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Home My WebLink About5.b. MN Marketing Partnership EXECUTIVE SUMMARY Port Authority Meeting Date: September 18, 2018 AGENDA ITEM: MN Marketing Partnership AGENDA SECTION: New Business PREPARED BY: Kim Lindquist, Deputy Director AGENDA NO. 5.b. ATTACHMENTS: PowerPoint APPROVED BY: LJM RECOMMENDED ACTION: Information Item ISSUE Last month staff participated in a FAM tour as part of our membership in the Minnesota Marketing Partnership. In previous years the group had hosted FAM tours in MN and flew site selectors to various portions of the State to become familiar with what MN has to offer. This year the thought was to go where the site selector and real estate folks are, making it more convenient for them and providing opportunities to meet with more people. The participation from the Partnership was overwhelming so each attendee was able to meet with 3 consultants and also meet with many of the consultants at various activities over the 3 days. I was fortunate to meet with representatives from CBRE, Newmark Knight Frank and KPMG. They were all somewhat familiar with MN and the Twin Cities and they had all worked, or their firm worked on projects in the area. The consultant from Newmark is currently working on a project that is considering one of the sites in Rosemount as part of their due diligence. The objective of the tour is to familiarize the consultants with MN and what the State and communities have to offer. To that end, there was a PowerPoint created by DEED that gave an overview of the State. That information is provided for your information. RECOMMENDATION Information Item MINNESOTA MARKETING PARTNERSHIP & MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT AUGUST 21-24, 2018 DEED + 54 Partners = Minnesota Marketing Partnership •In 2002, DEED, EDO’s, Utilities, Private Sector came together to form “Positively Minnesota”, now known as the Minnesota Marketing Partnership; a dues paying consortium of 54 organizations (129 individual members) as of 2018 •This partnership creates a mechanism to leverage combined resources to: –promote Minnesota –change perceptions, –highlight the assets of Minnesota Business Attraction and Expansion •We (MN DEED) are actively working on ~100 projects at any given time (121 proj. –5 year high; 77 proj.–5 year low) •Our pipeline consists of 47 metro Twin Cities projects and 54 projects in Greater MN (as of August ‘18) •40% are new to MN, 60% are expansions-existing MN ops, consolidations, relocations, or a mixed scenario •5% of leads/projects are FDI related •10 acres –400 acres (current range of greenfield client needs), investments from $1M -$800M, 5 jobs to 500 jobs •About 15% of current projects are represented by consulting professionals/firms Business Attraction and Expansion •Recent leads/projects examples include: –Data centers (mostly within one hour of Twin Cities) –Aerospace design/assembly (Twin Cities/Duluth) –Food processing (Statewide) –Customer care facility/call center (urban and micro-urban settings) –Two bio-energy projects (rural and northern MN) –Organic/aquaponics/hydroponic growing facilities (statewide) –Medical device design and manufacturing (mostly Twin Cities and Rochester area) –Composite materials (SE Minnesota) Examples of large projects for 2017-2018 •Post Brands expansion in Northfield -$90M, added capacity for cereal production. Competed against NC operations •Digi-Key expansion in Thief River Falls -$200M, added 300 jobs (additional phases expected), wholesale electronics parts distribution, competed against ND/SD •Prime Therapeutics –new headquarters expansion in Eagan –added 225 jobs and invested $50M, pharmacy services, competed against FL and TX •Uponor expansion in Hutchinson-added 140 jobs and invested $60M, expansion of pex tubing production (new plant) •Daikin Applied America expanding new facility in Faribault, adding 132 jobs and investing $66M for new commercial HVAC products, competed against TX and Mexico (new plant) Announced Projects for 2017-2018 New Jobs Location Business 5 Zimmerman Reliant Systems, Inc. 7 Barnesville Stoneridge Software, LLC 8 Faribault Steinair 10 Rosemount Spectro Alloys Corporation 10 Eagan Medical Equipment Solutions 10 Paynesville Stang Precision 10 Hibbing L&M Radiator, Inc. 10 Rainier Cantilever Bridge Distillery 11 Norward Yg. America Vickerman Company 12 Luverne Midwest Dry Cast 13 Grand Rapids ASV Holdings, Inc. 14 Delano Pizzey Ingredients USA, LLC 15 Rochester Kerry Biofunctional Ingredients, Inc. 15 Monticello Bondhus Corportation 15 Glenwood Clyde Machines, Inc. 20 Rogers Access Point Technologies, EP 20 St. Cloud Geringhoff Corporation 20 Wannamingo Maple Island, Inc. 21 Cottage Grove CMC Enterprises Inc. (Modern Auto) 22 Rochester Pace Electronics, Inc. 26 Princeton Crystal Cabinet Works, Inc. 27 Turtle River Stittsworth Smokehouse 30 Blaine General Pattern Co. 30 Princeton Crystal Cabinet Works, Inc. 34 Albert Lea Mortarr, LLC 35 Chaska Jabil, Inc. 43 New Hope Safco Products Co. 50 Oakdale Optimize Social Media, Inc. 50 Maple Grove Caisson Interventional, LLC 80 Chanhassen Rosemount, Inc. 91 Stewartville Geotek 100 Duluth Altec Industries, Inc. 132 Faribault Daikin Applied Americas, Inc. 139 Brooklyn Park Proto Labs, Inc. 140 Hutchinson Uponor, Inc. 150 Plymouth Energy Management Collaborative 156 Cambridge Stars Hollow Company 165 Bemidji Stratocor/Delta Dental 173 Maple Grove Illume Holding Company, LLC 229 St. Louis Park Concur Technologies, Inc. (SAP) 305 Thief River Falls Digi-Key •Over 7,000 new jobs announced •Over $3.2 billion invested in MN, including $200M in data center projects •Sampling (to the left) of projects of various industries, locations, employment Shovel Ready Certified Sites •DEED’s Shovel Ready program has 33 certified sites across MN from 10 -275 acres •11 participating communities experienced development in their parks in 2016/17; –4 sites are currently under consideration for projects •Industries ranged from data centers, trucking/logistics, brewing, aerospace parts and medical device mfg. •Great River Energy and Xcel Energy have certified sites programs with the following: –Great River Energy has 8 certified sites ranging from 19-120 acres –Xcel Energy has 9 certified sites ranging from 39 –485 acres Workforce & Demographics •Minnesota is experiencing its lowest unemployment rate in 18 years (3.0%), and added 11,200 jobs in July. •However, Minnesota is being viewed as a destination for and is gaining residents, such as Millennials, as shown below: Financial Assistance •Programs to assist competitive projects –Minnesota Investment Fund(MIF) – loans/forgivable loans; fund has $19M, max award per project is $1M –Minnesota Job Creation Fund (MJCF) – performance based award; fund has $13M, max award is $1M Infrastructure Assistance •Programs to assist communities/projects –Greater MN Business Development Public Infrastructure (BDPI) –eligible outside 7 county Twin Cities metro; fund has $5M –Innovative Business Development Public Infrastructure (IBDPI) –statewide eligibility; fund has $2.5M Job Training Assistance •Job Training Assistance Programs –Minnesota Job Training Incentive Program (JTIP) – eligibility in Greater MN, excludes 7-county Twin Cities Metro. Budget for FY2019 increases to $1.3M; Max award is $200K –Minnesota Jobs Skills Partnership (MJSP), available statewide; $6M Fund. Max award is $400K Regional Business Development Managers Thank you •Please visit www.CompareMN.com for more information and details about economic development in Minnesota.