CITY COUNCIL AGENDA REPORT. Honorable Mayor and City Council Members. Dan Rogness, Community Development Director. 7. A. Port Authority Update

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1 City of RE CITY COUNCIL AGENDA REPORT TO: FROM: Agenda Item No.: Honorable Mayor and City Council Members Dan Rogness, Community Development Director 7. A. Port Authority Update Meeting Date: September 11, 2017 ACTION REQUESTED: Report Only ATTACHMENTS: 1. Director' s Report to Port Board 2. August News & Views Blog Article BACKGROUND: The Port Authority Board met on September 5t" with an agenda that included the following items: Director' s Report. The monthly Director's report is attached that was provided to the Port Authority Board on September 5. Committee Reports. A verbal report was given by Commissioner Munson regarding the Harbor Commission' s meeting held earlier that day at 7: 30 a. m. That meeting included: a) a discussion on a 5 -question survey to be sent to marina customers, ( b) a positive budget update, ( c) a status report of ADM and Landfill Services leases, ( d) a presentation by Ron Seymour on transient dock progress with funding approvals, ( d) two winter storage agreements, and ( e) issues related to marina policies associated with threatening behavior and liability. Cabela' s 2018 Tour. A presentation was made on the Cabela' s National Walleye Red Wing 2018 Tour, showing significant economic benefit to this area. to support this event with $ 2, 500. The City Council will be asked to contribute an additional $ 10, 000. The Board agreed Sign, Awning and Fapade Grant Program. I provided the Board with a draft set of guidelines for this program, which would be applied city-wide versus only in the downtown area. The draft guidelines allow either a 25% or 50% match up to a maximum of $2, 500 per application. A set of "priority guidelines" would be used to

make selections for those commercial applications outside of a historic district. The HPC or a newly formed 4 -member selection committee would make recommendations to the Port Authority.

2 make selections for those commercial applications outside of a historic district. The HPC or a newly formed 4 -member selection committee would make recommendations to the Port Authority. Port funding for this program would likely be set at $ 25, 000 in 2017 and an additional $ 25,000 in will return with a final program draft to the Port's meeting in October. Port Authority Project. Based on a request at the previous meeting from Commissioner Munson, I presented the Board with some project recommendations within the Old West Main area. Helping to redevelop the old car wash property had been suggested as a possible Port project. In addition, I have been working with the Plaas' on helping them to move their business operations completely out of Old West Main to their existing property on Pepin Avenue. The new Holiday Inn Express building, as well as another potential project was also mentioned ( yet to be identified in this area). Therefore, I recommended that the Port consider developing a toolbox of public financing assistance that may be used to assist multiple redevelopment projects in the Old West Main area over the next few years. They agreed with this approach, but they also asked staff to move forward with the owner of the old car wash property in order to see that building demolished and/ or redeveloped in Other Funding Requests. A $ 500 request was received by the Port Authority to support the Holiday Stroll event in In addition, President Rehder asked the Board to consider financial support to the Friends of American Ski Jumping during their local funding campaign for Baldy125 in the range of $35, 000 to $ 50, agreed to discuss these various funding requests with the city' s Finance Department and return with a recommendation based on the Port' s 2017 budget. Enabling Resolution. Section 8 of Enabling Resolution 7030 ( as amended on 11/ 28/ 16) requires that, "at least once annually by September 6, the Authority shall submit to the City Council a report stating whether and how the Enabling Resolution should be modified pursuant to Subd. 2 of the Enabling Act". The Board approved a motion not to amend the current enabling resolution ( see also the Status Report). Discussion Items. Commissioner Tebbe noted that meetings have started related to planning for the transient dock improvements. He also expressed disappointment that no economic development questions had been included in the city-wide random survey that was recently approved by the City Council. October Meeting. The Port Board will meet next on Tuesday, October 10th at 5: 00 p. m. at City Hall, which is a week later than normal. After their meeting, they will hold another Q& A Session at a location yet to be determined. RECOMMENDATION: Information Only

3 Red Wing Port Authority ] An Economic Development Agency TO: FROM: Red Wing Port Authority Board Dan Rogness, Director Agenda Item No.: 10 ( Community Development Director Report) Meeting Date: September 5, 2017 Red Winq Port Authority's Mission Statement The Red Wing Port Authority is the primary leader for promoting economic and industrial development, together with identifying and coordinating redevelopment for the purpose of enhancing the tax base, promoting employment and contributing to the economic vitality and quality of life of the City of Red Wing. Red Wing Port Authority Meeting Schedule: The next Port Authority meeting is scheduled for Tuesday, October 3, Economic Development Partners. The economic partners last met on August 16 to primarily discuss the previous Customer Experience Mapping process and corresponding implementation steps. All partners agreed that they need to be part of the " customer first" sharing process to make sure the 2 -track process is followed ( at least until a coordinator is hired). Nanohealth USA Expansion. This medical -related company in Red Wing received approval by the Planning Commission and City Council to amend the PUD for the Prior Lake Mall in order to expand their business into the soon- to- be vacant JCPenny space. Of the total 22, 300 square feet, Nanohealth would use about 10% for retail in the front with the remainder being used for light manufacturing/ assembly. They have signed a lease for this space and will likely be occupying it be early Shari and I visited with them recently about financing options through Port funds. Ski Jump. I attended a " Born of the Waters" celebration event hosted at the Mount Frontenac Golf Course on August 311t for Baldy125 Olympic Entertainment Destination. I the meeting, along with any other Port Commissioners that may have attended as well. will report on this event at Recruitment & Retention Event: On Thursday, October 5, eight local organizations will be sponsoring an event focusing on job recruitment and retention for area businesses. involved in developing the agenda and corresponding speakers. seen at a recent EDAM conference to speak here, including Luke Greiner ( DEED Regional Labor Shari has been She got two speakers that she had Page 1 of 3

4 Market Analyst) and Miles Seppelt ( Hutchinson Economic Development Director). They spoke about Minnesota' s Education and Employment Reality and the importance of not recruiting, but re -allocating as a solution to the skilled workforce shortage. The Hutchinson EDA launched an ambitious skilled workforce development initiative, employing a five -prong strategy of realigning education and manufacturing, using facilities & equipment at their high school. Hutchinson is providing its employers in all sectors with the skilled workforce they need instead of recruiting workers from elsewhere. Since its inception in 2006, the Cardinal Manufacturing program is being used in Hutchinson, which has opened its doors from Wisconsin to other schools throughout the USA. Shari encourages you to visit their website org. Shari also invited Miles to attend the RWMA September 12th meeting at the Red Wing High School. Commissioner on Wheels. The Minnesota Business First Stop and Innovation Tour Southeast Minnesota will be held September 18-20, The tour will promote the Minnesota Business First Stop and how it can assist businesses in their strategic development and expansion projects. The Commissioners will also be learning about innovative businesses, their challenges and successes. In July, Shari was contacted by MN DEED about hosting this 2017 tour, which includes the Governor' s Cabinet and commissioners from the departments of: ( 1) Employment & Economic Development, ( 2) Agriculture, ( 3) Commerce, ( 4) Labor and Industry, ( 5) Natural Resources, ( 6) Revenue, ( 7) The commissioners will arrive at Red Wing Shoe Plant Two for a tour at 11: 00 a. m. on September 18th followed by a noon lunch at Red Wing Ignite. During Transportation, ( 8) IRRB, and ( 9) MPCA. lunch, 3M Fall Protection and SCS Elevator Products will give presentations. The commissioners will be departing for Winona at 1: 30 p. m. October 23rd Manufacturing Luncheon. The RWMA video will be presented at the luncheon, which is sponsored in part by the Port Authority. It will highlight 12 manufacturing businesses in Red Wing, and it will be used as both an attraction and a recruitment tool. Congressman Jason Lewis Staff Tour. On August 3rd, Andrew Giacini, Legislative Assistant to Jason Lewis, was in Red Wing to tour a number of things and projects. Peggy Rehder and various city staff took Mr. Giacini to view the port activities along the Mississippi, the bridge replacement project, the city' s airport, and local law enforcement response center. He was very impressed with all those positive things happening in Red Wing! Riedell/ Moxi Video Production. On August 16th, personnel from California representing Riedell' s popular roller skate brand ( Moxi) were in Red Wing. Although their primary purpose here was to tour the factory and discuss their brand, they were also willing to participate in a video production to promote Red Wing ( and Riedell in Red Wing). Therefore, two city videographers, including Melissa Hill and Calli Owens, spent a few hours shooting video of them in the factory, near Levee Park, and at the city skate park. A video will be forthcoming soon, which could be one of several special economic development videos throughout the year. Monthly Blog Article. I completed my second monthly blog article ( attached), Port website, Community Development Department website, and Facebook. which is posted on the Meetings Shari and I have attended in August include the following: MN Compass workshop in Rochester ( new demographic data for SE MN). of Red Wing by Andrew Giacini ( Jason Lewis staff) River City Days ( Dan' s first time) Tour Old West Main business visit Woodruff Page 2 of 3

5 Brownfields training ( Shari) Tour of SCS Elevator Products Tour of Treasure Island Casino/ Hotel City Budget Workshop Economic Development Partners Committee meeting Moxi Roller Skate team tour ( Riedel) factory) and video production Old West Main business visit Plaas Plumbing Nanohealth visit Downtown Development Corporation meeting Ski Jump celebration event Work in Progress (from Shari): Waiting on a loan application from a client Met with developers interested in projects in Red Wing Attachments: 1. Dan' s News & Views, August 2017 Page 3 of 3

No City of RE ' NG Dan' s News & Views Blog Red Wing Port Authority pevelapmeny August 2017 Over the past few months, I have visited a number of local businesses, both commercial and industrial.

6 No City of RE ' NG Dan' s News & Views Blog Red Wing Port Authority pevelapmeny August 2017 Over the past few months, I have visited a number of local businesses, both commercial and industrial. I would like to highlight two local manufacturers, " A Tale of Two Companies": SCS Elevator Products, Inc. Located on Cannon River Avenue, this manufacturer was founded in 1976 by Robley G. Cook, a visually -impaired individual living in Minneapolis. He identified the elevator industry as a primary market for Braille signs. Mr. Cook died in 1983, and the business was acquired by Donna Anderst in 1986 ( Donna had helped him with accounting services). SCS focuses on designing and manufacturing finished products for elevators, using plastic injection molding, die casting, metal stamping, decorating and assembly. In 2005, Shari Chorney, Port Authority Business Development Manager, helped Donna secure a nearly 40, 000 square foot local building after looking statewide. Shari worked on a JOBZ Agreement, and SCS has surpassed its original 38 jobs requirement with 73 current employees, as well investing considerable capital here. In 2016, Donna was awarded one of 51 " Woman in Business" awards by Minneapolis/ St. Paul Business Journal for women entrepreneurs, executives and leaders. ELEVATOR BRAILLE & SIGNAGE SCS 15 I ` ELEVATOR PRODUCTS INC. Nanohealth USA. Located on Tyler Road, this FDA medical device manufacturer makes Nanotherapeutics CTS, a futuristic, wearable nano -science that accelerates healing from joint replacement surgery and all sports or work related soft- tissue injuries. These aftercare products are used in hospitals, out- patient surgical centers, all types of chiropractic, pain and physical therapy clinics across the U. S. and overseas. Their nano -technology is unlike all forms of standard ice or gel cold therapy devices that can cause health risks like frostbite from improper overcooling. Nanohealth USA is expanding into the JCPenny space in the Red Wing Mall this fall. The City Council approved an amendment to the Red Wing Mall PUD that allows for a noncommercial use. They will showcase all their products available here in Red Wing to the general public. The founders chose Red Wing after a nationwide search of several states in which to build their manufacturing facility, confiding to Shari Chorney and me that they chose Red Wing mainly due to the high quality work ethic and dedication among its workers. Visit their website at nanohealthusa. com. na * health USA Natural, Wearable, Cooling Pain Relief

Downtown Red Wing has been an area of transition this summer, including the installation of 170 new decorative street lights, and the start of the bridge replacement project.

7 Downtown Red Wing has been an area of transition this summer, including the installation of 170 new decorative street lights, and the start of the bridge replacement project. New lights replaced the old 3 - globe poles with a single LED Victorian luminaire fixture on black aluminum poles. New planters, benches and bike racks were also added along Main Street. It' s obvious to me that property owners and businesses take pride in this city, including those on Old West Main Street and all other commercial areas of Red Wing. On August 28, the City Council approved the final exterior building plans for the proposed Holiday Inn Express on Old West Main Street. The 71 -unit, 3 -story building below, will soon break ground after two existing commercial buildings on the site are removed or demolished. On August 17, Riedell Shoes, Inc. hosted the Moxi Skate Team from California; Moxi Roller Skates are made in the Red Wing factory. City staff worked on a video of the team while they were here, shooting footage in the factory, at Levee Park, and in the skate board park. Michelle Steilen is the Brand Manager for Moxi ( third from right below), and Calli Owens is the City' s intern videographer (third from left). Dan Rogness, Red Wing Community Development Director

CITY COUNCIL AGENDA REPORT. Honorable Mayor and City Council Members. Dan Rogness, Community Development Director. Report Only

CITY COUNCIL AGENDA REPORT. Honorable Mayor and City Council Members. Dan Rogness, Community Development Director. Report Only City of W11" ED ING CITY COUNCIL AGENDA REPORT TO: FROM: Honorable Mayor and City Council Members Dan Rogness, Community Development Director Agenda Item No.: 7. 13. Port Authority Update Meeting Date: