2014 ANNUAL REPORT WWW.ALEXMN.ORG
DIRECTOR LETTER On behalf of the Board of Directors, we are honored to share the 2014 Annual Report for the Alexandria Area Economic Development Commission. We are blessed to represent a community and region that has such a strong foundation of economic vitality and success. This report provides you with a snapshot of our abilities in economic development and how our organization is supporting our businesses and communities. Our community and region continue to garner the national spotlight as one of the fastest growing micropolitans in the nation, which much is measured on the investment and commitment of our business to this community. The AAEDC is very proud to support this investment in our community with resources in economic development through support of our elected officials. We have made great progress on many fronts; the Academies of Alexandria are up and running with great support from our community, our partnership with the Alexandria Technical & Community College to provide entrepreneurial and leadership training is growing and improving every year, and the AAEDC and LAEDA continue to forge new projects with business that support job creation and growth in our region. Our work isn’t done and we have much to accomplish in meeting our community, workforce and economic challenges. But let’s take to pause to reflect on our recent success stories, enjoy the accomplishments, and cherish the partnerships that have made this community strong. We extend a sincere thank you to our many community and civic partners for helping fulfill our mission and vision for this region. We are very fortunate to have such a strong network of businesses, community leaders, and governmental partners that make our work in economic development meaningful and impactful. It is this very network that clearly has shaped our success and has set in motion a very bright future for this community and region. In all, these efforts have ensured the rise of the Alexandria region as a one of the strongest regional centers in Minnesota – a vibrant, thriving community that is set to compete on a national level. On behalf of our board and staff, we wish you a very prosperous and successful 2015. Sincerely,
The region is a vibrant thriving community that is set to compete on a national level. 2 | www.AlexMN.org
Jason Murray AAEDC Executive Director
BOARD OF DIRECTORS & STAFF
Mark Grandgenett Lake Mary Township
Brent Smith
City of Alexandria
Jeff Patience
Alexandria Township
Deena Steffl
LaGrand Township
Kevin Gorghuber Carlos Township
Mary New
Hudson Township
Ex-Officio Members and Invited Guests Al Crowser - ALP UtilitIes Mayor Sara Carlson - City of Alexandria Commissioner Dan Olson - Douglas County Bruce McKirdy- Alexandria Lakes Area Chamber of Commerce Joel Dahlheimer - Alexandria Township
Tom Wacholz
City of Alexandria
Dr. Kevin Kopischke City of Alexandria
Jason Murray Executive Director
Nicole Fernholz Marketing Coordinator
Dave Wolf - Gardonville Cooperative Telephone Association
AlexMN.org | 3
STRATEGIC PLAN The
mission of the AAEDC is to provide regional leadership in a collaborative effort to facilitate job growth
CORE VALUES Stewardship - Provide leadership for an action-orientated coalition to support economic and community growth in our area. Trust - Earn and sustain the trust of our businesses, communities and the elected leaders we serve. Regional Collaboration - Recognize and leverage the interrelatedness of people, businesses and 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 and embrace the opportunities they provide. Financial Accountability - Provide responsible stewardship of public and private assets and resources. Innovation - Innovate to compete and win.
The
vision of the AAEDC is to see the area as a
regional center sustaining a vibrant, growing economy that is attractive to businesses and to a capable, productive workforce
4 | www.AlexMN.org
FOCUS AREAS
ECONOMIC DEVELOPMENT
WORKFORCE DEVELOPMENT
COMMUNITY DEVELOPMENT
Lakes Area Development Authority 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.
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.
PARTNERSHIPS
A formal partnership between the City of Alexandria and Garfield, and the Townships of Alexandria and LaGrand that is considered to be an innovative model in addressing local, long-term economic development issues across geographical boundaries.
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).
The
POWERS of EDAs • • • • • •
Tax abatement Ability to enter into contracts Sale of Bonds Economic Development Districts Levying of taxes Creation of Tax Increment Financing (TIF) Districts • Acquistion and sale of real estate and personal property • Participation in limited partnerships
mission of the LAEDA is to support the mission of the AAEDC by providing fair and equitable resources
AlexMN.org | 5
ECONOMIC DEVELOPMENT 2014 Projects
Pfeninger Warehouse
1
Pfeninger Warehouse LLC owns 37.37 acres with a 100,000 warehouse and distribution center on South Highway 29 in Hudson Township. In 2014, the company built an additional 100,000 square feet of warehouse, connected to the existing building. The company specializes in warehouse storage of general freight, agricultural and industrial products. The main clients of Pfeninger Warehousing need clean, controlled access to warehouse facilities. Pfeninger will be renting the warehousing facilities to several companies, but they will also be providing product handling and distribution for these companies. Total construction costs were estimated at $4.4 million, with Douglas County supporting the expansion with a ten year tax abatement structured by the AAEDC.
Viking Plaza Associates plans to redevelop the former automotive center property, located at 3109 South Hwy 29. The project will consist of removing the old automotive center, realigning the frontage road, new sewer and storm sewer connections, along with the construction of a new 11,000 square foot retail center. Total project is estimated at $1.2 million. The City of Alexandria supported the redevelopment project with a small tax abatement to assist with building removal, site preparation and clean-up costs.
2 Viking Plaza Associates
3
Full Circle International
6 | www.AlexMN.org
Full Circle International manufacturers and distributes drywall sanding tools and abrasives. The company broke ground on a 7000 square foot office and distribution facility, with a total project cost of $507,000. The AAEDC participated in the project by working with the City of Garfield with parcel annexation assistance and tax incremenet financing. The project also was approved with a GAIN loan through the Great Alexandira Industrial Network.
Choices Home Care LLP is a for-profit home health care service located in Alexandria, MN. They provide home care for disabled individuals in their homes. The majority of clients are disabled children who require help while their parents are outside of the home working. In 2014, the company needed several facility and code upgrades. Through assistance of AAEDC, the company received a loan through the City of Alexandria Revolving Loan fund for code and facility upgrades.
Choices Home Care LLP
4
Ringdahl Architects was founded by Paul Ringdahl in 1998 with the goal of providing intelligent community-based design to a broad range of clients. Ringdahl Architects has been committed to excellence and innovation through individualized professional services. Dustin and Shannen Tomoson purchased the business and real estate from Paul and Sally Ringdahl. The AAEDC assisted with the acquisition of the business and real estate with financing through a Developer’s Revolving Loan.
5
Ringdahl Architects Brandon Borgstrom and Shawn Johnson formed this new limited liability company to purchase, own and operate the Peaceful Bliss Assisted Living facility located in Alexandria, MN. The facility is a 31-unit facility with 21 assisted living units and 10 memory care units. Through the AAEDC, in partnership with West Central Initiative, the company was approved for a Developer’s Revolving Loan to assist with the acquisition of Peaceful Bliss Assisted Living.
Alex Assisted Living, LLC
6
AlexMN.org | 7
ECONOMIC DEVELOPMENT Voyager Industries is a privately held company located in Brandon, MN that includes the brands of Voyager Aluminum, Voyager Dock, Titan Deck and Yetti Fish Houses. They recently completed a $2 million expansion of 30,000 square feet of warehouse, distribution & assembly. The AAEDC worked with the City of Brandon and Brandon Township to annex roughly 5.73 acres, and assisted in tax increment financing.
Voyager Industries
7
Reprocessed Plastics Inc. located in the City of Garfield fabricates plastic components and parts for marine, agriculture, building, and many other industries. In addition to components, RPI custom manufactures and has stock plastic sheets. Working with the City of Garfield, the AAEDC assisted packaging a loan with the City of Garfield’s Revolvoing Loan Fund, including the subordination documents and loan amortization for a small addition on their 30,000 square foot facility.
9
FORCE America
8 | www.AlexMN.org
Reprocessed Plastics
8
FORCE America, an employee-owned company, is a leading supplier of systems and components for highway trucks and other mobile markets. In 2000, FORCE America Inc. moved into Alexandria by acquiring VariTech Industries (established in 1994) in an ongoing effort to be the most complete manufacturer and supplier to the snow & ice control market. The AAEDC helped with tax increment financing on their $5 million expansion that is a 64,000 square foot manufacturing facility.
10
12
Enterprise JHS, LLC
Enterprise JHS, LLC, will be acquiring the former JHS property and is working on redeveloping the 44 acres. Under current plans, the former Jefferson High School building and accessory buildings will be removed for new development. The developer has requested tax increment financing from the City of Alexandria to assist with financing of demolition, abatement, site preparation and infrastructure improvements, including water, sanitary sewer, roads, and storm sewer. The project will commence in the spring of 2015.
To create some financial flexibility for the City of Garfield, the LAEDA purchased a maintenance facility, with a lease to purchase agreement with the City of Garfield. The financing for the transaction was provided by Runestone Electrical Association municipal financing loan program, loaning the LAEDA roughly $73,000 to acquire the facility. The benefits of the collaborative financing are two fold: the LAEDA borrows at a very affordable rate, and the City of Garfield lowers its monthly debt obligation and retains its maintenance facility.
Windmill Ponds
City of Garfield
11
The LAEDA supported roughly $5.2 million for Vista Prairie Communities dba Windmill Ponds of Alexandria for an expansion of the existing facility and refinancing of existing debt for the healthcare facility. Industrial revenue bonds are authorized by the State of MN in Chapter 474 of MN Laws and allow Industrial Development Bonds (IDBs) to be tax-exempt securities issued up to $10 million by a governmental entity to provide money for industrial, commercial, and health care development bonds or notes to attract or promote economically sound industry and commerce to the City. Bonds are authorized by local units of government or development agencies. This is a financing program offered for larger projects, which does not affect the local unit’s tax rate. AlexMN.org | 9
WORKFORCE DEVELOPMENT High School Junior Career Exploration
Held on Tuesday, November 25th at Arrowwood Resort & Conference Center, this day long event focuses on assisting local high school students and their parents on the career choices available. Approximately 600 high school juniors were exposed to about 15 career choices, and visited with over 40 local businesses and career representatives in the Career Booth Expo. In addition to the breakout sessions, students were presented a keynote address by Keith Nord, former Minnesota Viking. Keith’s presentation challenged the students to take a fresh look at how they define excellence and how their self worth has been determined. With a new definition of excellence in hand, and a feeling of empowerment Keith inspires attendees to ‘take action,’ the skill that puts people on the path to achieving their dreams. To support career awareness and readiness, the AAEDC is an active member of the Career Exploration Day organizing committee. This event is sponsored by the Runestone Partnership, AAEDC, ATCC and Arrowwood Resort & Conference Center. The local schools attending come from Brandon-Evansville, Minnesaska, Parkers Prairie, and Sauk Centre. In the Fall of 2014 the doors of the Alexandria Area High School opened with an innovative learning program collectively known as the Academies of Alexandria. Recent studies and popular press articles warn us that employers cannot find an adequate supply of workers to meet the demands of the jobs they have: workers may lack the skills, experience, or education needed to adequately carry out job duties. Policymakers and educators in Minnesota are concerned about the deficiencies, and are motivated to ensure that workers’ skills align properly with what’s needed in the labor market. The Academies of Alexandria provide each student with rigorous academics and interactive learning through small personalized learning environments. There will be wall to wall learning through the following four academies: The Freshman Academy, Engineering, Manufacturing Technologies & Natural Resources, Health Sciences & Human Services, and Business, Communication, & Entrepreneurship. The AAEDC collaborates with the district to develop and grow partnerships with the business community of Alexandria and throughout the region. These partnerships bring much needed experience and knowledge into classrooms while reaching beyond the walls of the high school to access the resources necessary to provide students with academic opportunities. 10 | www.AlexMN.org
Alexandria Area Job Fair
The 10th annual Greater Alexandria Job Fair took place on February 5, 2014 at the Alexandria Technical & Community College Law Enforcement Center. The event was a tremendous success with 50 regional companies participating, and over 500 job seekers attending the event to connect with regional employers. Participating companies were from sectors such as direct sales, healthcare, retail and manufacturing. The job fair is organized by West Central MN SHRM- the AAEDC is an active member of this organization and has a major impact on the job fair with business recruitment, event marketing, and event organization activities.
Entrepreneur and Small Business Trainings Partnering with Alexandria Technical & Community College’s Customized Training Center, the AAEDC continued to offer regional small business trainings in 2014.
8
trainings were coordinated through the year with an emphasis being placed on Small Business Customer Service. The total
training impact included 119 unique attendees representing more than 45 businesses that employ a total of more than 2,000 individuals. The ripple effect from training information that was relayed to coworkers by attendees is not accurately measurable beyond these numbers, but could be very large. Partial funding is provided by West Central Initiative. Training offerings included: • 4 Steps to Real Communication • Goal Setting and Action Planning • Advanced Goal Setting and Action Planning • Calming Your Customer
• • • •
Customer Service Excellence True Colors Personality Inventory Generational Differences in the Workplace: How Do We All Work Together? Lean: What the Heck Is It?
The AAEDC has been a member of PMMC for six years - an organization that focuses on providing industry expertise and resources for regional educators, spearheading promotional efforts to increase awareness and appreciation of careers in manufacturing, and financially supporting maufacturing related activities and competitions in local school districts.Their mission is “The Alexandria area will be known
throughout the automated packaging machinery industry as the hub for automation technology and as a community where talented individuals build successful careers with growing companies that are committed to best-in-class performance” PMMC members include: The Aagard Group, Douglas Machine, Massman Automation Designs, and the AAEDC. For additional information, visit www.alexandriapmmc.com
AlexMN.org | 11
COMMUNITY INVOLVEMENT Ecumen Bethany Community was selected as the recipient of the 2014 Business & Industrial Appreciation Day award by the Boards of Directors of the Alexandria Area Economic Development Commission and Alexandria Lakes Area Chamber of Commerce. The Business & Industrial Appreciation Day (BIAD) event has honored a Douglas County company each year since 1984, and is recognized as one of the largest and longest standing annual events of its type in greater Minnesota. Annually, one company from the region is selected as the BIAD recipient based upon the following factors: • • • •
Growth in number of employees; the impact of the business on the job market Increase in sales and/or unit volume; an indication of continued growth Capital Investment; an indication of commitment by the business to increase community capacity Community Contributions; evidence of the business’s investment of time, skills, and resources to assist in community oriented projects
The BIAD luncheon took place on October 21st at the Arrowwood Resort & Conference Center. The event was a celebration of the success, growth, and impact of Ecumen Bethany Community not only in our local area, but statewide as well.
In preparation for the 2014 downtown redesign project, the AAEDC partnered with a number of invested orgnaizations in town to assist in the communications of the downtown project progress. This group has met periodically throughout 2014 to implement the marketing plan set in motion for the project, raised marketing funds, and updated a website to communicate project process. For more information about the 2014 downtown project, visit www.AlexRoadReport.com Partners include Explore Alexandria Tourism, City of Alexandria, Chamber of Commerce, Downtown Merchants, ALP Utilities, and MNDOT.
12 | www.AlexMN.org
INDUSTRIAL PARK LAND AQUISTION
The Lakes Area Economic Development Authority acquired two parcels, totaling 1.87 acres from the Merodie Seykora Trust. The acquisition allows the LAEDA to own a total of 14 contiguous lots in the Alexandria Industrial Park, zoned specifically for light industrial uses. These parcels are available to industrial and commercial companies that are seeking new facilities and/or expansion opportunities in the community. The parcels are desirable to potential companies due to the location and the affordable pricing of the lots. Additionally, this land purchase positions the LAEDA to sell industrial land that is: • Highly visible to Interstate 94 • Free of airport and clear zone restrictions • The last of the undeveloped I-1 zoned property in the City of Alexandria • Potentially low development costs - street, sewer, and water is available on site so no additional costs for infrastructure extension
Additional Events & Partnerships 2014
SPRING LUNCHEON
LENDER’S LUNCHEON
AAHS CAREER FAIRS
MANUFACTURING BREAKFAST
PUBLIC PRESENTATIONS
EMPLOYMENT LAW SEMINAR
LFDC ACTIVE MEMBER
MBFC BOARD MEMBER
JEFFERSON LEGISLATIVE REQUEST AlexMN.org | 13
OTHER NEWS We Moved!!! At the end of 2014, the AAEDC offices made the move a few blocks north to 324 Broadway. In respect to our vision of “the area being a regional center sustaining a vibrant, growing economy...� and our core value of regional collaboration, we have teamed up with Explore Alexandria Tourism, Alexandria Township, and Hometown Planning in a shared office suite. With the intent to recognize and leverage the interrelatedness of the people and businesses in the area, we will work together to support the development efforts that benefit our region and continue to make it attractive to businesses and to a capable, productive workforce.
COMMUNITY GROWTH
The Alexandria area continues to be a vibrant reigonal center. The following projects represents a sampling of commercial development projects in the Alexandria area. Each project has an estimated project cost minimum of $100,000:
Project
Estimated Project Cost
Square Footage
Project Type
Industrial Pfeninger Warehousing
$4,400,000
100,000
New Construction
Government City of Alexandria
$100,540
Alteration
Douglas County
$2,400,000
Alteration
PrimeWest
$1,300,000
47,810
Alteration
87,077
New Construction
Multi Family StoneManor Apartments
$6,739,592
AlexMN.org | 14
COMMUNITY GROWTH Project
Estimated Project Cost
Square Footage
Project Type
Professional and Service Culver’s
$163,700
First American Bank of Alexandria
$100,000
135
Addition
Geyer Rental
$186,180
6000
Addition
Apol’s Harley Davidson
$509,115
10,944
Addition
Juettner Motors
$100,000
2775
Addition
Elden’s
$397,730
10,787
New Construction
Alex RV
$294,168
8,400
New Construction
Aldi
$826,687
17,018
New Construction
Blue Diamond Buick
Alteration
$1,350,000
Alteration
Viking Plaza
$791.335
14,107
New Construction
Viking Plaza
$145,000
1866
Alteration
Arrowwood
$575,169
8512
New Construction
Calvery Lutheran Church
$100,000
Addition
Lake Community Free Church
$100,000
Alteration
ReMax Lakes Area Realty
$145,000
Alteration
School District 206
$113,308
Pemberton Law Office
$350,000
Alteration
Cullen’s Home Center
$125,000
Alteration
Alexandria Area YMCA
$667,780
5725
Addition
Latoka Lodge
$100,153
680
Alteration
Goodwill Store
$1,078,377
20,541
New Construction
15 | www.AlexMN.org
2640
New Construction
CONTACT US
LOCATION 324 Broadway, Suite 101 Alexandria, MN 56308
TELEPHONE 320.763.4545 Phone
WEB Web~ www.AlexMn.org Email~ aaedc@alexmn.org