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ITEM 2 Economic Development Strategic PlanningMEMORANDUM TO: Mayor and City Council FROM: Lori Johnson, City Administrator DATE: March 4, 2014 SUBJECT: Economic Development Strategic Planning ITEM 2 Following the Council's direction to proceed with economic development strategic planning in 2014, 1 have requested proposals for a facilitator experienced in economic development strategic planning. I have received two proposals representing two different spectrums of strategic planning. Before I proceed, I would like further direction from the Council on what your expectations and goals are for the strategic planning sessions. In addition to gathering input from you, I will present and review the two proposals I received at the meeting. Total cost for this is coming out to be $1000.00 which includes county industry data and my time. What do you think? Time Frame - Two / three 2 -hr sessions discussing the following: Agenda: - Education o Cover goals of Economic Development at the local town level o Discuss tools small cities can use to encourage Economic development o Discuss how to measure accomplishments in economic development -- Facilitation o Determine what are the economic development priorities of Otsego o Review of city & county data that will help us decide on our priorities o Moving forward on development al priorities Thank You Adeel Ahmed Associate Extension Professor / Extension Educator University of Minnesota Extension - Center for Community Vitality St. Cloud Regional Office Website: bM2://www.extension.umn.edu/Communit Phone: 320-203-6109 Economic Development Services, Inc. February 26, 2014 Lori Johnson, City Administrator City of Otsego 13400 - 90th Street NE Otsego, MN 55330 RE: Economic Development Strategy Dear Lori: Thank you for the opportunity to submit this proposal to the City of Otsego. Economic development strategic planning processes identify emerging development issues and opportunities, align community resources to achieve long term goals and are important to the vitality and economic health of communities. Economic development strategic planning is a core component of the consulting practice I established in 1994; I've prepared more than thirty-five economic development strategies for communities in six states. These plans are grounded in research, reflect realistic community aspirations, and provide a practical roadmap for communities. They reflect an understanding of all aspects of economic development practice including infrastructure and site development, financing, strategic marketing and business attraction, business retention and expansion, and tax base development. It would be a pleasure to work with you and the leadership in Otsego to develop an economic development strategy that builds on the community's many strengths. Sincerely, (--,-I nna King, C , CEDFP President jking@econdevelop. corn 612 925.2013 3109 l?je.. .)i)th :iLCE?£?t 4120-4, MN 55,41 Project Description Economic Development Services, Inc. will support the City in preparing an economic development strategy; the process will include the following. A situation analysis will serve as the foundation for the strategic plan. The analysis will include a review of development sites and economic, demographic, business information. An on-line survey will be provided to the City for distribution to local bankers, targeted businesses and other stakeholders. Economic Development Services will contact external development resources such as DEED, GREATER MSP, utilities, metro area brokers/site selectors to gather their perceptions about Otsego's strengths, weaknesses and opportunities for development. A summary of the situation analysis will be presented at the first facilitated session ensuring that all participants - well -seasoned or newcomer - can participate effectively in the facilitated sessions. Two facilitated sessions will be held, each will be approximately 2.5-3 hours in length, depending upon the number of participants. The first will include a review of the situation analysis, facilitated discussions and identification of priority issues. The second session will occur approximately one month after the first session and include a presentation on how other communities have successfully addressed 1-2 priority issues identified in the first session. Participants in the second session will recommend Otsego's economic development goals and priorities for a 2-3 year period. An important outcome of this process is the shared knowledge and vision that develops during the planning process. This common understanding enables the community to work together effectively over time to achieve short-term and long-term goals. Project Schedule and Deliverables The schedule to complete the project is approximately 3 - 4 months as detailed below. ■ Month 1- research and prepare presentation ■ Month 2 - first facilitated session; research and prepare presentation for second facilitated session ■ Month 3 - second facilitated session; prepare draft strategy ■ Month 4 - present strategy Deliverables will include a PowerPoint summary of the situation analysis, and an economic development strategy that clearly defines priorities, goals, action steps and a timeline. Fees and Expenses The cost for the scope of services described above is $10,200 plus expenses. Expenses (mileage, copies, essential meals and other direct expenses) are estimated to be $600. This includes meetings as follows. ■ Project start-up with city leadership and tour of the city and key development areas A ■ Two facilitated sessions with approximately 15 - 20 participants each ■ Final presentation If Economic Development Services is selected, we will refine the scope of work and price to best meet the city's needs prior to entering into a contract. The City of Otsego will be responsible for providing existing plans, reports, information on available property and existing infrastructure, providing a tour of key development sites, distribution an electronic survey, and providing meeting facilities and hospitality -related expenses. Related Project Experience - Economic Development Strategic Planning Projects ■ City of Becker ■ City of Belle Plaine ■ City of Cottage Grove ■ City of Jordan ■ City of Monticello ■ City of Red Wing ■ City of Sartell ■ City of West Saint Paul ■ Alexandria Area Economic Development Commission ■ APEX (Duluth and Northeastern MN) ■ Brainerd Lakes Area Development Corporation, Brainerd ■ Owatonna Partners for Progress ■ Carver County and Carver County Community Development Agency ■ Dakota County Community Development Agency ■ Harrison County, Indiana ■ Sherburne County (SCEDA) ■ Cambridge Development Alliance (1999 and 2003) ■ Green Bay Area Chamber of Commerce, Minnesota ■ Monett Missouri Chamber of Commerce ■ St. Cloud Area Economic Development Partnership (2004, 2005) ■ Arizona Strategic Partnership for Economic Development 3 Personnel Assigned to Otsego Economic Development Strategy Janna King — CEcD, EDFP The strategic planning process will be led by Janna King, CEcD, EDFP who has been active in economic development in Minnesota and Texas since 1979. She is recognized nationally for her economic development strategic planning expertise and is recognized regionally for establishing successful economic development programs in St. Cloud and Little Falls, Minnesota, and Midland, Texas. Janna founded a consulting practice, Economic Development Services, Inc. in 1994 and has worked with clients in ten states, with a concentration in Minnesota and Wisconsin. Clients include cities, counties, non-profit economic development organizations, chambers of commerce, utilities, regions and state-wide organizations. Janna brings the insights gained through front-line leadership of successful economic development organizations to her consulting assignments. In the early 1980s Janna established and led a county -wide non-profit economic development effort in Morrison County, Minnesota. Faced with the loss of over 30% of the manufacturing base and interest rates hovering between 15-20%, Janna established an enterprise zone and built a revolving loan fund with over $1 million in assets. Results included two management buyouts retaining 300 + jobs; two industry attractions creating 400+ jobs; assistance to seven smaller operations, creating in excess of 150 jobs. One project resulted in a 14% decline in welfare participation. Janna served as the first president of the St. Cloud Area Economic Development Partnership, implementing an extensive business retention/expansion visitation program that resulted in expansion support for numerous manufacturers. She led an initiative that created a workforce training program for an industry cluster in the community; and crafted another workforce initiative involving the technical college and university that attracted a major employer to a long vacant 262,000 square foot facility. Janna also served as president of the St. Cloud Downtown Development Corporation during a period of significant growth and change in the downtown area. In 1990, Janna was recruited to lead the 1,600 -member Midland Texas Chamber of Commerce and the Forward Midland economic development initiative. Engaging volunteers and a 22 -member staff in the development of a strategic plan was key to focusing the efforts of the Chamber and enabling the organization to implement a number of initiatives. These included an award-winning economic development marketing program that attracted three companies from California; award-winning tourism/convention marketing strategies; a transportation corridor partnership resulting in the construction of a new highway and border crossing; a school -to -work partnership; a "buy local" campaign, and several initiatives in response to changes affecting the petroleum industry. Janna served as the founding president of a statewide SBA 504 company in Austin, TX and on the board of directors of the Economic Development Association of Minnesota. She currently serves as treasurer of the MN Economic Development Foundation and on the Partner Advisory Council for GREATER MSP. 4 Janna has earned both the Certified Economic Development Financing Professional credential (EDFP, National Development Council) and the rigorous Certified Economic Developer designation (CEcD, International Economic Development Council), which reflects mastery of all critical aspects of economic development practice. She has served as an instructor for the International Economic Development Council Economic Development Strategic Planning Course since 2007. References Alexandria Area Economic Development Commission Strategic Plan 2013-2015 Jason Murray, Executive Director Alexandria Area Economic Development Commission 610 Fillmore St, Suite 1 Alexandria, MN 56308 (320) 763-4545 imurrav@rea-alp.com Economic Development Strategy and Action Plan John Sullivan, Economic Development Director Carver County Community Development Agency 705 Walnut Street Chaska, MN 55318 952 448-7715 iohns@carvercda.org 6i