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

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1 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.: Port Authority Update Meeting Date: October 23, 2017 ACTION REQUESTED: Report Only ATTACHMENTS: 1. Director' s Report to Port Board 2. September News & Views Blog Article BACKGROUND: The Port Authority Board met on October 10th with an agenda that included the following items: New Member. Steven Gudgell was sworn in as a new Board member; he is the Chief Administrative Officer for Mayo Clinic Health Systems in Cannon Falls, Lake City and Red Wing. Director' s Report. The monthly Director's report is attached that was provided to the Port Authority Board on October 10. Committee Reports. No committee reports were provided due to no meetings. Highway 19/ 61 Property Update. Monte Hilleman of the St. Paul Port Authority was present to provide an update on their marketing of the city's 18- acre site at the southwest corner of Highways 19 and 61. Since marketing the property for the past six months, he has received six inquiries. Two of those did not meet the project criteria, and two expressed interest with no further action. Two appeared to have serious levels of interest, with one of those still in contact with Monte through a broker contact. That interested party would purchase all of the property and potentially employ up to 150 people. The Port Board discussed actions that should be considered now to get the property better prepared for development, including: ( 1) finalizing property line/ plat changes with MnDOT on access and right-of- way; ( 2) addressing environmental remediation; and ( 3) initiating demolition of the existing building. Monte provided staff

2 with a list of actions and estimated budgets to be reviewed further by the Port Board and City Council. PACE Program. Pete Kline of the St. Paul Port Authority was present to provide information about the PACE Program, including some specifics related to Red Wing. His power- point presentation can be seen on the October 10th Port meeting video. Funding Pledge to Baldy125. The Port Authority adopted Resolution # 300 which 50, 000 to the Friends of American Ski Jumping, through the Jerry Borgen pledge is conditioned on: ( 1) full project funding achieved by September 30, 2018, and ( 2) project construction started by December 31, pledged $ fund. Their Port Authority Project. related to the old car Previously, the Port Authority asked staff to pursue options wash site on Old West Main Street. These actions could include assisting with the private redevelopment of the site, helping to demolish the existing building, or purchasing the site from the existing owner. I informed the Board that recent input from the property owner indicated that a potential commercial project was being considered, and that he would know in another week or so if that came to reality. If not, he would consider discussing the Port or City' s purchase of his property. Blue Ribbon Commission. The Port Board had previously discussed the idea of reconvening the 2010 Blue Ribbon Commission in order to review their recommendations and subsequent accomplishments for economic development. I recommended that the Port Board consider such action early in 2018 due to the level of current activity going on with Red Wing' s 2040 planning process. Ad Hoc Committee. health related care and to high Committee to President Rehder led a discussion on the topic of community insurance. Since this topic has negative impacts on local businesses costs ( compared to the Twin Cities), research and address she proposed forming an Ad Hoc it. The Board members gave verbal support for this approach. Q& A Forum. The Port Authority held its second informal Q& A Forum, which was held in Building from 7: 00 8: 00 p. m. Staff provided some updates on various topics, including the regional airport, riverfront activities, and local development activity. the Ignite Residents were in attendance at the forum as well as Facebook Live participants. Overall, there was good interaction and questions during the event. November Meeting. The Port Board will meet next on Tuesday, November 7th at 4: 30 p. m. at City Hall-, this meeting must adjourn by 6: 00 p. m. due to elections. RECOMMENDATION: Information Only

3 TO: Red Wing Port Authority Board FROM: Dan Rogness, Director Agenda Item No.: 10 (Community Development Director Report) Meeting Date: October 10, 2017 Red Wing 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, November 7, 2017 (must adjourn by 6:00 p.m. due to election night). Commissioners on Wheels. The Minnesota Business First Stop and Innovation Tour Southeast Minnesota was held September 18th, including the state department commissioners and staff. The tour promoted the Minnesota Business First Stop. The commissioners toured Red Wing Shoe Plant Two at 11:00 a.m. followed by a noon lunch at Red Wing Ignite. During lunch, 3M Fall Protection and SCS Elevator Products gave presentations. Shari and I both talked to the commissioners at lunch about great things happening in Red Wing (see attached handout). Recruitment & Retention Event. Eight local organizations sponsored an event in Red Wing focusing on job recruitment and retention for area businesses. This event was held at Minnesota State College Southeast. Shari helped develop the agenda and corresponding speakers, including Luke Greiner (DEED Regional Labor 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. In addition to those two speakers, seven others shared their experiences from a business perspective. Shari and I both attended, which included nearly 80 total attendees Tax Levy and Budget. The previously approved 2018 tax levy and budget for the Port Authority was based on Marshall Hallock s estimated market value for the city. He has now received the final Estimated Market Value from the county, which results in a decreased tax levy and budget for the Port of $9,953. The previously approved tax levy was $410,561 compared to the final Page 1 of 3

4 maximum tax levy of $400,608. The proposed Port Budget must also need to be reduced by that figure, which I ve taken from the line item Account #54120 Land Improvements, which will change from $160,000 to $150,047. Downtown Development Corporation. The final report for the Red Wing Downtown Development Plan proposal is nearing completion. Several options have been analyzed, including the creation of a Development Corporation. The final report and recommendations will be presented to the City Council on November 13. 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. Monthly Blog Article. I completed my third monthly blog article (attached), which is posted on the Port website, Community Development Department website, and Facebook. Holiday Stroll Sponsorship Update: Shari contacted the Downtown Main Street Organization after he Port s September 5th meeting. She informed the organization that commissioners had requested clarification regarding the $500 sponsorship request (if funds would be solely used for the Stroll or if the funds are to be used to support DTMS). Shari also requested a copy of the Holiday Stroll budget as requested by Commissioner Munson. DTMS responded that October 10th would be too late for the Port Authority s sponsorship to be included in any marketing materials. The DTMS and the Holiday Stroll Committee stated they were disappointed that the Port Authority Board doesn t think of this as an opportunity to advertise their organization and support of a major economic driver for local businesses. If the Port Authority Board would like to become a major sponsor ($5000 commitment) then they would be glad to provide more information. As they were only asking for $500 advertising commitment, they will pass on pursing this further. DTMS is excited for the U of M Tourism Center to conduct an economic impact survey during this Holiday Stroll so that they may better understand how businesses are impacted. Once DTMS receives the information,they will share with both the City and the Port Authority. Meetings Shari and I have attended in September include the following: House Capital Investment tour of Red Wing; stop at Mt. Frontenac Southeast Minnesota Economic Summit Kick-off meetings for the Levee Park Dockage and Improvement project DTMS meeting to demonstrate a ski jump economic impact calculator Red Wing Manufacturing Meeting MN Land Trust tour of sites in Red Wing MDOT Manufacturers perspectives on Transportation State Commissioners Tour of Red Wing Tour of Xcel s Steam Plant J2G Transportation Committee Goodhue County Economic Summit at Mt. Frontenac JPN tour of businesses in Wabasha and Lake City MN American Planning Association conference in Mankato Work in Progress/Completed (from Shari): Reports were completed for the MIF State and Federal Revolving Loan Fund Report completed for the USDA IRP Loan Page 2 of 3

5 Working on the four ADM leases with the Harbor Commission Lease Committee Recruit and Retain Conference Working on two possible loans Attachments: 1. Dan s News & Views, September Red Wing River Town Renaissance (handout to state commissioners) Page 3 of 3

6 Dan s News & Views Blog September 2017 In 1970, a news article mentioned the first service hangar to be built at the Red Wing Regional Airport to specifically serve the flying public. The article went on to say, The decision to go into the maintenance and fuel business on a permanent basis is a sign that private air travel is really coming of age in Red Wing. And certainly it should be. The diversity of the local manufacturing community is such that business air travel is bound to increase. In March of 1946, the City of Red Wing purchased 147 acres of flat land above the The Goose ( Goose Lake) for $7,000. The purchase was conditioned upon approval of the Minnesota Aeronautical Commission in order to operate an airport at this location in Pierce County, Wisconsin. Since that time nearly 70 years ago, the airport has grown and prospered. It has a 5,010 x 100 feet runway, terminal, 44 hangars, and two corporate administration buildings. The airport also provides space for the Ellsworth Fire Department and Civil Air Patrol. Red Wing Aeroplane Company has a significant presence at the airport with a growing airline charter service of 13 jets with clientele throughout the U.S., Canada, Caribbean and South America. The company has approximately 100 employees, including pilots, mechanics and administrative staff. Wes Converse started the original aircraft maintenance company with his dad, Bob, in A Star Tribune article in 2011 described their clientele as corporate executives, sports figures, celebrities, as well as many other (average) people. Aeroplane s latest expansion at the Red Wing Regional Airport includes onsite flight simulators and training programs. Today, many of the local commercial and industrial businesses use this airport, such as Red Wing Shoe Company, Treasure Island, Xcel Energy and Archer Daniels Midland. Without close access to air travel, the productivity of businesses in and around Red Wing could be impacted in a negative way. This airport is unique in terms of its two-state relationship as a land use and operation that crosses the state line. A concluding sentence in the 1970 news article about Red Wing s airport said, A solid airport operation is one more important tool to help keep the local economy thriving.

7 A Report Card for the 2040 Red Wing Comprehensive Plan has been completed, including measurements in ten topical areas of life. These topics include: (1) The Economy, (2) Public Safety, (3) Housing, (4) Getting Around, (5) Parks, Land Use and the Built Environment, (6) Physical & Mental Health, (7) Lifelong Learning, (8) Community Connections & Accessible Government, (9) Environmental Resiliency, and (10) Arts & Culture. I often like to see a comparison chart done when looking at various data points for a community in order to see how much we are similar or different to others. Therefore, I m showing Red Wing in comparison to Hutchinson, which is a city approximately the same size and the same distance from Minneapolis. As you will see in the table below, some areas of similarity exist between Red Wing and Hutchinson, and other areas show significant differences. City of Red Wing, Minnesota City of Hutchinson, Minnesota Dan Rogness, Red Wing Community Development Director