: monthly
Target Audience:
Cost For 1/4 page ad:
Contact: Tom Reed, 800-366-0676
Notes: Also publishes a quarterly Relocation Journal that is
distributed at Trade Shows nation wide to Business Owners and
Managers. Cost for 1/4 page ad: 1X = $1,250, 4X = $950
11. Publication: Office and Industrial Properties
Territory: National
Circulation: 20,000
Target Audience: CEO's, Owners, brokers
Cost For 1/4 page ad: 1X = $2,180, 8X = $1,853
Contact: Mike DeAnzeris 617-236-1800
Notes:
• 12. Publication: Business Facilities
Territory: National, International
Circulation: 43,500
Target Audience: Business Owners, Brokers
Cost for 1/4 page ad: 1X = $2,054, 12X = $1,788
Contact: Henry Korff, 800-524-0337
Notes:
13. Publication: World Trade
Territory: National, International
Circulation: 84,000
Target Audience: Mid-Large size companies looking to expand
Cost for '/ page ad:1X = $3690, 12X = $3190
Contact: Bob Braiser, 949-789-3515
S
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OTHER FORMATS:
Organization of Commercial Realtors Web Site: (OCR) would provide a
link to our Web Site from their Web Site (www.00R.org) for a fee of
$1,000 per year. Banner ads are also available for an additional $250 per
month.
Contact: Judy Puhl, 612-988-3136
Notes:
This service was discontinued in April 1999
US Real Estate Register: This is an annual reference directory aimed at
Property Managers of major businesses and Real Estate Brokers
a�
worldwide. The City of Cottage Grove is currently listed for no charge
under the Economic Development section with CG EDA and a telephone
number. The Register also publishes Property Digest. More information
is being sent.
Contact: Mike Deanzers, 617-236-1800
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F:\GROUPS\PER_ECON\Dan\marketing and promotion publications.doc