Annual Report 2016 | Alexandria Area Economic Development Commission

ANNUAL REPORT 2016

Mark Grandgenett

Jeff Patience

Deena Steffl

Tom Wacholz

Lake Mary Township

City of Alexandria

LaGrand Township

City of Alexandria

2016 Board Members

Kevin Gorghuber

Mary New

Paul Nelson

Mark Watkins

Carlos Township

Hudson Township

City of Alexandria

Alexandria Township

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

In 1990, the Commission was created to provide economic growth and stability by supporting existing businesses, or by attracting new industry, while ensuring the protection of our natural resources and quality of life. Twenty-six years later, our organization continues to forge ahead, doing more with less and meeting the demands of our communities and businesses, all while staying focused on and achieving our mission.

We continue to lead initiatives

that focus on economic, community, and workforce development.

This ensures a strong connection with our businesses that leverages private investment, but it also creates a bond with our elected officials, which fosters public investment through economic development incentives and community infrastructure.

Welcome to 2017 Nicole Fernholz Executive Director Alexandria Area EDC

We are extremely proud of our accomplishments over the past year, and we look forward to continuing our work; partnering with businesses throughout the region in creating and retaining jobs and investments in our communities in 2017. Our success represents the work of many people throughout our area. The interest, participation and support from our business leaders and elected official were essential to the success of this organization.

I also want to thank the Commission’s Board of Directors that volunteer to serve this fine organization. While much of their work does not get the recognition they deserve, they continue to play a critical role in supporting and encouraging our aspirations. Through this support, I am very proud of organization’s work to promote and strengthen our community in many facets.

On behalf of this organization, I present to you the Annual Report for the Alexandria Area Economic Development Commission. Inside this report, I hope you will recognize and value the important bridge that the Commission has built between our public and private institutions.

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who we are, and our future plans 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 attractive to businesses and to a capable, productive workforce.

Core Values • Stewardship | Provide leadership for an actionorientated 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 and 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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Growing in 2017 • Strategy #1 | Lead initiatives to support the retention, attraction and growth of quality jobs in the Alexandria area.

• Strategy #2 | Work together with community partners to ensure that the Alexandria area develops, attracts and retains a workforce that meets the needs of area employers.

• Strategy #3 | Engage with public and private partners to stimulate development of land, housing, infrastructure and community amenities needed to accommodate economic growth in the area.

• Strategy #4 | Maintain strong organizational capacity to provide economic development leadership in the area and execute the organization’s strategic plan.

Lakes Area Economic Development Authority The AAEDC works in partnership with the Lakes Area Economic 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.

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

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).

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 Acquisition and sale of real estate and person property Participation in limited partnerships

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Economic Development, 2016 Projects

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Holiday Inn Express

Lakewood Terrace

Unique Opportunities, LLC

Lakes Hotel Group, LLC plans to construct a Holiday Inn Express Hotel on South Hwy 29. The project will consist of the new facility construction and the extension and widening of the road, water, sanitary sewer and storm water.

The facility will be a 52,000 square foot, four story, 82 room hotel that will increase the market value of the property to roughly $6,815,800.

Total project costs are estimated at $9.6 million. The AAEDC assisted with the project by facilitating an eight year tax abatement from the City of Alexandria. The company will be required to created 10 new FTE positions as part of the agreement.

To help with the need for affordable housing in the City of Alexandria, the creation of a tax increment financing district was requested from Lakewood Terrace, LLC. The company plans to construct a 18 unit, 25,000 square foot condominium building. The project is located at 3703 South Broadway, Alexandria.

The total project cost is estimated at $3,000,000. This is a housing TIF district that will require residents’ income to be limited for the life of the District. The City of Alexandria also enforces rent restrictions on those units. The income and rent limitations follow the guidelines set

by HUD. At least 20% of the units must be affordable at 50% of median income. 4 units apply for this project.

A multi-family apartment building consisting of 36 units that will include one bedroom, two bedroom and efficiency rental units located on Rosewood Lane requested financial assistance from the City of Alexandria through the creation of a tax increment financing district.

The project will increase the market value of the property to roughly $2,526,000. This is a housing TIF district that will require residents’ income to be limited for the life of the District. The City of Alexandria also enforces rent restrictions on those units. The income and rent limitations follow the guidelines set

by HUD. At least 20% of the units must be affordable at 50% of median income. 8 units apply for this project.

executive express Loghouse Enterprises dba Executive Express(EE) specializes in passenger transportation to and from the Minneapolis/St. Paul International Airport (MSP). The growth in the Alexandria market has been strong and the city is a major hub of airport shuttle runs, and this growth required them to build their own facility. The AAEDC assisted with their expansion by providing $50,000 in gap financing from the Developer’s loan fund.

sale of LAeda industrial land The Lakes Area Economic Development Authority negotiated and approved the sale on Nevada Street in the industrial park. The developer will construct a 5,000 square foot warehousing facility. The proceeds from the sale of the property will be used to further develop the existing property the LAEDA has for sale.

Bello Cucina A new restaurant in the City of Alexandria remodeled the former Old Broadway restaurant that had sat vacant for a number of years. The company requested financial assistance to aid in startup costs. The AAEDC assisted the project with a $50,000 loan from the Developer’s Revolving Loan Fund.

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Community and workforce Development

Academies of Alexandria The Alexandria Area High School (AAHS) and AAEDC were busy in 2016 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 1,688 hours were volunteered in 2016 with 977 interactions.

AAHS joined the Center of Advanced Professional Studies (CAPS) network, providing senior level students with profession -based learning and professional skills development. CAPS is a nationally recognized, innovative high school program. Students taking a CAPS course within one of the three AAHS Academies is fully immersed into a professional culture and mentored by actual employers.

The partnerships throughout the community continue to show their overwhelming support for the future workforce.

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Abby Strom Community & Workforce Development Coordinator Alexandria Area EDC

Entrepreneur and Small Business Trainings

Alexandria Area Job Fair

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. We were very pleased with the number of classes and attendees this year; 13 different classes were held throughout the spring and fall, approximately 27 different businesses were touched and an astounding 449 people attended*.

The annual Alexandria Area Job Fair was held February 3, 2016 at Alexandria Area Technical & Community College (ATCC) Law Enforcement Gym. There was great turnout by both participating companies as well as area job seekers; 50 companies occupied a booth and over 425 ATCC students and job seekers attended. The job fair is organized by West Central MN SRHM – the Alexandria Area Economic Development Commission (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

Training offerings included: • • • • • • • •

• • • • •

Maintaining Positive Workplace Attitudes with People Reading Skills Motivating Unmotivated People with Talent Testing Delivering Excellent Customer Service The Fun Factor! Using Fun and Creativity to Boost Team Productivity Weathering the Storm – Paul Douglas Employment Law Update Bridging Generational Trends Getting Started: Filing with the State, Taxes & Operating Agreements and Growing Pains: Employment Law Every New Business Owner Needs to Know Financing & Incentive Options Site Selection & Marketing Your Business How to Become a Respected Leader Rapid Conflict Resolution Skills Effective Social Media Strategies to Grow Your Business

*Please note that the 449 is duplicated headcount; meaning several of the same people attended multiple sessions.

Community Job Fairs The AAEDC launched a new campaign in 2016 called Living Alexandria Area with anticipation of attracting the much-needed workforce to our area. As part of this campaign we plan to attend multiple Job/Internship fairs at colleges around Minnesota and surrounding states. The first job fair we attended was at the University of Minnesota Duluth (UMD). The Douglas County Hospital joined us as we promoted living in the Alexandria Area. We will be attending more fairs in the upcoming year joined by multiple Alexandria businesses. We are excited to get this going and represent this area.

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Marketing and 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 Bushwood LLC Prime West Health Alexandria Industries

Type

Size

Cost

commercial shed

3,840

$172,800

remodel - dentist office

$189,640

remodel - new clinic

1,963

$220,000

new construction - storage building

8,800

$225,000.00

Executive Express

new construction

5,624

$226,410.08

Kyle Bettin

commercial shed

5,300

$238,500.00

Derek & Amy Revering

commercial shed

5,300

$238,500.00

KBJ Investment Partnership

Perkin's Frito Lay Douglas County Hospital McDonald's - South Hwy 29 Alex RV Boulder Tap House 3M Hud-Hens LLC

remodel new construction - warehouse

$250,000.00 6,000

$256,761.20

remodel - third floor

$300,000.00

remodel - exterior & interior

$325,000.00

new construction - storage building

11,200

$392,224.00

new construction

7,905

$656,929.50

addition/alteration

$700,000.00

commercial shed

17,280

$777,600.00

commerical

18,116

$815,220.00

new construction

17,861

$830,940.24

school

10,840

$1,129,636.40

new construction

4,344

$1,200,000.00

Lakewood Terrace

new construction - 18 unit apartments

25,259

$2,197,857.23

Unique Construction

new construction - 36 unit apartments

25,833

$2,211,304.80

new construction - 2 story bank

18,400

$4,200,000.00

new construction - 80 unit hotel w/ pool

50,061

$5,448,612.00

expansion - surgery wing

7,682

$10,434,000.00

Williamson Properties LLC West Central Sanitation NorthStar Christian Academy Casey's Retail Company

Viking Bank Fairfield Inn & Suites Douglas County Hospital

Community Involvement • Spring SBA Luncheon | To celebrate Small Business Week the AAEDC in partnership with the Alexandria Technical and Community College invited community members to learn about weathering the storm of business and growing their entrepreneurial habits with speaker Paul Douglas.

• West Central MN Employment Law Update | The 13th update provided employment law breakout sessions by lawyers from around the state, and a presentation from speaker Dave Cornell on “3 Courageous Steps to a Productive, Passionate and Engaged Life!”

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• Minnesota Manufacturing Week | October 2-8 to give awareness and a thank you to our area manufacturing and support industries the AAEDC held a breakfast with speaker Joan Schatz sharing her knowledge on “Don’t Fight the Whitewater: Leadership Lessons from Turbulent Times.” Then in partnership with area manufacturers we offered a “Tour of Manufacturing” allowing community members to get inside area manufacturing plants and see possible opportunities.

• Business & Industrial Appreciation Day | Carlos Creek Winery was the 2016 BIAD recipient awarded in October by the AAEDC & ALA Chamber of Commerce. The event was a celebration of the success, growth and impact of Carlos Creek Winery on our local and statewide economy.

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390

BIAD Attendees

145% h Facebook Likes Over 2016

Get social with #LivingAlexArea

Over

23,000 People Reached with Top Post

samantha graf Marketing Coordinator Alexandria Area EDC

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