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EECONOMICCONOMIC DDEVELOPMENTEVELOPMENT AAUTHORITYUTHORITY 2011-2012 Work Plan Approved by EDA Board: May 26, 2011

CCITYITY OFOF NNORTHFIELDORTHFIELD

Community Video

This project was completed in early 2011, and is being used by a

number of organizations in Northfield seeking to market various

aspects of the City. In the fall of 2009, representatives from the

Archer House River Inn/Rebound Enterprises, Carleton College,

Northfield Area Chamber of Commerce and Northfield Area

Convention and Visitors Bureau, Northfield Downtown

Development Corporation, Northfield Historical Society,

Northfield Hospital and Clinics, Northfield Public Schools, and

St. Olaf College met with a sub group of the EDA to discuss

their interest in jointly developing a community video for the

City of Northfield. The group interviewed firms and selected

Blue Moon Productions because they believed the company

could deliver a project to the professional standards that is

expected by the community.

http://ci.northfield.mn.us/assets/e/EDA/northfield_videos.html

Neuger Communications Expansion

Neuger Communications Group has been in operation for over

nine years and continues to demonstrate its commitment to grow

its business headquarters in Northfield as evidenced through

their announcement to move into the former Community

Resource Bank at 25 Bridge Square. The move required a major

renovation of the building, but will allow for the company’s

plans to double their staff over the next couple of years.

Economic Development Newsletter

In 2010, the EDA released its first newsletter highlighting a

number of economic development related projects in the

community. A contact list of real estate professionals,

development firms, and site selectors was purchased from the

Business Journal and combined with a list generated by City

staff. The purpose of the newsletter is to heighten awareness of

community- and economic development-related projects. The

quarterly newsletter is also used as collateral marketing to

prospective businesses.

Funding for the Arts

The EDA passed a motion at its May 26, 2011, Board meeting

approving the funding for the Riverwalk Market Fair, Inc.

(RMF) - $5,000, Riverwalk Arts Quarter, Inc. (RAQ) - $3,000,

NorthfieldArts.Org - $5,000. The Board determined that the

three organizations provide a public purpose and fall under the

scope of work of the EDA. The Board also requested that a letter

of commitment be provided to the Riverwalk Market Fair

organization in order to assist them in their efforts to obtain the

matching funds from the Southern Minnesota Initiative

Foundation (SMIF).

MIF Flood Loans

The City of Northfield was awarded $257,500 from the

Department of Employment and Economic Development

(DEED) on April 22, 2011, to assist local businesses affected by

the September 2010 flood. Eligible businesses were able to

apply for funds to assist with recovery efforts related to building

repair, leasehold improvements, fixtures and equipment, loss of

inventory and cleanup costs. Funds may not be used for

economic injury losses, relocation, debt consolidation, or

moving and operating costs.

Businesses were able to apply for funds up to $50,000, repayable

over 10 years at 0% interest with 50% of their loan forgivable if

the applicant remains in business for 10 years. The other 50% is

retained by the City to be used in a revolving loan program for

other businesses to utilize for expansion and enhancement.

Northfield City Hall 801 Washington Street Northfield MN 55057

Project Funding:

Total Renovation Cost $ 497, 000.00 100%

EDA Loan $ 75,000.00 15%

Applicant’s Funds $ 422,000.00 85%

KKEYEY AACCOMPLISHMENTSCCOMPLISHMENTS IINN 20112011

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INTRODUCTION

The Northfield City Council passed a

motion (M2011-060) at their April 5, 2011, regular

meeting directing the EDA to perform the following task:

In the next 60 days, the EDA Board will:

Provide a report to the City Council detailing specific

actions and accomplishments made by the EDA from

January 2009 to the present, to implement the

economic development goals and strategies outlined

in the City of Northfield’s Comprehensive Economic

Development Plan and Comprehensive Plan.

City Council will complete an assessment of the

economic development goals and strategies referred

to above in the economic development plan 2006,

amend that slate if needed, and identify the strategies

and partnerships needed to achieve these objectives.

The City Council shall then decide whether to retain

the EDA as recommended at the conclusion of the

Clough report.

EDA shall submit a 2011 work plan with an

accompanying budget to the City Council for

approval.

CITY COUNCIL DIRECTION

1. Progress Report on 2006 Comprehensive Economic Development Plan

2. Provide Annual Reports for 2009 & 2010 3. Produce 2011 Economic Development Work Plan 4. Produce 2011-2012 EDA Budget 5. GreenSteps City Gap Analysis

The Economic Development Board submitted a report to

the City Council at their June 7, 2011, Work Session

which included the Progress Report of the 2006 Comp.

Economic Development Plan, Annual Reports for 2009 &

2010, and the EDA’s 2011 Work Plan and Budget.

At the July 5, 2011, City Council meeting members voted

on a motion to retain the EDA and appoint a subcommittee

of the City Council to bring back proposed changes to the

EDA’s enabling resolution and related documents, clarify

the roles and responsibilities of the EDA, and the

implementation of the items outlined in the Clough Report.

The motion also stated that the City Council will identify

the EDA’s strategies and partnerships they believed were

necessary to accomplish the Council’s economic

development priorities as passed on June 21, 2011. The

City Council would then meet jointly with the EDA to

determine a work plan for accomplishing assigned goals.

Additionally, the motion recommended that the Mayor

bring forward candidates to fill the current vacancies on

the EDA Board. This motion passed.

GREENSTEP CITIES

The GreenStep Cities program is a voluntary initiative

sponsored by the MN Pollution Control Agency (MPCA)

to help cities around the state become more efficient and

sustainable with the ultimate goal of cutting greenhouse

gases. The City Council has recognized that this program

fits with the City’s goal of environmental and financial

sustainability. The GreenStep Cities program is meant to

be a community effort with many opportunities for

individuals and local organizations to get involved.

Northfield completed the initial stages to become a Level 1

GreenStep City in 2010. The City is now working to

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become a Level 2 city by completing 8 Best Practices

(required for a "Class A" city in the program). To become

a Level 3 city we must complete 16 Best Practices. On

April 5, 2011, the Northfield City Council adopted

Resolution 2011-041 on implementation method and

motion to direct City Boards and Commissions to work on

the program.

The City Council requests staff and boards and

commissions to:

Incorporate the goals of the GreenSteps Cities program into their work plans;

Recommend local partner groups that could work with the City to pursue specific action steps of the GreenStep Cities program;

Add GreenStep Cities program to the City Council decision matrix;

Apply for a Greencorps volunteer; and Provide quarterly progress reports on GreenStep Cities

implementation.

PARTNER ORGANIZATIONS

The Northfield Economic Development Authority has a

long history of working closely with its partners to

accomplish those initiatives that advance the economic

development goals of the City. These relationships enable

the City to provide businesses with an incredible array of

information and professional services. Access to financial

incentives, assembling developable land, generating

business leads, and creating synergies within the existing

business community all help to facilitate a positive

environment for business growth.

The combination of these exceptional organizations position

the City of Northfield to be the most efficient first point of

contact for persons and businesses hoping to expand, start-

up or relocate in Northfield. In turn, the City of Northfield is

best equipped to manage the development process in a

consistent and sustainable manner that will enhance the

chances of success for both private investors and public

stakeholders.

Recent examples of this exceptional collaboration has led to

the successful completion of the Northfield Community

Brochure, Community Video, Rice County Economic

Impact Analysis, and Retail Trade Analysis Report.

Department of Employment and Economic Development

Rice County Economic Development

Northfield Downtown Development Corporation

Northfield Enterprise Center

Northfield Round Table

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NORTHFIELD CITY COUNCIL Economic Development Priorities

Adopted June 21, 2011

This list represents City Council economic

development priorities intended to provide

information and guidance for the Council, the

Economic Development Authority, and other

boards, commissions, organizations and

constituencies. It is based on input from City

Council members and discussion at a City Council

work session on May 24, 2011.

Strategic Priorities

Retain and grow existing businesses. The most

important economic development priority for

Northfield should be to retain and grow existing

businesses, including not only industrial,

commercial and retail firms but also agriculture,

education and health care. This goal should be

pursued by surveying the needs of local

businesses and employers with regard to land

availability, recruitment and retention of

employees, financial assistance, taxes and other

factors bearing on business decisions about

location, investment and growth. Based on this

survey, the City should develop appropriate

infrastructure, financial incentives, information

and other resources that would enable both

existing and new businesses to succeed and grow

in Northfield.

Actively recruit new businesses. The second most

important priority for Northfield should be to

actively market the City and recruit new

businesses. The greatest emphasis should be to

recruit new businesses that complement existing

businesses; businesses from target industries

identified in the 2006 Comprehensive Economic

Development Plan; businesses that employ highly

talented and creative staff; and small,

entrepreneurial, high-growth businesses.

Maintain and enhance Northfield’s downtown

and its distinctive quality of place. A third

priority for economic development in Northfield

is to maintain and enhance the character and

economic vitality of the downtown, which is a

major contributor to the City’s distinctive quality

POLICY AND PROCEDURES

February 1, 2011 – The City Council met and discussed three options

presented by the Mayor on how they could resolve the issue of

appointments to the EDA.

The City Council agreed to secure the services of a neutral party to

evaluate perceived issues with EDA processes and functions. The

neutral party would conduct personal interviews with members of the

EDA and staff. The neutral party would then report back to the Council

at a work session with findings and recommendations for areas that

need review.

Mr. Thomas Clough of Horizon Associates, Inc. was retained by the

City and asked to evaluate the processes and functions of the EDA.

Since 1989, Mr. Clough has worked as a principal of Horizon

Associates, Inc., a consulting firm that provides planning services for a

broad range of non-profit organizations. Mr. Clough’s work focuses on

strategic, financial, and organizational planning for non-profits,

particularly those that face major challenges in funding their missions.

Mr. Clough outlined the following process and steps in order to prepare

his report to the City Council:

1) Define interview questions and review with City Administrator.

2) Conduct interviews with 18 members of City Council, EDA, City

staff, and HRA.

3) Diagnose perceived issues with EDA process and function and

develop hypotheses about possible improvements.

4) Review diagnosis and possible improvements with City staff, EDA,

and City Council to identify areas of agreement and disagreement.

5) Draft final findings and recommendations.

At its March 22, 2011, work session the City Council received and filed

the report submitted by Tom Clough concerning the Northfield EDA.

On May 26, 2011, the EDA Board approved the 2011-2012 Work Plan

which included implementing the recommendations from the

Evaluation of Northfield Economic Development Authority Process

and Function Final Report, March 31, 2011 (aka, the Clough Report).

The EDA has incorporated the recommendations identified in the

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Clough Report as follows:

Policy and procedures/Clough Report recommendations Develop process for regular meetings with the City Council and Planning

Commission to formulate shared understanding of Northfield’s economic development strategies.

Undertake Mid-term strategic planning process to establish economic development goals.

Coordinate forum to review community-wide economic “dashboard” indicators. Clarify working relationships with funded and unfunded partners to shape

collaborative efforts to achieve the City’s economic strategic plan.

Improve process and cooperation Follow agendas and manage meetings efficiently. Develop policies for conducting meetings, dealing with differences, clarifying the

role of the Executive Committee and other issues. Train EDA members in conducting orderly meetings in compliance with statutes,

bylaws, rules of order and responsibilities of EDA members stated in the handbook.

Appoint EDA members with demonstrated capacity for cooperation, negotiation and compromise.

Evaluate EDA members perceived as problematic and replace those whose conduct is incompatible with the EDA’s effective functioning (inefficiency, neglect of duty, misconduct).

Clarify roles, responsibilities, communications and reporting relationships among City Council, EDA and City staff City Council responsibilities and accountability to the community. EDA responsibilities and accountability to the City Council. Staff responsibility and accountability first to the City Administrator and second to

the EDA. City Council representatives to the EDA.

Develop mechanisms for seeking outside advice and community input Periodic meetings with leaders and experts in all business and community sectors. Conduct periodic community surveys on economic development goals, priorities,

strategies and plans.

Develop clear policies and criteria for evaluating development projects, business subsidies and infrastructure investments Evaluation criteria should reflect mission and goals for economic development.

Policies and evaluation methods should provide guidance on how to set priorities

and allocate resources for economic development. Develop four-year strategic and financial plans for economic development Scope: four year planning horizon; limited strategic objectives; updates every two

years. Match planning period and reviews to City Council election cycle and two-year

budgets.

Establish regular performance evaluations for the EDA Identify objective measures of mission/goals and strategic/financial plans. Supplement with community surveys and interviews with community leaders. Conduct self-evaluations every two years. Solicit City Council review, revision and approval of self-evaluation.

Ensure adequate professional support from City staff and outside consultants Assess capacity and availability of current staff to provide adequate professional

staff support to the EDA.

Use outside consultants and experts to supplement City staff when needed.

of place and life. To accomplish this goal, the City

should develop and market Northfield as a

recreation, tourism, arts and conference destination,

in order to attract visitors and enhance opportunities

for Northfield residents. In doing so, the City

should build on assets like the historic and aesthetic

character of the downtown, the Cannon River, arts

and history programs and events, and local foods

and farmer’s markets.

Encourage graduates of local colleges and other

highly talented and creative people to develop

and grow businesses in Northfield. Northfield is

an especially attractive city for talented, creative

people, including graduates of Carleton and St.

Olaf Colleges, to live and work. The City should

market itself to such people and develop

programs that encourage them to build talent-

based businesses in Northfield.

Organizational Priorities

Broaden participation in economic development.

Economic development is essential to the future

welfare of Northfield and its residents. The City

should develop ways to broaden community input

and participation in economic development. It

should engage leaders from business, education

and health care in developing economic

initiatives. It should organize opportunities for

community input into economic development

goals, strategies and priorities. It should convene

task forces that involve the EDA, other boards

and commissions, businesses and non-

government organizations to carry out economic

development projects. It should increase the

participation of the City Council in formulating

economic development goals and strategies

through regular plans, meetings and reports.

Explore regional economic development

strategies. The City should explore and develop

possibilities for collaboration with surrounding

cities and towns, Rice and Dakota Counties, and

the larger southern metropolitan area in pursuing

economic development initiatives.

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Review policies, procedures and governance documents, as recommended in the Clough Report.

Review/amend/adopt potential changes to Bylaws, Micro Grant, and Land Acquisition Policy.

Revamp a detailed, timely inventory of available properties (Process).

Develop a Request for Proposals for redevelopment of key downtown properties: i.e. Q block, Crossing site, Post Office if appropriate.

Solicit requests for EDA-administered grant and loan funds Revamp business retention plans and programs.

Infill is the construction of new buildings within existing

urban areas on vacant or underutilized parcels of land. It

may be as simple as building a single family home on one

lot in an established neighborhood or as complex as

creating a mixed-use center for offices, housing and retail

on a much larger piece of land. Infill parcels are generally

located in areas with water, sewer, transportation and other

services in place.

Redevelopment is finding new or more intensive uses for

land or buildings within an existing urban area. It may

involve replacing existing structures with new ones or

converting them to new uses. Redevelopment also can

result in a change in use, such as replacing existing homes

with apartments or building a restaurant on a parking lot.

Redevelopment is typically market-driven. It usually

occurs when a developer or community group determines

that a new use for a site will be more profitable or

productive than the current use.

The Economic Development Authority continues to

emphasize the importance of attracting new and expanding

INFILL AND REDEVELOPMENT

businesses to established areas of the community. This

would maximize existing infrastructure while increasing

the commercial and industrial tax base.

The Clough Report suggested, and the EDA Board agreed,

that a review of the EDA’s governing documents and

assistance programs was needed to determine whether

changes were necessary for the EDA to successfully carry-

out the City Council’s and EDA’s economic development

initiatives. Additionally, the EDA Board has identified the

draft Land Acquisition policy as something they desire to

finalize.

The EDA Board has taken the position that since the

genesis of the organization it has served as the lead

economic development agency for the City of Northfield.

As such, the Board believes that it is important to remain

actively involved in potential redevelopment projects (i.e.

Q block, Crossing site, Post Office) in ways that will

advance a positive outcome.

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BUSINESS RETENTION AND EXPANSION

Existing Business Survey Coordinate with Economic Development Partners on regular visits Serve as an Economic Development advocate to businesses –

strengthening local operations

Nationally, 40-80 percent of new business growth is

generated from existing companies. Without fostering an

existing business program, a community's best companies

could be our competitor's best prospects. The purpose of a

business retention and expansion program is to establish

relationships between community businesses and

economic developers to strengthen existing companies,

establish early warning systems to flag at-risk businesses

that require assistance, and ensure that public programs

meet local business needs. Business retention initiatives

usually include a mechanism for linking expanding

businesses with public programs designed to mitigate

growing pains and regulatory issues. Retention programs

involve educating the stakeholders, recognition events,

headquarter calls, periodic surveys, interviews, and

visitations with companies to evaluate the assets and

opportunities.

Many economic development professionals describe the

importance of an existing business survey tool as the

ability to gather strategic information for marketing which

should become a top priority for every development

organization. Internal information resources should create

opportunities and anticipate changes that impact

businesses within a community. The emphasis of the

retention survey instrument should be on capturing three

types of information: customer satisfaction, predictive

information, and marketing research.

Without an effective retention and expansion program,

opportunities will be lost. Increasing the return on

investment from retention and expansion efforts will

enhance the value. The intent is to tap into the knowledge

of area executives cultivating business strategy

information that will identify opportunities for the

community and economic development organizations to

promote or enhance.

Other ways to utilize the results of a survey of Northfield’s

existing employers:

Media releases as to the summary of the survey results and

the organization’s role in the survey program can be

developed.

Public presentations to elected officials as to the survey

results are one means of either continuing or obtaining

media coverage of the survey, especially if the survey

results are particularly newsworthy. Such presentations are

also one means of demonstrating the commitment of the

economic development organization to the business

community and its willingness to represent it. Survey results

can also be used in seeking changes to local policies

identified in the survey as negatively impacting local

businesses.

Incorporate results of the survey into the economic

development organization’s annual report. Also, include

outcomes of the survey into presentations the organization

may be asked to make to civic organizations.

Use survey results to identify possible short-term and long-

term trends the economic development organization can

consider incorporating into its annual business plan. For

instance, other longer term quality of place issues raised in

the survey could be formally communicated to local

governments for incorporation into their planning activities.

Northfield’s EDA and its economic development partners

will jointly conduct a survey of existing employers to

gather information intended to strengthen their operations

in the community.

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May June July

City Council Direction

Progress Report on 2006 Comprehensive Economic Development Plan X

Provide Annual Reports for 2009 & 2010 X

Produce 2011 Economic Development Work Plan X

Produce 2011-2012 EDA Budget X

GreenSteps City Gap Analysis

Policy and Procedures/Clough Report Recommendations

Develop process for regular meetings with the City Council and Planning Commission to formulate shared understanding of Northfield’s economic development strategies.

X

Undertake Mid-term strategic planning process to establish economic development goals.

Coordinate forum to review community-wide economic “dashboard” indicators.

Clarify working relationships with funded and unfunded partners to shape collaborative efforts to achieve the City’s economic strategic plan.

X

Review policies, procedures and governance documents, as recommended in the Clough Report. Review/amend/adopt potential changes to Bylaws, Micro Grant, and Land Acquisition Policy.

Infill and Redevelopment

Revamp a detailed timely inventory of available properties (Process). X

Develop a Request for Proposals for redevelopment of key downtown properties: i.e. Q block, Crossing site, Post Office, if appropriate.

Solicit requests for EDA-administered grant and loan funds. X

Revamp business retention plans and programs.

Business Retention and Expansion

Existing Business Survey.

Coordinate with Economic Development Partners on regular visits. X

Serve as an Economic Development advocate to businesses – strengthening local operations. X

Business Park Master Concept Plan

Follow City Council direction on the use of Business Park Master Concept Plan.

Formally adopt Bus. Park Master Concept Plan & follow-up with land owners regarding next steps.

Identify potential State & Federal financing for business park.

Communications and Marketing

Produce quarterly newsletters and other publications highlighting business opportunities in Northfield and provide follow-up to Community Video

X

Develop and produce a “Get to Know Northfield” developer and site selector forum promoting infill redevelopment and greenfield development in the new business park.

Engage colleges and large employers in collaborative effort to attract new businesses and redevelopment to Northfield – Leverage Alumni.

Continue to provide tools and resource materials for employers and others to use to promote Northfield – on going.

X

City Council Economic Development Priority

CCEDP

CCEDP

CCEDP

CCEDP

CCEDP

CCEDP

CCEDP

CCEDP

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2011 –2012 Approved by EDA Board, May 26, 2011

August September October November December Responsibility

EDA/staff

EDA/staff

EDA/staff

EDA/staff

EDA/staff

EDA/staff, Council

X EDA/staff, Council

X EDA/staff, consultant (?)

EDA/staff, , Chamber, NDDC, NEC, Colleges

X EDA/staff

EDA, Chamber, NDDC, Realtors

X EDA/staff

EDA/staff, NDDC, NEC

X EDA/staff, NDDC, NEC, Chamber

X EDA/staff

EDA/staff, NDDC, NEC, Chamber

Council

EDA, Council

EDA/staff

X X EDA/staff

X EDA/staff, NDDC, Chamber

EDA/staff, Chamber

EDA/staff,

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DEBTOR STATUS REMAINING

BALANCE DATE OF

MATURITY

SKETCHY ARTIST Current 7,420.42 December 14, 2014

ALETON, LLC Current 33,870.05 August 16, 2020

JB ENTERPRISES Current 3,239.44 September 29, 2014

NORTHFIELD DEV. - MEDICAL ARTS Current 3,984.01 December 18, 2013

NEW DIVISION DEVELOPMENT Current 64,414.65 October 9, 2023

BUTLER'S INC. Late 13,841.55 September 24, 2014

COCOA BEAN - SEELEY Current 2,731.88 June 14, 2012

ID INSIGHT - FORGIVABLE LOAN Current 50,000.00 December 31, 2011

JEKKEL LTD Current 44,703.81 February 12, 2013

R FAMILY FOODS Late 43,832.94 August 15, 2023

NEUGER COMMUNICATION Current 73,939.04 July 29, 2021

STRATAPOINT Current 30,967.95 September 3, 2014

2010 FLOOD LOANS

*AESCENDANT ACCESSORIES 1,100.00 October 29, 2012

*CHAPATI, INC 8,600.00 October 15, 2012

*FROGGY BOTTOMS 20,000.00 October 15, 2012

*HVISTENDAHL, MOERSCH, DORSEY 20,000.00 December 23, 2012

*JEKKL LTD 18,100.00 October 8, 2012

*LARSON'S PRINTING 20,000.00 October 8, 2012

*MANAWA LLC 13,791.45 October 15, 2012

*WEST BANK PROPERTIES 20,000.00 October 15, 2012

TOTALS 566,345.19

*24 MONTH BALLOON LOAN W/PRINCIPAL & 1.5% INTEREST DUE

Balance available to lend 83,004.81

EDA LOAN PORTFOLIO SEPTEMBER 2011

As of September 30, 2011

Origin of Loan Funds The funds used to capitalize the Downtown Revolving Loan originated from the $500,000 sale of the city owned property referred to as “ The Crossings”. The Economic Development Authority dedicated these funds to benefit economic development projects located strictly in Northfield’s Downtown Business District. In 2010, the EDA purchased the StrataPoint and the R Family Foods loans from the Master Development fund. The EDA purchased those loans in order to provide liquidity to the Master Development Fund as it is scheduled to expire in 2013.

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Actual 2009

Actual 2010

Approved 2011

Requested 2012

Requested 2013

REVENUES Levy $ 225,035 $ 235,664 $ 248,952 $ 221,834 $ 221,834 Market Value Credit 10,582 11,716 - - - Loan Payments 37,558 37,558 40,000 40,000 Interest from Loans 58,731 9,372 11,000 11,000 11,000 Interest Income 33,561 22,700 21,680 21,680

Misc. Income 20,500

Subtotal $ 294,348 $ 348,370 $ 320,210 $ 294,514 $ 294,514 OPERATING EXPENSES

Personnel {b} $ 55,407 $ 99,272 $ 60,177 $ 81,233 $ 84,856 Supplies 900 442 5,000 500 500 Consulting 13,703 - 5,000 5,000 3,497 Legal 4,179 11,116 5,000 9,120 7,000 Auditing & Accounting 648 1,153 2,000 2,000 2,000 Data Processing 400 490 3,000 400 400 Telephone 196 287 500 500 500 Travel & Training Expenses 1,510 2,305 4,000 4,000 4,000 Dues & Membership 452 165 4,000 500 500 Insurance - - 2,764 2,764 2,764 Transfer Out - IT Support 2,640 2,640 2,640 2,640 2,640 Administrative Charges - - - 8,808 8,808

Subtotal $ (80,035) $ (117,870) $ (94,081) $ (117,465) $ (117,465) Programs

Promotional Advertising $ - $ 41,007 $ 15,000 $ - - Development Loans 20,000 121,592 - - - Loans transfer from Muni Dist. #4 - 86,099 - - - Unallocated {c} - - 51,049 51,049 Alumni Outreach - - - - Marketing Brochure 6,140 - - - - Holland, MI 3,884 - - - - Business Park 91,756 158,339 - - - Riverwalk Arts Quarter 7,500 - - - - Business Recruitment & Marketing - - 77,600 - - Infill & Redevelopment {d} - - 200,000 - - Other 11,907 2,405 - - - Micro Grant 13,750 20,182 25,000 25,000 25,000

Subtotal $ (154,937) $ (429,624) $ (317,600) $ (76,049) $ (76,049)

Partner Support {e} $ (108,350) $ (90,000) $ (110,000) $ (50,000) $ (50,000)

Total Operating Expenses $ (343,322) $ (637,494) $ (521,681) $ (243,514) $ (243,514) Less Revenue $ 243,514 $ 243,514

Total $ (48,974) $ (289,124) $ (201,471) $ - $ - Appropriated Fund Balance $ 238,823

Fund Balance January 1: Primary $ 1,375,149 $ 987,194 $ 732,649 $ 783,649 $ 783,649

Loan Reserve 49,856 $ 98,414 $ 149,414 $ 200,414

Fund Balance December 31 $ 1,326,174 $ 1,037,050 $ 831,063 $ 933,063 $ 984,063

{a} Includes investment earnings & interest payments, loan principal has been excluded in years 2011-2013 {b} Community Development Director 60%, Housing Manager 15%, Adm. Assistant 5% {c} Produce quarterly newsletters and other publications highlighting business opportunities in Northfield; provide follow-up to

Community Video; Develop and produce a "Get to Know Northfield" forum for developers and site selectors to promote infill redevelopment and green field development in the new business park; Engage colleges and large employers in collaborative effort to attract new businesses and redevelopment to Northfield; Leverage Alumni to continue to provide tools and resource materials for employers and other to use to promote Northfield - on going.

{d} Budgeted but not assigned to specific project in 2011 {e} Budgeted amount for partner organizations NEC, NDDC, & SMIF including the Arts and Cultural funding for 2011

NORTHFIELD ECONOMIC DEVELOPMENT AUTHORITY BUDGET

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Produce quarterly newsletters and other publications highlighting business opportunities in Northfield and provide follow-up to community video.

Develop and produce a “Get to Know Northfield” developer and site selector forum promoting infill redevelopment and greenfield development in the new business park.

Engage colleges and large employers in collaborative effort to attract new businesses and redevelopment to Northfield – Leverage Alumni.

Continue to provide tools and resource materials for employers and others to use to promote Northfield – on going.

The Economic Development Authority has received

positive feedback from the organizations and companies

that have utilized the City’s collateral marketing pieces.

The EDA has exhausted its supply of the community

brochure it developed in 2010 and will update and reprint

the brochure in 2011. The brochure has been used to solicit

new businesses and recruit new professionals to the

community by both colleges and local industry. The EDA

will also continue its quarterly newsletter which highlights

the community and its businesses.

A quarterly newsletter can serve a number of purposes for

an economic development agency. It can be used to inform

businesses, site selectors, realtors, and developers of

the economic development initiatives underway in the

community (new or expanding business operations).

A newsletter may also assist the community to convey

a particular message or brand for the community.

Stories about local business successes will promote

the EDA as an effective organization and promote the

community as a business-friendly place to operate a

business.

The colleges provide a steady stream of talent to the

community. Collectively, they enroll nearly 5,000

students who are considered among the nation’s best

and brightest. The growing relationship of higher

education to economic development and the opportunity

presented by the graduates of St. Olaf and Carleton

Colleges make the attraction and retention of alumni a

promising strategy for developing Northfield’s talent base.

The EDA endeavors to look for ways to collaborate with

St. Olaf and Carleton Colleges to reintroduce their Alumni

to the community and remind them of the virtues of raising

a family or starting a business in Northfield. The

Comprehensive Economic Development Plan suggests

doing this in the following ways:

Mail and e-mail campaign. Create letters, direct mail

materials, and website linkages aimed at increasing

alumni’s awareness of opportunities and advantages of

living in Northfield.

Alumni publications. Use these publications to

communicate with alumni by: 1) drafting articles on

topics of interest to the alumni (as complements to

mail and e-mail campaigns); 2) placing

advertisements.

Events. Ensure that relevant events are marketed to

area alumni. Encourage St. Olaf and Carleton College

alums already in the community to assist in this effort.

COMMUNICATIONS AND MARKETING

13

Follow City Council direction on the use of the Business Park Master Concept Plan.

Formally adopt Business Park Master Concept Plan and follow-up with land owners regarding next steps.

Identify potential State/Fed financing for Business Park .

The Northfield Business and Industrial Park Master Plan

process was conducted to develop a vision for the

expansion of commercial business development within the

City based upon recommendations originating in the City’s

Comprehensive Plan and Economic Development Plan.

The 2006 Northfield Comprehensive Economic

Development Plan identified a lack of industrial space and

land resources to accommodate future business expansion

within the City limits and recommended the City initiate

the several strategies to diversify the City’s economic

base. These strategies formed the foundation of the master

plan:

Make land available for business expansion,

Identify preferred development sites,

Develop a plan for future business and industrial growth,

Develop marketing and recruitment strategy,

Concentrate on the needs of existing businesses,

Maintain Northfield’s quality of place,

Maintain and enhance the existing downtown,

Attract and retain talent,

Increase range of housing options,

Create entrepreneurial and innovative startup opportunities, and

Take steps to integrate City’s growing Hispanic/Latino population.

As a result of the recommendations proposed in the

Comprehensive Economic Development Plan, the City of

Northfield identified the need to annex additional lands

into the City for future business and industrial growth

along with the need to develop a plan and guidelines for

each parcel of land. In 2009, the City annexed

BUSINESS PARK MASTER CONCEPT

approximately 530 acres of land from Greenvale Township

to accommodate future business and industrial growth.

Subsequently, the Northfield Economic Development

Authority initiated a master planning process and created a

Steering Committee. The Committee met over a period of

12 months.

The City Council expressed some concern about a few

items and requested that the Planning Commission review

those items and report back to the City Council for final

consideration. The Planning Commission completed their

review on April 21, 2011, and forwarded recommended

changes to the City Council for final consideration. The

City Council has not taken further action on the Business

Park Master Plan.

The EDA Board is prepared to serve in whatever capacity

the City Council deems appropriate and desires to have the

plan formally adopted.

14

OTHER 2011 ECONOMIC DEVELOPMENT CITY STAFF

City staff worked with Council members Buckheit and

Nakasian to develop a request for proposal (RFP) for the

redevelopment of City property located on Water Street.

In July the Northfield Area Family YMCA submitted a

proposal for the construction of a new facility that is

approximately 46,000 square feet in size. The facility will

include the following amenities: indoor family/

recreational pool, gymnasium, family adventure center,

multipurpose studios for classes and group functions,

indoor walking/jogging track, child care area, and wellness

studio. The facility is a two-story building located near the

corner of Jefferson Road and Honeylocust Drive. This

project involved replatting an outlot as a single lot through

a minor subdivision. The proposed YMCA facility was

interpreted to be included with the use of Public and Semi-

public buildings that is listed as a conditional use in this

zone.

NORTHFIELD AREA YMCA

The YMCA is a locally owned non-profit public charity.

Their mission is to build strong kids, families, and

community. The YMCA is governed by a volunteer board

of directors and has numerous volunteers that contribute to

the organization. It is anticipated that the YMCA will

employ 5-10 full time employees and approximately 125

part time employees. Hours of operation will generally be

Monday through Friday, 5:30 am-9:30 pm, Saturday 7:00

am-9:00 pm, and Sunday 10:00 am-6:00 pm.

WATER STREET REDEVELOPMENT The City received development proposals from the owners

of Froggy Bottoms (David Hvistendahl) and the owners of

Basil’s Pizza (Theologia Pitsavas). Each proposal

provided a comprehensive plan for the properties, although

the proposals were vastly different in their approach.

Froggy Bottoms proposes to reuse the existing properties

with upgrades and rehabilitation to the front façade and

back deck. The proposal from Basil’s opts instead to

demolish the existing properties and rebuild a structure

adjoining their current building, including an eight foot

public access to the Riverwalk.

To provide a comprehensive yet impartial evaluation of

each proposal, City staff used the language in the RFP to

determine how or if each proposal addressed the

requirements. Staff identified 15 items the RFP addressed

15

and used those as a basis to determine how or if each

proposal addressed those items. This allowed staff to

identify the strengths within each proposal, and identify

challenges that are present with each plan.

Each proposal has definite strong points and clearly

identifies their vision for redevelopment and future

Over the last couple of decades Carleton College has

acquired property near its campus that has been converted

into various campus uses. As the result of these property

acquisitions, the College has identified the property on the

CARLETON COLLEGE PARKING

SAVE THE NORTHFIELD DEPOT

NE corner of Union and 2nd Street to address parking

demand. The property is located in an area referred to as

the College Development Zone, a zoning classification

that provides guidance for development transitioning from

College uses to residential neighborhoods. The College

held a number of meetings with representatives of the

neighborhood association to provide and receive input

about the project and respond to potential concerns. In

September City staff approved a site plan for the

development of a parking lot that is functional yet

aesthetically pleasing to neighboring properties.

successes for the West Bank businesses. The City Council

reviewed the two proposals and made a determination that

the proposal submitted by the Pitsavas family more

accurately represented their vision of redevelopment on

the City owned property.

On July 5, 2011, the Northfield City Council passed a

motion officially supporting the relocation and restoration

of the historic Northfield depot to the City’s property

located between 2nd and 3rd Street west commonly

referred to as the “Q-block”. Additionally, the City

accepted the financial responsibility for expenses

associated with development of a survey, legal description,

Phase I environmental assessment, and any legal or

consultant work associated with purchase of the property

in an amount not to exceed $11,000. City staff is currently

working through the terms associated with the purchase

and development agreement with representatives of the

Save the Northfield Depot.

16 Tel 507.645.3018 Email Jody.Gunderson@ci.northfield.mn.us

Ms. Jenelle Teppen, President

Appointment Expires: 12/31/2012

Mr. Steve Engler, Vice President

Appointment Expires: 12/31/2011

Ms. Rhonda Pownell, Secretary/Treasurer

City Council Representative

Appointment Expires: 12/31/2012

Mr. Jack Hoschouer

Appointment Expires: 12/31/2015

Vacant

City Council Representative

Vacant

Appointment Expires: 12/31/2013

Vacant

Appointment Expires: 12/31/2014

NORTHFIELD ECONOMIC DEVELOPMENT AUTHORITY BOARD MEMBERS

TOP 2011—2012 PRIORITIES

Northfield GreenSteps Initiatives

The GreenStep Cities program is meant to be a community

effort with many opportunities for individuals and local

organizations to get involved.

The City Council requests staff and boards and

commissions to incorporate the goals of the GreenStep

Cities program into their work plans.

Economic & Community Development

Benchmarks & Community Engagement

Green Business Development

Renewable Energy

Local Food Business Synergies

Leverage Alumni & Local Businesses

The City views the Colleges and its Alumni as

potentially one of the best economic development

resources for attracting and retaining business to the

City of Northfield. The same can be said of the

existing businesses that are located in the community.

The EDA will continue to identify opportunities to

engage the Alumni from Carleton and St. Olaf

Colleges and existing Northfield businesses to

advance their economic development initiatives.

Additional Funding 2012 & 2013: $20,000

Economic Dashboard Indicators

In order for the community to accurately project and

react to certain economic conditions, it needs to have

a system in place for the collection of data over an

extended period of time. The EDA and its economic

development partners will develop an Economic

Dashboard Indicator which will track such things as:

unemployment figures, retail sales, job growth,

median household incomes, etc.

Additional Funding 2012: $10,000

Communications & Marketing Communities market to achieve multiple economic

development objectives, including: attraction, retention,

and expansion of businesses; attraction and retention of

residents and tourists; improvement of the community's

image locally, nationally, and internationally. Over the last

couple of years, the EDA has produced a quarterly

newsletter that is used to reach a broad audience.

Additionally, the EDA will be utilizing other methods to

communicate the economic development virtues of the

community.

Additional Funding 2012: $10,000