The URL can be used to link to this page

Home My WebLink About[08] Greater St. Cloud Development CorporationCITY OF ST. JOSEPH Council Agenda Item 8 MEETING DATE: May 5, 2011 AGENDA ITEM: Greater St. Cloud Development Corporation SUBMITTED BY: BOARD/COMMISSION/COMMITTEE RECOMMENDATION: The EDA unanimously recommended the City Council authorize the expenditure of $ 8,000 for the 2011 membership dues for the St. Cloud Partnership, now known as the Greater St. Cloud Development Corporation. PREVIOUS COUNCIL ACTION: Dave Gruenes appeared before the Council in April to discuss the newly formed organization. The Council at that time tabled action until April 21, and staff requested the matter be tabled to May 5 so that as the organization developed more information would become available. BACKGROUND INFORMATION: Since Dave Gruenes last appeared before the Council the following changes have occurred: • The St. Cloud Partnership has dissolved with representatives finalizing the required processes. • April 11, 2011 the Incorporation papers were filed forming the Greater ST. Cloud Development Corporation. Marty Moran will serve as the Interim CEO of the organization. • $ 50,000 of the fund balance of the Partnership was allocated to hire Region 7 to carry out the CEDS program (Federal program for grant opportunities). • Announced the 40 investors that committed to being a part of the Greater St. Cloud Development Corporation. • New Board convened and identified the sub - committees that will assist the Development Organization. All members will serve on a committee. Included in this packet is a summary of Partnership activities over the past years. It goes without saying that many people were frustrated with the existing organization as it does not appear to have been as productive as a community would like. It is for this reason that a new organization was formed. In an effort to create an organization that would be fruitful, the Partnership looked at various regional centers and models. The investor model has illustrated successes and it is for that reason that the Partnership is changing. The difference between the two organizations is the City has the opportunity to be part of forming an organization that will be productive. At this time the framework for the Organization has not been set and it will take 2011 to establish a work plan with goals. 8:1 BUDGET /FISCAL IMPACT: $ 8,000 ATTACHMENTS: Request for Council Action ............ ............................... 8:1 -2 Greater St. Cloud Dev. Corp. Information ................. 8:3 -10 REQUESTED COUNCIL ACTION: The Council must decide whether or not to be part of the organization of the new development corporation. 8:2 Greater St. Cloud Development Corporation April 12th, 2011 Dale Wick St Cloud Area Economic Development Partnership, Inc. Board Chair 110 6th Avenue South St. Cloud, MN 56301 Dear Dale, We are pleased to announce the creation of the Greater St. Cloud Development Corporation. The Articles of Incorporation were filed by Quinlivan and Hughes on April 11th. 2011. Per the request from the Partnership's Executive Committee on March lot, 2011, we wanted to provide you with additional information regarding the organization, as well as information that Tom Moore and Marty Moran have been working on with respect to the transition. Attached is the press release, the initial committee roster, a transition document, which shows the transition categories and status of transition items, and, an email confirming that the articles have been filed with the Secretary of State. Dale, we look forward to continuing to work together through this transition. Please feel free to call Marty Moran at 320 - 253 -1424 with any questions. Sincerely, Marty Moran Interim CEO Greater St. Cloud Development Corp. CC: Rick Bauerly Kathy Gaalswyk Dave Gruenes Len Wohlman Bob White Board President Greater St. Cloud Development Corp. 8:3 News Release — April 8`h, 2011 NEWCO FOUNDING DIRECTORS: The [Newco Name] was incorporated today as a Minnesota non - profit corporation American Heritage Bank formed to advance select economic development initiatives in Central Minnesota. Newco 's Founding Directors Include forty large employers, high growth Anderson Truckingservice enterprises, and anchor institutions in the region who have agreed to join the Bernick's organization's initial Board of Directors and invest $7,500 each to fund its first year of operations. BREMER Bank Len Wohlman, former President of American Heritage Bank and the Chair of a C &L Distributing regional Economic Development Task Force that recommended formation of a new Centracare Health System entity to advance economic development in the region, shared that "over the past two decades, economic development efforts across the country have shifted from Central Minnesota Community Foundation being primarily public sector funded and governed to being primarily private sector Coborn's funded and governed." College of Saint Benedict This evolution, he said, follows from the growing regulatory parameters and budget constraints facing cities, counties, and states. Private sector businesses generally DeZURIK have more latitude to take calculated risks and to invest discretionary financial eBureau resources. The recommendation to establish a new entity for economic development was an invitation to private sector organizations in the region to invest Granite Equity Partners their time and money to advance the interests of their organizations and to provide leadership for the community. Wohlman is appreciative of the near unanimous Gray Plant Mooty decision of the St. Cloud Area Economic Development Partnership to support Newco. Health Partners Bob White, former President of Banker's Systems and current Chairman of Initiative Foundation Microbioiogics, will serve as the Board Chair for Newco. KDv Earl Potter, President of St Cloud State University, has.agreed to serve as the Vice LarsonARen Chair and as the Search Committee Chair. Leonard Street & Deinard Kathy Gaalswyk, President of the Initiative Foundation., has agreed to serve as the ING Direct Strategy Committee Chair. Geo -comm Chris Coborn, President of Coborn's Inc., has agreed to serve as the Investment Committee Chair, responsible for fundraising efforts.. Gold N' Plump Marco Brian Myres, Head of Sales USA for ING Direct, has agreed to serve as the Marketing Committee Chair. Microblologics Dave Gruenes, former legislator and state commissioner of revenue and current Miller Architects and Builders external relations manager for Stearns Electric, will serve as the Community Park IndusMes Relations Committee Chair. In reflecting on this role, Dave said "I look forward to engaging and partnering with our local, state, and federal elected officials and St. Cloud Industrial Holdings appointed managers who bring significant insight, tools, and resources to bear for St. Cloud opportunities the benefit of the regional economy. St. Cloud State Universky Greg Klugherz, the CFO of Centraare Health System has agreed to serve as Treasurer, and Rick Bauedy, Managing Partner of Granite Equity, has agreed to serve as St. Cloud Technical College Secretary for the Board. Saint John's University The organization has engaged Clear Path, LLC and Marty Moran as the interim CEO, Spee -Dee Delivery NCDS and Tom DIFiore, as the fundraising consultant, and Keystone Search and ..8 :4 Rebecca Driscoll, as the executive search firm for the CEO search. St. Cloud Times Stearns Electric U.S. Bank Viking Coke W. Golunan Construction W3i Weds Fargo Wink @nm BuBding Xcel Energy —8:5 New Economic Development Entity Preliminary Board Committees Leading Organization Executive Leader Role St Cloud State University Dr. Potter, President Convener St. Cloud Technical College Joyce Helens, President Member Gold N' Plump Mike Helgeson, CEO Member St. Cloud industrial Holdings non Schtffier, CEO Member C&L Distributing Bemle Perryman, CEO Member Wells Fargo Mark Seehusm, President Member Spee -Dee Delivery Don Weeres, CEO Member /n(Notfve Foundation Strategy Committee Kathy Goole"k, President Converter eBureau Gordy Meyer, Founder /President Member Park industries Tom Schlough, CEO Member Geo -Comm Tom Grones, CEO Member U.S. Bank Mike Markman, President Member College of Saint Benedict Sue Palmer, VP Finance & Administration Member Viking Coke Mary Soidner, EVP Member KDV Loren Vierq Managing Partner Member Cobon's Committee Investment Ch* Coboq CEO Convener Saint John's University Rob Culligan, VP Institutional Advancement Member De2URIX All Kremers, Director Member BREMER Bank Tom Pickers, President Member IarsonAllen Mark Krebsbach, Managing Principal Member Gray Plant Monty Lee Hansok Senior Partner Member Anderson Tnhddng Service Scott Fuller, CFO Member Winldeman Building Andy Auger, EVP /CFO Member American Manteca rank Transition Committee lee K42mmoq, Dkeeasr TYwrs►tdon OearPath Marty Moran, Managing Partner Transition 1N6 Direct Marketinp Committee Brian Aolym Head of USA Saks Convener Microblologks Brad Goskowia, CEO Member Marco Jeff Gnu, CEO Member W31 Use Nistkr, VP of Sales & Marketing Member St. Cloud Tknes Scott Johroom, President/Publisher Member Lenard Street & Ddmrd Brian Schoenborn, Managing Partner Member Miller Architects &Builders Joe Selfert,President Member StaamsEkeblt CommunitV Relations Committee Dare Bruener, &tend Relations Convener CM Community Foundation Steve Joul, President Member St. Cloud Opportunities Loren Hag, Board Member Member Xed Energy Karen young, Community RelWons Member W. Gohman Construction Mike Gohman, President Member eamkifs Jason Bernick, EVP Member Health Partners Andr Vinson, CEO Member Bob White Governance Committee Bosd ehdr Convener St. Cloud State University Dr. Potter, President Search Cmte Initiative Foundation Kathy Gaalswyk, President Strategy Corte Cobom's Cluls Cobarm CEO Investment Corte Amerlan Heritage Bank Lan Wohbvm% Okrector Transition Cmte INS Direct Brian Myres, Head of USA Sales Marketing Crnte Stearns Electric Dave Gruenes, External Relations Community Relations Cmte Centracare Health System Greg Kkrgher; CFO Member/rreasurer Granite Equity Partners Rids Bou", Managing Partner Member/Secretary •Pkast kt" WbJtq/07 *orldd•B0u**1SeerctXY h owlyou would Nke tossvAWh tomrdttees. 4 6 Partnership Accomplishments 1987 Fulfillment Systems bring 100 jobs to St. Cloud Samson Industries breaks ground in Sarteli Sears Contract with WCI Freezer 200 new mfg jobs to St. Cloud Corporate Woods Development (Clearwater Road) begins 1988 Partnership receives $20,000 grant from First Bank Foundation for incubator planning Fingerhut begins 60,000 sq ft expansion — St. Cloud 1989 Pan- O-Gold Expands 18,000 sq ft — 40 new jobs - St. Cloud Jennings Decoy 7500 sq ft expansion — St. Cloud Leisure Island expands 50,000 sq ft - ? Business incubator and Business Resource Center opens Tenants include Regional Manufacturing Center Small Business Development Center MN Marketplace Business Innovation Center MCO Labs expands to double production — St. Joseph 1990 ME International purchases Brown Bovari building - St. Cloud WCI Freezer receives $432,900, grant from DTED CSPAN -21 commences — cooperative strategic planning effort between cities and townships Focus on: Government cooperation, transportation, the arts, sewer and water, the environment, expanded employment and higher wages, public /private partnership to meet community needs Vic West Steel locates in St. Joseph Township May Printing constructs 84,000 sq.ft facility in Corporate Woods Nahan Printing 110,000 sq ft expansion — St. Cloud 1991 Woodcraft builds $5 million door plant in St. Cloud FSI opens 30,000 sq ft shop and office in the Business Resource Center Komo Machine completes 28,000 sq ft expansion in Sauk Rapids Area mail processing facility opens in Waite Park, 78,000 sq ft s:7 1992 Woodcraft high -tech computer -based training program begins — SCSU, SCTC and Jobs Skills Partnership cooperative Keystone Fishing Hotline opens 30 new jobs — St. Cloud International Precision Machining Company buys Waite Park facility St. Augusta Landfill Task Force is headed by The Partnership (Tony) Herberger's Distribution Facility locates in Sartell Komo Machine begins 40,000 sq ft expansion — Sauk Rapids Stearns Manufacturing expansion in Sauk Rapids 70,000 sq ft 1993 EDAM chooses The Partnership to receive Economic Developer of the Year award Airlink service comes to St. Cloud Regional Airport Sick Child program begins at St. Cloud Hospital Bankers Systems expands software division — St. Cloud Nahan Printing adds press and 15,000 sq ft expansion — St. Cloud Mathew Hall Lumber expands component plant in St. Joseph Township 5,600 sq ft Webway 38,000 sq ft expansion — St. Cloud 1994 Caseworks Inc locates in Sauk Rapids 26,000 sq ft; 100 new jobs DeZurik in Sartell adds jobs Fingerhut 500,000 sq ft expansion; $30 million; 400 jobs — St. Cloud Liberty Paper locates in Becker; $65 million; 100 jobs Fulfillment Systems Distribution Center opens on Clearwater Road Herberger's Distribution Phase II - Sartell School to Work Program receives $10,000 grant form Education and Employment Training Council Landfill clean -up bill passes DIED issued Economic Blueprint for the state, The Partnership selected as contractor for the Central Minnesota section Youth Apprenticeship Program (School-To-Work) receives $89,250 implementation grant Royal Tire expands, adds jobs — St. Cloud Northern Wire 10,000 sq ft expansion 1995 Gold'n Plump Cold Spring $3.4 million expansion, adds 50 jobs C & L Distributing 3000 sq ft, 15 jobs — Sauk Rapids Custom Eyes Sauk Rapids $250,000 expansion; 20 new jobs Webway $16.5 million expansion; 75 new jobs — St. Cloud Grede purchases ME International foundry —St. Cloud Northwestern Artificial Limb and Brace 16,000 sq ft expansion — St. Cloud Rheaume's House of Lettering 30,000 sq ft expansion - St. Augusta Design Line Cabinets Sauk Rapids 25,000 sq ft expansion G & K services 45,000 sq ft plant — St. Cloud 1996 s:s Sam's Club $8000 marketing grant 1997 Partnership works with Yuwa Mach! Japan to market central Minnesota products there Community Bio- Resources 12,000 sq ft — St. Cloud Lehman Farms 35 new jobs Foley Menasha 80,000 sq ft — St: Cloud Nash Finch 65 jobs — St. Cloud Northern Wire 41,200 sq ft expansion — St. Cloud Talon Engineering 13,000 sq ft in Sauk Rapids Data Research Inc 20 new jobs — St. Cloud 1st St. Cloud Area Community Job Fair 1998 Seren Innovations — St. Cloud and Waite Park Namasco 62,000 sq ft Becker New Flyer 314,000 sq ft — St. Cloud 2000 Wiman Plastics — Sauk Rapids Huisken Meats —.Sauk Rapids MinUn Laundry — Becker Merrill Corp — Sartell Ron's Cabinets — Sauk Rapids Partnership with SCSU to produce Quarterly Business Report begins 2001 Labor Force Assessment grant from DIED $99,814 $9,000 contribution from The Partnership to Mesaba Maintenance Facility 30,000 sq ft ECE invests .$2.3 million with Airport Business Park 2002 5t' Annual St. Cloud Area Community Job Fair Hosted state -wide Dept. of Trade & Economic Development conferences Fingerhut Response Team Steering Committee and Fingerhut Asset Reuse Taskforce Hosted the "Air Card Study" for International Freight Terminal Antioch (Creative Memories) expansion — 240,000 sq. ft. manufacturing & distribution center Partners For Strategic Growth — Community audit completed Tax abatement seminar 2003 2004 2005 8:9 2006 Established the MWSFA (Midwest Stone Fabricators Assn) Granite Fabricators With assistance from the Initiative Foundation — lead the Stearns & Benton County "Enterprise Network Systems Analysis" (ENSA) process Special marketing effort in Mpls /St. Paul Business Journal and Upsize Minnesota Magazine Added private sector "Associate Member" to The Partnership Serve on EDAM (Economic Development Assn of MN) Legislative & Education Committees 2007 St. Cloud area ranked number 11 in Expansion Management Magazine list of Top 20 Small Metro Economic Development Hot Spots. (The only metro area in MN) St. Cloud area was one of the only two MN cities listed in the Milken Institutes 2007 Best Performing Cities Index, an industry benchmark for creating and sustaining. jobs. The Partnership hosted the first Science Initiative of Central MN — "After Hours" event with the Twin Cities based trade association - LifeScience Alley Organized five area organizations to participate in BIO '07 in Boston with DEED in the State of MN Pavilion Assisted in starting MNCAR (MN Commercial Assn of Realtors) in the St. Cloud area 2008 Helicopter facility under construction $35 million; 60 jobs — St. Cloud Led establishment of BioScience Zone in all six area cities Science Initiative of Central Minnesota (SICM) formed ING Direct 75,000 sq ft addition — St. Cloud Partnership enhanced marketing program Northstar Assisted in establishing the "CMMA" (Central MN Manufacturing Assn) in the St. Cloud area Serve on the State of MN Dept of Employment & Economic Development (DEED) Positively MN Executive Committee (The State of MN Marketing Agency) 2009 Comprehensive Economic Development Strategy Carlson Engineered Composits Central MN Freight Storage Henry Fischer served as President of NREDA (National Rural Economic Developers Assn) Board of Directors 2010 Comprehensive Economic Development Strategy 11 year completed Synchronist software purchased 13th Annual St. Cloud Area Community Job Fair 2011 Dale Wick from City of St. Joseph elected Partnership Board Chair Attracted ePromo to St. Cloud area Public Server/Sue /2011 /Partnership Accomplishrraft 8:10