2017 Annual Report | Alexandria Area Economic Development Commission

ANNUAL REPORT ‘17 324 Broadway Street, Suite 101 Alexandria, Minnesota 320.763.4545 aaedc@alexmn.org

Alexandria Area Economic Development Commission

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table of contents

4 Who We Are 5 Future Plans 6-7 2017 Projects 8-9 Area Development 10-11 Community & Workforce Development 12-13 Communications & Marketing 14 Lakes Area Economic Development Authority 15 2017 Board Members

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Words from the

Executive director It is with much pride that we present our 2017 annual report that summarizes our economic development projects and success stories for this past year.

Again, the AAEDC, along with our communities and businesses, experienced a very successful year.

Nicole Fernholz Executive Director Alexandria Area EDC

The AAEDC continues to forge strong partnerships with our businesses, communities, and our local governmental units.

With assistance for our efforts, our businesses continue to create jobs, wages, and tax base; three critical components in measuring economic success and vitality.

Through the use of our economic development programs, the AAEDC assisted many of our companies with opportunities to grow and prosper in the Alexandria Area and Douglas County.

We embarked on and completed a strategic plan that spells out our focus for the next three years. While the AAEDC has a broad impact in a variety of areas affecting the region’s economic health and vitality, its greatest area of both need and opportunity

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is workforce development. As businesses in virtually every industry face a growing shortage in skilled workers, the AAEDC is poised to facilitate a regional strategy to drive advancements in nearly every area that touches this barrier to expansion—housing, community amenities, inclusion/ diversity, and community partnerships.

Much of our work focused on community growth and development in 2017, an initiative that will continue well into 2018. We continue to grow the Alexandria Area as a regional center of commerce and economic activity through long range community planning and regional initiatives. These community initiatives take dedication and passion, two characteristics this organization deeply embraces.

We are proud of our accomplishments and hope you

“We continue to forge strong partnerships with our businesses ” see the value in this organization.

Please take a few moments of your time to enjoy this publication, and we hope you will continue to support the AAEDC as we continue to forge partnerships with our businesses and lead our communities as it relates to economic development, growth, and vitality.

On behalf of the AAEDC Board of Directors, Staff and all our partners, we wish you a very prosperous and rewarding 2018.

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Who We Are The mission of the AAEDC is to provide regional leadership in a collaborative effort to facilitate job growth.

The vision of the AAEDC is to see the area as a regional center sustaining a vibrant, growing economy that is attrative to businesses and to a capable, productive workforce.

CORE VALUES • Stewardship | Provide leadership for an action-orientated coalition to support economic & community growth in our area.

• Trust | Earn and sustain the trust of our businesses, communities & the elected leaders we serve.

• Regional Collaboration | Recognize and leverage the interrelatedness of people, businesses & communities in the area and support development efforts that benefit the region.

• Teamwork | Engage the public, private and nonprofit sectors and work cooperatively to build and maintain effective working relationships.

• Respect | Recognize the area’s history, natural resources and people to embrace the opportunities they provide.

• Financial Accountability | Provide responsible stewardship of public and private assets and resources.

• Innovation | Innovate to complete and win.

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Future Plans The AAEDC has a broad impact in a variety of areas affecting the region’s economic health and vitality, its greatest area of both need and opportunity is workforce development.

STRATEGIC FRAMEWORK 2017-2019 Workforce Development • Drive a process to create a collective understanding of area labor force needs.

• Develop a process for linking housing needs and community assets to expand workforce housing options in the region.

• Retain more young workers & families in the Alexandria region.

• Expand and diversify the pipeline of skilled workers for the Alexandria area businesses (current and prospective).

Business & Community Development • Create an intentional community for emerging and established businesses to learn and operate in a collaborative, efficient and shared environment.

• Increase accessibility to revolving loan funds for area businesses.

• Expand the Living Alexandria Area campaign to advance marketing to new business prospects.

• Identify opportunities for expanded partnership with area businesses.

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Economic Development

2017 Projects Cultivating and supporting an entrepreneurial spirit is what the Alexandria area is about. Many of the area businesses and companies were started right here. We know how to help hard working people with great innovation and ideas.

Industrial Park: The Lakes Area Economic Development Authority negotiated and approved the excavation, grading and lot preparation. The redesign of the site included the clearing of trees, grading, importing fill, sand and erosion control. This proactive measure makes the industrial land more shovel-ready and appealing to developers.

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D&D Machining is a new entity formed in Garfield to conduct a niche service by focusing specifically on precision milling.

They provide steel, aluminum, bronze, and plastic parts to local packaging companies such as Douglas Machine, GCI Engineered Solutions, and Brenton Engineering. They also provide parts to Skid Steer Central, a local manufacturer of skid steer attachments. To assist with the start up costs, the AAEDC assisted with a $37,500 loan from their GAIN fund held at West Central Initiative.

Unique Opportunities, LLC. To help with the need for affordable housing in the City of Alexandria, Unique Opportunities, LLC proposed to construct a 12-unit multi-family apartment complex located at 1810 6th Avenue East. Total project costs were estimated at $1,532,000. To assist with the construction of affordable units, the developers requested from the City of Alexandria an 18-year Housing TIF District to keep all units rent and income restricted. Ultimately, the project was denied, however, the project will move forward as market rate rental units.

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Full Circle International is the developer of innovative products serving the drywall industry, focusing on paint and sanding products. Their warehouse and distribution center located at 3860 County Rd 40 NW, Garfield, MN wasn’t sufficient to meet their needs, and proposed an expansion on their current facility. To assist with the 9,000-square foot addition, they requested a 10-year tax abatement from the City of Garfield. The company was required to upfront the costs and create 2 new FTE positions at wage levels equal to or above the salary survey classification set by the Minnesota Department of Employment and Economic Development. The expansion will increase the market value of the property to roughly $752,836 and generate and increased property tax of $13,168 per year.

Owl Books & Brew Store is a new bookstore and coffee shop located at 216 Central Avenue in downtown Osakis. The independent bookstore focuses on the selling of new and used books, coffee, tea and local handmade goods. The facility also offers free WiFi hotspot for Osakis. The building had previously been vacant, and the entire property needed renovations. The AAEDC partnered with the Osakis Economic Development Authority to assist with the project. Each entity loaned $10,000 to assist with the purchase of the property.

Unique Opportunities, LLC 94 unit. In response to the increased demand for affordable housing in the area, Unique Opportunities, LLC proposed the construction of a 94unit tax credit apartment building located in the Woodland Heights area near County Road 46. To assist with the project, the developer requested from the Lakes Area EDA $6,000,000 of Tax Exempt Multifamily Housing Revenue Bonds, Series 2018. All units will be required to comply with 50% test, meaning that the rent does not exceed 30 percent of the annual income of a family whose income equals 50 percent of the median income for the area, as determined by Housing & Urban Development (HUD).

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Alexandria Area

Development The Alexandria area continues to be a vibrant regional center. These projects represent a sampling of the areas commercial development. Each of these projects have an estimated valuation/cost of $100,000 minimum.

Area Projects Schmidt/Angela Trust Douglas County North Branch Business Plaza, LLC Wilkins Enterprises LLC

Size

Cost

Commercial Building

7,168

$100,000

Alteration

$100,000

Addition

1,200

$115,632

Commercial Building

5,346

$130,600

Lake Geneva Christian Center

Alteration

$135,000

Hens & Merten Corp.

Alteration

$150,000

Douglas Machine, Inc

Alteration

2,517

$150,000

Commercial Shed

8,640

$157,800

Lybeck Properties LLC

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Type

Mid-Minnesota Federal Credit Union

Alteration

$250,000

School District 206

Alteration

$300,000

Douglas County

Alteration

$308,980

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Area Projects Archland Property I, LLC

Alteration

DAD, LLC

Alteration

Size

Cost $350,000

4,608

$400,000

Steussy Investments, LLC

New Construction

Luther Crest Bible Camp

Addition to Chapel

1,088

$477,400

Alteration - YMCA Daycare

4,418

$500,000

Visitor Center

2,749

$504,800

Knute Nelson Douglas County

$408,484

3M Alexandria

Alteration

$539,150

Douglas County

Alteration

$620,000

Sandwell Properties, LLC

New Construction

7,508

$685,483

Addition

4,077

$810,000

New Construction - 12 Apartment

15,720

$1,269,457

Addition

36,000

$1,972,000

Evangelical Covenant Church

New Constuction

15,500

$2,000,000

Mental Health Center, Inc.

New Constuction

10,354

$2,228,000

New Construction - Sport Complex

70,532

$6,880,000

Geneva Capital Unique Development, LLP Aagard Properties, LLC

Northstar Christian Academy

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Community and

Workforce Development The Alexandria Area is a regional center sustaining a vibrant, growing economy that is attractive to businesses and to a capable, productive workforce.

Alexandria Area Job Fair The annual Alexandria Area Job Fair was held February 1, 2017 at Alexandria Area Technical & Community College (ATCC) Law Enforcement Gym. There was great turnout by both participating companies as well as area job seekers; 52 companies occupied a booth and over 350 ATCC students and job seekers attended.

West Central MN Employment Law Update The 14th Annual employment law update was held June 7, 2017. Attorneys throughout the state presented four breakout sessions in the morning followed by a panel discussion. In the afternoon, speaker Matt Jones presented, “HR is a Marathon”

Abby Strom Community & Workforce Development Coordinator Alexandria Area EDC

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Community Job Fairs The AAEDC’s Living Alexandria Area booth attended college job fairs with businesses in the Alexandria Area with anticipation of attracting muchneeded workforce to our area. The booth is used to promote the livability of the area and point job seekers to companies at the job fair with us. The job fairs attended this year were; North Dakota State College of Science (NDSCS), St. Cloud Technical & Community College (SCTCC) and North Dakota State University (NDSU). We will be attending more fairs in the upcoming year joined by multiple businesses excited to represent this area.

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Academies of Alexandria The Academies of Alexandria continued to play a big role throughout the Alexandria Area in 2017. The Alexandria Area High School (AAHS) and AAEDC were busy connecting students with businesses in the community to help provide them with new opportunities in hopes of finding a career they are passionate about. The unique experiences are preparing students for their future, whether they continue their education or step directly into the workforce. Approximately 2,492 hours were volunteered in the 2016/2017 school year with 1,209 interactions.

West Central MN SHRM Wage & Benefits Survey Every other year the AAEDC assists SHRM in their Wage & Benefits Survey which is a comprehensive survey of compensation, company benefits and policies for the West Central MN Area.

This year, 49 companies participated in the 2017 West Central MN Wage & Benefit Survey (38 companies reported for both surveys, 8 reported only benefits and 3 reported only wages). The AAEDC collects and compiles all the data into a final document for participating companies.

The job fair, employment law and wage & benefits survey are organized by West Central MN SHRM – the AAEDC is an active member of this organization and has a major impact on the events with business recruitment, marketing and organization activities.

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Approximately 2,492 hours were volunteered in the 2016/2017 school year with 1,209 interactions.

Economic Huddle In partnership with ATCC Customized Training, to celebrate area Small Business and Economic Development weeks, community members were invited to here Chris Kuehl present, “Year of the Rooster- Are We Awake Yet?” Chris did a great job and the event was well attended.

Entrepreneur and Small Business Trainings The AAEDC and ATCC Customized Training Center teamed up for another year to offer regional small business trainings for entrepreneurs and small businesses in the Alexandria Area, with funding provided by West Central Initiative (WCI). We were very pleased with the number of classes and attendees this year; 11 different classes were held throughout the Spring and Fall.

Approximately 32 different businesses were touched and 319 people attended throughout the year.*

Training offerings included: •

How to Market Your Business and Engage Customers on Instagram

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Dealing with Difficult People

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Conflict Management & Rapid Resolution Skills

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Economic Huddle

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Understanding Communication Styles with People Reading Skills

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Team Building with Goal Setting, Achievement Skills and Fun!

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Healthy People Make Healthy Leaders

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Internet Marketing and Google Ads

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Stress Reduction, Life Balance and Healthy Living for Working Professionals

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3 “Healthy Habits” for Customer Service

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Entrepreneur or Freelancer

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ABC’s of Starting an LLC

*Please note that the 319 is duplicated headcount; meaning some of the same people attended multiple sessions.

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Communications &

Marketing The Alexandria area is a close-knit community with strong family values where you can make supportive and friendly connections. We have outdoor recreation for all seasons to fit your active lifestyle and most big-city amenities without the big-city traffic and congestion…that’s #LivingAlexArea!

The AAEDC’s “Like it? Live it.” social media campaign reached over 1 million people, and made over 2.4 million impressions.

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+250%

+223%

+55%

over 2016

over 2016

over 2016

Website users

Website sessions

Website PageViews

+103%

+90%

+82%

+81%

over 2016

over 2016

over 2016

over 2016

facebook Likes

facebook Reach

facebook Engagement

facebook Impressions

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AAEDC Publications Alexandria Area Fact Guide | This demographic guide gives an overview of statistics from the Douglas County area.

Financial Assistance Guide | Provides information on the financial incentives and revolving loan options for start-up and expanding businesses from around the area.

samantha graf Communication & Marketing Coordinator Alexandria Area EDC

Area Events Small Business Week | In support of our local businesses and cultivating an entrepreneurial spirit in the area the AAEDC created a tour of small businesses during this national week (May 1-5). These businesses were also featured during the tour through our social media channels.

Minnesota Manufacturing Week | During manufacturing week (October 2-6) in partnership with the Alexandria Technical & Community College we offered a tour of the college’s manufacturing programs as well as a sneak peek at their new nursing learning labs.

TOP MICROPOLITAN IN MINNESOTA

2013

2014

2016

Business & Industrial Appreciation Day | Anderson Funeral Home & Crematory was the 2017 BIAD recipient awarded in October by the AAEDC & ALA Chamber of Commerce. The event was a celebration of the success, growth and impact Anderson Funeral Home & Crematory has had on our local and statewide economy.

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Lakes area economic

development authority

POWERS OF EDAS • Tax abatement • Ability to enter into contracts

The AAEDC works in partnership with the Lakes Area Development Authority to meet their overall goals. The LAEDA was organized in 2004 through special state legislation with approval of the State of MN and the organization’s founding members to formalize and stabilize the funding process of economic development efforts in Douglas County, MN. Because of the long-term nature of many initiatives and investments needed to continue to grow our community, stable funding is crucial to the success of economic development efforts.

• Sale of bonds

The mission of the LAEDA is to support the mission of the AAEDC by providing fair and equitable resources.

• Participation in limited

BUSINESS STRATEGIC The LAEDA model is the first of its kind in Minnesota to bring together communities and townships under a formal structure with designated EDA powers.

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• Economic Development Districts • Levying of taxes • Creation of Tax Increment Financing (TIF) Districts • Acquisition and sale of real estate and person property partnerships

BOARD OF DIRECTORS Board of Directors for the LAEDA include: Mayor Sara Carlson (City of Alexandria), Joel Dahlheimer (Alexandria Township), Gerhard Thoennes (LaGrand Township) and John Nienaber (City of Garfield).

PARTNERSHIPS A formal partnership between the City of Alexandria, Garfield, and the townships of Alexandria & LaGrand that is considered to be an innovative model in addressing local, long-term economic development issues across geographical boundaries.

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2017 Board of directors

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Mark Grandgenett

Jeff Patience

Deena Steffl

Kevin Gorghuber

Lake Mary Township

City of Alexandria

LaGrand Township

Carlos Township

Julie Critz

Nicole Klimek

Bruce McKirdy

Joani Nielson

Hudson Township

Alexandria Township

City of Alexandria

City of Alexandria

Community Liaisons: Mayor Sara Carlson | City of Alexandria, Commissioner Charlie Meyer | Douglas County, Al Crowser | ALP Utilities, Joel Dahlheimer | Alexandria Township, Dave Wolf | Gardonville Cooperative Telephone Association, LivingAlexArea.org Tara Bitzan | Alexandria Lakes Area Chamber of Commerce,

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The Alexandria areas economy provides opportunities for career growth while still having a relaxed small town feel.

Alexandria Area Economic Development Commission 324 Broadway Street, Suite 101 Alexandria, MN 56308 320.763.4545 aaedc@alexmn.org LivingAlexArea.org

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