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TABLE OF CONTENTS
1. Letter of Transmittal
2. Annual Report
3. Appendix 1 -News Releases
4. Appendix 2 - Community Fact Survey (under separate cover)
0 5. Appendix 3 - Special Reports
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Vi I lage of Brooklyn Center
7100 Osseo Road
Brooklyn Center, Minnesota 55429
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March 31, 1964
To the Honorable Mayor and Vi 1 l age Council:
We are pleased to submit the Annual Report of 'the Industrial
Development Commission of the Vil lage of Brooklyn Center.
Members appointed to the Commission In Aori 1 1963 were:
Edwin Burt, Marshall Jacobson, Will lam Legler.
Members reappointed to the Commission in April 1963 were:
Harry Johnson, Wayne Lubrecht, Robert Oslund, Earl Rydberg,
Earl Simons.
Dur inq the year the Industrial Development Commission Ordinance
was amended to increase the Commissionts membership from fourteen
to f if teen members.
Gerald Gerber was a member until May 1963 when he resigned.
Arthur Rae ker was a member unt i I July 1963 when he resigned.
Arthur Gustafson, Wilbert Hanson and Robert Lil iestol were
appointed to f i l l the vacanc ie s created by the resignations and
the fifteenth member of the Commission. Dallas Lawrence was a
member until February 1964 when he resigned.
Officers elected were Edwin Burt, Chairman; Roger Machmeier,
Vice Chairman; Ernee McArthur, Secretary.
This report consists of our activities during the year,
including general remarks and recommendations.
Respectfully submitted:
Edwin S. Burt
Marsha I I Jacobson
Harry Johnson
Frank Kampmeyer
William Legler
Wayne L ubrech t
Ernee McAr thur
Roger Machmeier
Robert Os I and
Earl Rydberg
Earl Simons
Arthur Gustafson
Wilbert Hanson
Robert Lillestol
•
BROOKLYN CENTER INDUSTR iAL DEVELOPMENT COMMI SS ICN
March 4, 1964
0
ANNUV~ L R E POR T
The Brooklyn Center Industrial Development Commission has been
active in three areas: promotion, information and develooment.
In Preparation for the Universityts acquisition of the Earle
Brown, property on March 12th, the Industrial Development Commission
has made substantial progress in the develooment of a "%igh impact"
brochure, designed to promote new industries for this area. The
brochure is designed so that additional material may be enclosed,
thereby updating or adapting it to a specific area. Further work
cannot be completed on the brochure until the Universityts method
of distribution of their property is determined. The final
publication of these brochures is planned to be completed with the
cooperation of the new Brooklyn Center Chamber of Commerce, who
have Indicated their acceptance to bear the f i nanc is 1 burden of
printing and distribution.
A prospect card and general information sheet to be used by
Village administrative personnel has been developed by the Commissior
A follow up procedure based on this prospect card enables the
Commission to demonstrate the sincere desire on the part of the
Village of Brooklyn Center to create a positive business cl imate.
A continuing program of news teIease s has been Initiated by the
Commission for the purpose of stimulating local support for
commercial and industrial development. These -releases have been
designed to fill the following- needs basic to any public
information program:
I. Factual Information on the work of the Commission.
2. The tax benefits to be derived from additional business
activities.
3. An awareness of the nub) Ic Is r4ght to complete
Information on the activities of any public body.
It is the intent of the Commission to increase their public
information activities wlfIbIn the Vi l age durInq the coming year,
Obviously sunnort for commercial and industrial development on the
hart of the average citizen is necessary 1f the Commission Is program
is going to be successful ly carried out.
Dupl icate conie s of the news re leases can be found in the
appendix ( I- ) of this report.
To Promote Brooklyn Center Is Industrial cI!mate on a State and
National level, the Indus frial Development Commission Is working
closely with the State ♦f Minnesota Department of Business
Development. This Department periodically publishes "industrial
Horizons" which includes illustrations and site data on specific
industrial and commercial locations available in communities
throughout the State of Minnesota. The pr Intl ng and di str ibution
of this material i,nc luded in "Industr i al Hor Izons" wl i i be at no
cost to the Village of Brooklyn Center, which will receive a ful I
page layout in this publication.
BROOKLYN CENTER INDUSTRIAL DEVELOPMENT COWI SS ICN
ANNUAL REPORT -2-
In February the final draft of the "Community Fact Survey" was
reviewed with Northern States Power. A copy of this survey can
be found in the aooendix ( -2- ) of this reoort. This
brochure contains more detai led data and will be used as a supplement
to the "high impact" brochure .
Dur inn the oast year the Industrial Development Commission
cont i nued their previous orogram of deve loping ad(41 f iona i informaf Ton
and basic data covering Brooklyn Center and the methods of
development utilized by other communities. Major projects in this
area inc 1 uded the following:
1. Tax Base Study
2. 7th Annual Industrial Clinic Report
3. Study of industr is I Deve Iopment Corporat ions
4. Analysis of Sign Ordinance
5. Updating file of existing businesses operating in
the VIi Iage
6, Planning- industrial Development Coordinator (this orofect
to be completed)
Complete comes of the material developed in each of these headings
can be found In the anoendix ( -3- ) of this reoort.
The Industrial Development Commission has been experimenting with
a concept of concentrated effort directed toward spec if is Industrial
and commercial properties. It has been the initial feeling of the
Commission that maximum results could be obtained from the
Commission's volunteer members if efforts at development were
directed toward a Limited number of prooerties. In furtherance of
this program the Commission and it's Contact Committee has spent
considerable time working with prospects and property owners on the
following areas:
1. Er ickson-Bergs from
2. Tri-State (Soo Line)
3. France Avenue Nor th Area
4. 57th and Logan Avenue North
The Commissions concentration on these oronerties has, of course,
not prevented their devoti ng time to other commercial and industrial
sites, as these have developed thru the work on our Contact Committee.
Numerous contacts were made dur ing the year with outside f irms to
try to sell Brooklyn Center as their new location, and we are happy
to report that some of these have resulted in commitments for
industrial or commercial development in the Village. They are:
1. Chevrolet Agency
t3r idgeman is ice cream
BROOKLYN CENTER INDUSTRIAL DE VE LOPMEI\.IT COMMISSION
ANNUAL RE POP T -3 -
S UMMA R Y
1962.-63 saw the Commission working in the area of developing
basic information on the Village preparatory to developing an
active orogram of commercial and industrial growth. The 1963-64
activities of the Commission have been directed toward the
implementation of the basic research done during the Commis s i onTs
first year of existence.
The Commission is very conscious of the additional contact and
promotion work necessary for a really effective program of
Industrial and commercial growth.
It Is the tentative consensus of the Commission that this work
can more readily be carried out with the addition of a new
administrative assistant, specifically designed to work in the
area of planning and Industrial development.
The Industrial Development Commission is very pleased with
the cooperation extended by the Brooklyn Center Chamber of
Commerce in accepf inw the financial burden for the printing and
distribution of the high imoact" brochure; also to Northern
States Power who cooperated In the preparation and printing of the
"Community Fact Survey." The Industrial Develooment Commission will
continue to cooperate with the Brooklyn Center Chamber of Commerce,
t he develooers of the Earle Brown Farm,and other areas on
further promotion.
The Commission would I Ike to express our appreciafion to the
Vi l lage Administrator and his staff for the exce I lent cooperation
we have received during the oast year. The Commission particularly
would like to note the many additional evening hours contributed
by Mr. Lee and members of his staff.
0
4 Brooklyn Center Pere Thursday, May 2, 1963
40
felt about village services and at-,ery ineeting of the commission,
titudes toward industry. The sui° representatives of organizations
AMM vey pointed out several problem interested in commercial activity
Ind. Dev. CUM
s ,areas which call for further stud:. presented information. It must be
Of primary interest to the co„l ;noted that much needs to be done
r ,toward the promotion and devel-
mission has been the proposed ur opmerit of newt and existing Indus-
Village Council Lan community plan for Brook lyn Center which the commission try. k?robleri areas have been rec-
feels should be expedited by all ognized and are under study for
By ROGER MA TiMIE1E&i ;means. One of the methods was possible solution.
At the end of a busy first year to inform the citizens of the plan! The commission is starting its
for the Industrial Development and to further this purpose, the second year with renewed enthus-
Icommission, the report of t.he!mt. of the urban community iasm and the hopes of attracting
Year's activities was presented to along with descriptive literature new and desirable industry to
;the village council. To approach was displayed at Brookdale and Brooklyn Center,
the problems of industrial devel- at the Brooklyn Center State;
Sank. The model is normally on!
opment, the members felt that itidispiay at the Village Hall.
,was necessary to familiarize them-~
selves with the land zoned in-; A considerable amount of tile;
,dustrial and commercial in Brook- coiaimission's first year activities
!lyn Center. The entire commis-!have been directed toward obtain;
ision took a tour of the village and ling background information t)n..
,as a result:, a catalogue shovnnglBrooklyn Center's industrial ae-
?the size, location and other perti-'tivity and potential. At nearly ev-
Inent information on each of they
available tracts was developed,!
iEach commission member was
!furnished with a cclpy of this ill-'.
formation as well as having it!
available at the viIiage'hall.
It was found that much of tht=;
land in Brooklyn Center that wa ;
zoned industrial or commercial;
and was vacant, was in fact bein;
held for speculative purposes aat
prices that appeared to be quitei
unattractive to prospective buy-
ers.
John Nordberg, village assessor._
who was invited to appear be-',
fore the commission, informed us'.
that the industrial land was a,*-
:sessed and taxed at a rate similar
to that of other property in the=
area and not based on the asking
price. It has been difficult to r;>-
Main interest in Brooklyn Center,
industrial properties because of.
the speculative prices.
To determine the present busi-
ness atmosphere in Brooklyn Cer.-
!ter, an industrial climate study,
;was conducted by the commission.,
'Ali the businesses and industries;
,in the village were personally
contacted by the members of the j
commission to determine how they
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Brookivn Center Pre.~
Thursday, May 16. 1963
Notes On May Brooklyn Center
►ndustria/ Development Meet
EDITOR'S NOTE: The follow- opment commission, the orients- In addition, be, skouid be apprals-~
ing article was written and sub-1 tion of new members was con- ed of business developments,;
imitted for publication by a mern- ducted by the commission secre. philosophies and technological act
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bee of the Brooklyn Center In- tar}, Ernee McArthur. It was ex-' vanccments as reported in the newspapers, trade journais and.
idustrial. Development commission, plained that for a member to be:business magazines. The consensus,
!The article reflects some of that properly oriented. he should ree-iof opinion was. that to be a goad;
commission's thinking an helpinh ognize the purposes and accom-'commission member, it is neees-
!potentiai manufacturers and busi- plishments of the numerous civicsary to assume the responsibility
inessmen to locate here. 4 of self orientation along these;
(organizations, citizens committees. line,.
At the May meeting of the;.and governmental functions that,
Brooklyn Center Industrial Devei-pare at work within our village.
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f
The commission next considered,
some of the typical problems en-
countered by a prospective busi
ncss attempting to locate ini
Brooklyn Center. One of the ma-'
jur problems is to obtain a suit-
able tract of land in a favorablef,
location at a feasible price.
To the casual passer-by, this
Might seem to he insignificant.i
sinew there are numerous -sites of
:substantial size and attractive 1.)-}
cation. The prospective buyer,
however, is soon to learn that
these are for sale at speculatory
iprices ranginc from $25,000 to
1$40,000 per acre. The experts ex-
plain that this practice js
foster- by taxes being levied on the
;value of the land as undeveloped.
,without improvements such a,;
streets. water and sewer, instead
`of levying taxes on the asking'
price. j
The prospective businessman'
who has found a suitable site at al
rea!~onable price is then quite
probably faced either with a re-
zoning procedi.re or the necessity
of obtaining a "special use per-
!
ft is in this phase of negotia
{lions with the Planning comma;
!Sion and the Building Inspector'si
joffice, that the prospective busi-!
nessman may become confused by
.not knowing specificalP. whatf
!points must be satisfied. with eac.hi
(group- This confusion can often
$e costly in terms of architectural
'fees or lengthy time delays, caul-)
ed by having to reappear at sub-l
sequent P l a n. n i n g- commission;
meetings with revised or addition
~al data.
In an effort to help prospective;
businesses circumvent this typey
°1 nred'eament. the 'n?ustrial Dp-
velopment commission hes sp-
pc'nted a special fact - finding
committee to prevare and subm,t
a propored, detailed outline ecv-
ering the various nrocedltres,
ordinance provisions. r e q u i r e-
ments, stipulations. etc., that are
^e-Vnent to estab:ishing a busi-
ness.
-his check list could then be
distributed to prospective business
representatives that are not al-
ready. familiar with the process'
of locating a business in Brook-
lyn • Center.
The Welcoming committee of
`the commission called on two new
ibusiness establishments to official-
ly welcome them to Brooklyn
Center. They are Roy's A & W
!Drive-In at 6837 Osseo Road and
the Maranatha Home for the Aged
located at 5401 69th ave. N. The
jwarm reception extended in bath
'instances, convinced the commit-
tee that the official welcome is a
gratifying public relations gesture.
A report from the Contact com-
mittee noted the impending frui-
tion of nearly a year-long effort
to locate a new business in the
village. It is expected that the
public announcement will be
made within a few weeks.
The meeting was concluded UY
a commentary from the chairman
"that we in Brooklyn Center are
truly fortunate to have such a
beautiful community, and must
make every effort to keep it that
way.
Brooklyn Center Press .
Thursday. October 10. 1963
to
InIdustroial Commission
Asests Wheels in Motion
?.Members of the Industrial Development commission heard a re-
,port from chairman Eel Burt: on the development of the Earle
Brown farm at the October meeting.
Burt is that group's representative to the village liaison com-
imittee formed to meet with the University of Minnesota on the
farm's future development.
Dallas Lawrence was selected as an alternate representative.
The interest of the University and the village in the farm is
basica'sly the same, to develop the area in the most feasible way
consistent with established plans.
A feasibility study is being conducted by the University as to
whether the property could best be disposed of as a whole or in
parcels.
Since the Industrial Development commission is vitally inter-
ested in the development of the Earle Brown property, the com-
mission will have a representative at all future meetings.
The commission discussed the steps it muFt tape to prepare
for the development of the Earle Brown farm. One of the most
important items was felt to be a brochure which would pre-
sent facts and figures on Brooklyn Center to prospective firms
interested in locating in this area.
To start such a program, chairman Burt, appointed Harry* John-
son, Far', Rydberg, and Frank Karnpmeyer to determine the items
to be included in the brochure and to attain the information for
ti-,c brochure.
The commission discussed the meaning of an "equitable" or
"good" tax base. Since a tax base is an important consideration for
industrial development. it was felt that the commission should be
better informed on this sub;ect. To detextrine Brooklyn Center's
position with respect to a tax base, Mrs. Don McArthur and Earl
Simons were appointed to report this information at the next
meeting.
Dallas Lawrence of the contact com nittee reported on the
firms contacted for possible location in Brooklyn Center. He also
reported on various ne•,v businesses that are in the process of lo-
eating in Brooklyn Center.
Because of the confidential nature of tl;is information, the
public will learn of these new businesses only when all details have
been completed and publicity releases made to the news media.
Several members noted other firms that might be contacted for
!possible relocation in Brooklyn Center.
The establishment of an Existing Businessman's committee was
discussed. It would be helpful to the commission to have an ex-
pression of opinion by the readers as to whether such a committee
would be u.:eful to the businessman in the community.
The committee could serve to act as a liaison between the
businessmen and the village government and aid in the solution
of mutual problems. Please send any comments to the Industrial
Development commission, village hall.
The commission meets the first Tuesday of each month in the
village hall.
The next meeting is No,.,-. 5 and the public is invited to attend
this as well as any future meetings. The commission would appre-
ciate suggestions and comments.
•
Brooklyn Center Press. Thursday. November 31. 1963
tlustrial Development Commission
Brochure on Vinage in the Hopper
ro prepare for the development., At the group's meeting held
the Earle Brown farm, , the In-! Nov. 5 Harry Johnson, Earl Ryd-
strial Development commission lberg and Frank Kampmeyer re-
directing action toward a bro- ported on a proposed brochure
are which will promote the layout, and was instructed to meet:
z~a as a desirable location for with Northern States Power'l
lustriai and commercial firms. (NSP) company to discuss the?
-"soon to be available Community
;Fact Survey published by NS?;
to be sure that no conflict of in
Merest or duplication of material;
exists.
The descriptive material still
needs to be written for the bro-
chure, but. the commission hopesl
to have it completed in time to
;aid in the promotion of the Earle!
;Brown property.
Earl Simons presented a pre
liminary report on the tax base(
;study his committee is conducting.1
,Much information relative to
taxes has been gathered and a
final report will be compiled for'.
presentation at the next meeting.1
A revision of the village ordi-I
nance concerning the Industrial
Development commission was pre-i
sented to the members. The pro-;
+)xsed amendment provides a 15-i
member commission, three com-,
mission members to be appointed;
by each of the council members
and the terms of office to coincide.;
The purpose of the amended ordi-`
nance- is to provide continuity of
!the commission since a maximum':
,of six members can be changed,
in any one year.
Contact committee chairman,]
,Dallas Lawrence, reported Osseo-
Motors will locate new facilities!
ion Osseo Road in Brooklyn Cen
ter at 68th ave, N.
Final approval of the proposed;
;plans has been given by the coun-
Icil. The Industrial Development!
~c,ommission has been actively pro
moting the location of this firm
:in the community and publicly
wishes to welcome them. The con-
tact committee also reported on
several other firms. that are very
interested in Brooklyn Center for
commercial sites.
Robert Oslund of the liaison
committee reported on the Plan-
ning Commission's study of the
village conducted by Tom Hodne,
community planner. The village
will be divided into six neighbor-
hood groups to study problems in
these areas.
The next meeting of the com-
mission is Dec. This and all
meetings are open to the public.
The commission invites your
comments and suggestions.
BROOKLYN CENTER, MINNESOTA. THURSDAY, JANUARY $3, 1964
industriaI Commission
Suggests Coordinator
The need for a planning-indus civic celebrations and brochures.`
trial development coordinator was It was pointed out the third com-:
discussed by the Industrial De- munity was by far the most suc-1
velopment commission at its last cessful in its industrial develop-;
meeting. ment program,
Trustee Phil Cohen pointed out With the appointment of three
to the group that the Earle Brown new members the commission
farm area will open a large new membership is brought up to its
area for industrial development full complement of 15 as provided
to Brooklyn Center, and to prop- by ordinance.
erly promote the village's interest New members include Robert'
in the area it may be necessary to Ullestol, Bill Hanson and Arthur
'have a full time village employee Gustafson.
:for this purpose. Th a Industrial Development
Frank Kampmeyer was appoint- commission is studying specific
ed to head a committee to investi- industrial tracts as to their poten-
gate the promotional activities of tial development and the owners
suburban communities in attract- immediate plans for the property.
ing industrial and commercial de- To investigate the next tract, a
velopment. committee of Marshall Jacobson,
Those on his committee include Bob I.illestoi and Bill Hanson was
Robert Oslund, Ernee McArthur appointed by chairman Ed Burt.
and Ed Burt, ` Tne parking problem in the
Kampmeyer presented a pre- area of 50th and France was dis-
,liminary report on three commu-;cussed and Wayne Lubrecht was
Inities at the January meeting. ;appointed to study the situation
Of the three, one had little orland report to the next commis-
no available industrial land. An-ision meeting.
other only answered inquiries and Current problems are as much
the third was actively promoting
lindustrial' anal commercial devel-la concern of the Industrial De-
opment. This community has a velopment commission as the de.
14-member industrial development velopment of new commercial es-
commission and in addition a full tablishments.
time planning director and assist- Interested businessmen and the
ant planning director. public are cordially invited to at-
Advertising is c o n d u c t e d'tend the next meeting Tuesday,
through signs, newspapers, tradeFeb. 4, in the council chambers
publications, parade floats forlof the village hall.
BROOKLYN CENTER
INDUSTR IAL DEVELOPffNIT C0MMI SS I^N
December 3, 1963
To: industrial ~)evelooment Commission
From: Tax Base Study Committee
Earl Simons
Ernoe McArthur
The purpose of this report is to attempt to answer the fol lowing
questions as dosed by the Commission:
1. \y/hat is a definition of a good or equitable-tax base'
2. 'Ilhere do we stand in Brooklyn Center, what tax base do we
have now?
3. What do we need on the Earle Brown Farm?
4. That has been the MiI I Rate In 10 years In say: New Hope,
Crystal, Brooklyn Park?
Brooklyn Centerts 1963 Assessed Valuation is as fol Iows:
Industrial, Commercial, Personal Property, Utility .29%
Residential . . . . . . . . . . . . . . . 71`0
We were not able to find that this information was available from
any source on other municipalities; therefore the municipalities
were contacted and this ratio was discussed. It was Interesting to
find that those contacted were very interested in this ratio, but
hadntt made a study to find out how they might com?are with other
areas. The general consensus was that It aI I deoended on what you
wanted for your community, referring to Edina. Edlnats village
manager did indicate that this oicture Is somewhat changing.
GOiden Vai ley,
~Industriai, Commercial, Personal Property, Utility .40a
Re S Ide n t ial . . . . . . . . . . . . . . . . . . . . . . 60%,
They feel this ratio 1s very good, and of course this was indicated
in their news releases in regard to one school di str ict for Golden
VeI Iey.
Crystal
Industrial, Commercial, Personal Prooerty, Utility 20%
Residential . . . . . . . . . . . . . . . . . . . . . . . 80%
The 20% represents chiefly commercial as they have little or no
industrial. It was their feeling that mufiple units helped their
tax base considerably.
0 St. Louis Park
industrla . Commercial, etc• . • 38%
Re sIde ntIaI . . . 0 . . 62%
Tax (',a se -2-
R i c h f i e l d ~,~r
I ndus fr i a l, Comm-c ! a l etc, • o e r 3~
Residential r . . . • . . 70°,;;
It must be noted, that of the 3 6/6a represents apartment
buildings.
Bloomington
IndustrfaI, Commercial, Etc. . 27%
Residential . . . . . . . . . . . 73%
They are striving for 50%. Bloominpfcn )ust made a comolefe tax study
showing Projected figures for next five years taking into consideration
all expenditures for schools, parks, roads, municipal buildings etc.
and then showing a projected increase in valuation to meet these
costs in new homes, new industry etc.
Although the study is complete, it will not be rublished until January
1964 and they would not want the projected figures released until
their nubl ication is released.
The study also shows what the mill rate should look like If the
increases correspond to their projections.
This study was made by the Industrial Committee of the Chamber of
Commerce with the assistance of the City of Bloomington and their
10 industrial Development Commis si on; and took a number of months to
comnlefe. The study wi 1 I be included in the promotional brochure of
Bloomington.
Brooklyn Center tax exempt property-churches, streets, narks and
schools make up 311/'c of real estate not taxed. In a 1962 news release
Richfield reported 401 of the property in Richfield is tax exemot, this
compares with 6% to 20% in other suburban communities.
In reference to comnar i ng mi I I rates, it was our feel Ing that history
means nothing when comparing developing communities. Budgets being
adopted are increasing in dollars, but this may not be raising mill
rates. listed below is the mill rate history in the last five years
In Brooklyn Center (vi I lage) and State and County rates:
State Non
VII tape County Homestead Homestead
196'5 50.51 y
1962 50.12 47.23 8.31 66.85
1961 43.54 45.40 6.39 15.51
1960 48.26 41.36 6.84 13.85
1959 51.00 40.14 8.10 14.32
c noo s r c s7Non -Aq. ? No. 2$n- No M No. 280 No. IT-
1963 ~ 149,hlus *225.06 4, 134. plus
1962 154.92 184.62 219.00 131.09
1961 158.69 179.99 211.59 134.00
1960 139.20 163.00 189.64 123.53
1959 120.10 157.64 167.56 114.70
School mi I I rates wi I i be published in two weeks.
Tax Base
-3 -
of Listed below are municieal rates- (1961 Levy Collectible irr I)A52)
Minneapolis . . . , 84,11
St. Paul . . . , 83.38
Bloomington . 47438
St. Louis Park 4 . .42.68
Edina . . . . a , . . 28.32
Brooklyn Center . 48454
Crystal . 44,64
Hopkins . 52.02
Cye ask the reader to bear in mind
that tax rates are not al%va;;s
completely comparable becaRge of
)
variations in assessment procedures.
As an example of the variations noted above, Richf ie lds(oopul at ion
42,500- orojected max. 45,000) budgets for the coming year is
one and one-half to sixtrhil lion)(the make-up of a budget again is
handled differently in communities). They have an Assessed Valuation
of $21,155,408, and their current mill rate projection is 44.66.
A home is determined to Lave a value of $15,000 by using the Market
Value orocedure. Provision is made that a municipality has option
to reassess every two years. They are now in the orocess of
reassessing, as many imirovements have been made to the homes without
annlying for a building hermit. They determine the "Ful I and True
Value" on a $15,000 house to be $5,000 or 33 1/3 of Market Value.
In Brooklyn Center the "full2and True Valuer on a house valued at
$15,000 in Brooklyn Center is $4,950 or 33`x.
Selling price at time of sale.) B.C. Village
(MARKET VALUE . .
(AP"RASED VA11UE . . Cost to replace dwelling. ) Assessor
Of interest to you might be the following valuation figures, as taken
from a September, 1963 news release from Hennepin County Auditors
Of f ice.
1962
1963
valuation
valuation
Increase
Brooklyn Center
11,197,840
1197279238
529,398
Crystal
10,071,519
1006969800
6259281
Golder, Valley
16,351,975
189831,624
1,479,649
Robbinsdale
7,1429274
722200278
789004
(Tom Hcelne was contacted and he indicated they are just in the midst
of doing almost the same thing as this report - they are calculuating
the use of the land In the categories -vacant land not oresentiy used
rand further study as to its recommended usage..)
Tax Base -4-
FULL AND TPUE VAI. U[
Do you recall~r~hC nv_-ws release? . ."That's a $12,000 house worfW'
The example giver was houses that cost within $100 of each othe'- 11
four Twin r i f i c s k, ti,tr b,
White Car Ful i and True Value $4,800. $31~-`,- 0
Bloom:n~,l~o;. . rr n rr 4,100 ?6~ .50
Coon Ra•); cis 3,650 221.55
St. Pau' parr ~ . rr rr n 3,283 261.09
Brook l yll (;e r ter
(as given to us E 7177age
Assessor- Anoka School Dist.,,.,,,.,
"HERE'S P-M ASSESSMENT IS FIC'S ED" MinneapoI is r""viorn. Trib. 8/62
Vii lace assessors do not nut homes on the fax roils at their actual
market value. Instead they use a percentage of the actual value
cal led the "assessment ratio." In Hennenin County these ratios have
differed from community to community. But as a result of yesterday's
action by the County Board of EouaI Ization, each assessor wil l have
to use the ratio, 30.5`x. This would mean that a $I5,000 house would
be valued at $4,565. This is called the "full and true" value.
Next corms the "assessed valuation." The assessed valuation is a
percentage of the full and true valuation set by state statue. At
present It is 40 percent for non-homestead oroperty. Aonlying this
percentage to the $4,565 figure would dive an assessed valuation of
$1,826 for the $15,000 house. However, if the house qualifies as
a homestead, the assessed valuation rate is 25 Per cent for the first
$4,OCO of full and true value and 40 percent for the rest. AonlyIng
these ficsures would give an assessed valuation of $1,426 for the
$15,000 house. Since the assessed valuation Is determined by state
statue, differences In valuation of similar property in different
communities prise primarlly from two factors:
I. the original estimate of the property's worth by the
commun i ty assessor, and
2. the assessment ratio for that community.
(presently goal for full and truevalue is 1/3 of market value)
is
Tax Base
0
WE VEr`'UE
rpare tte and Liquor Tax
Street Aid-Street Ma intenanee
Permits, Licenses and Fines
Recreation Receiots
$75,000
17,000
65 , 000
6,850
Public Utilities Rent & Administration 9,000
Park Rent 1,480
L iciuor Sur of us 800000
Clerican & Engineering Fees 5C,000
General Fund Surolux
$304,330
i ')64
Fudge i
$78,OC0
1 7, 000
65,000
8,285
8,700
900
1 00, 000
5 0, 000
30,000
$357,885
EXPENDITURES
General Fund
$682,366
$7321,404
Parks
73,139
115,150
Poor Re I ief
20,044
1 1,745
Fire Relief
11,086
11,745
Park Bond Redemption
35,161
34,400
Certificates of Indebtedness
14,781
13,100
State Loan
672
1,502
P. E. R. A.
23 , 739
26,735
County Parks
4,479
4,385
Total Requirements
$865,467
$951,166
Less Estimated Revenue
304,330
357,885
Taxes Required
$561,(37
$593,281
Mi I I Levy
50.12
50.51
1963 Mill Value -Per as
sessor . , .$11
,745
In a 6/63 news release Edinars budget
was $1,490,939
of which less
than half- $773,218 came from property tax.
Edina indicated they have a surplus of
a,),)rox. $200,0
00 from liquor-
R`chrield . . . $4CC,000. (Edina pr
esently having
a oooulation of
33,000 with a projection to 55 to 60 t
housand.
State Financial Assistance to Local
Governments
The State of Minnesota levies some tax
es which are sh
ared with local
governments. Some of these taxes are
aooortioned on
the basis of
noouIaf1on. Much of this money finds
its way into the budgets of the
metroool i tan area local governments.
CIGARETTE ANN) LIQUOR TAXES
Cr.e '7ourtn of-7 e-s ate tax on cigaret
tes Is credited
to a special
fund for aonorflonment to counties, ci
ties, villages,
boroughs and
urban towns. Thirty Percent of intoxi
cating liquor t
axes (extent for
15' increase voted by the 1959 legisla
ture and
extend
ed by the 1961
legislature) are credited to a s imi car
fund for the c
ities, vi l cages,
and boroughs, and to the counties for
distribution to
their towns.
The f unds are aonor t ioned by the state
auditor on the
15th day of
February and August of each year. In
1961 the oer c
apita distribution
-5-
BROOK LYN (7 ENTER
BU')r,E T PrrP
DEVENUE: AND TC'T/ L LEVIES
1963
Budget
Tax Base
-6-
was $1.55 for the cigarette tax and $1.10 for the liquor tax,
0 BANK E XC I SE TAX
The bank excise tax is I1.4oy of which the municipal share i
It Is levied against the net rece lots of 'al I of Minnesota( na; erial
and state banks. It is col lected by the state and returned to the
county from wh is h I t was col lee fed. The c cunty and I for then
al locates the tax ca id by each bank to the taxing districts in which
the bank is located, di vi ding it among them on the same basis as the
persona} oroperty tax.
EMPLOYttNIT AGEtiC: Y TAX
The employment agency tax is levied by the state. Those private
agencies handling only female or only male anolicants nay .$75 a year..
those handling both are charged $150 a year. Fifty nercent of each
fee Is returned to the ool itical subdivision in which the agency Is
located.
Fire Marshal's Tax
There is a fire mar shalts tax on premiums oaid for fire and extended
coverage insurance which Is returned to the local units for the
insurance written on oronerty within its borders or fire
jurisdiction, It must be used by local fire de oar tments for specific
our poses such as nensIon s or reI ief.
STATE I Nr:0ME AND '-i I GK''AY USERS' TAXES
The state income tax is used for local educational pur-)oses, and
oortions of the highway userst taxes are returned to counties and
municioal isles over 5,000 for street and road use.
(Rener t of Study Comm! ttee No. 2- Counc i I of hkfroool i tan Area
Leagues of Women Voters of Minnesota- June, 1963
~*TAX ("OMPARISC'N" ?/\SEr) ON DOUBL IA.K, ASSESSED VALUE- No. 286 (Earle Brown}
Comparison
ASSE SSE, D 5T/"TE & TAXES MI L L
VALUE FED. AID LEVIED RATE
1963 2,729,864 51-7,000 596,100 219.0
urn 25 3,400,000 514,000 639, 100 188.0
up 50% 4,000,000 470,840 682,260 170.6
up 75% 4,700,000 425,270 727,860 154.8
up 100% 5,400,000 387,240 765,860 141.8
Comme nt s
S11 r- f figurers can only be estimates and acrura?e only to an
:.rknown degree, some of the figures were rounded off.
ry file time our assessed value is doubled, the state aid formula might
aiso be changed.
P;:z ;,"AX Ic:vy for !963-1964 might have been 20 mills lower had we known
tha° 1',,2 state aid 'vould be raised as it was. On this same basis the
retz is the last insFdnce could then be 10 mi l Is lower, 131.8 mi l is,
~,~RD OFEDU"ATIC)N SrHOOL DI5Ti, r T # 286}
• BROOKLYN CENTER INDUSTR IAL DEVELOPANT
CCMT77;ION November 1, 1963
to: Industrial Development Commission (sponsored by State of
From: L r n e e gt,Hrfnur Mecre# ry'} Minnesota-Deoart of Bus,.
SubJect: 7th Annual Industrial Clinic Development-coooerationwith
November 1, 1963- kadlsson Hotel Mpi s-St. Paul Ch, of Comm.
Introduction by William B. Farrell,, Commissioner, Minnesota
Department of Business Development
George Martens, President MI nneaoolIs City
Counc i I
A. Reviewed Mpl s Lower Loop Development from
planning stages. Remarked on cooperative
spirit between labor, business & government..
B. Auditorium scheduled to be completed in
two years. When It is completed, they will
be able to compete with Chicago-San Francis.
co for big league conventions.
HOVE/ IT ALL BEGAN i i . pr. Richard Kozelka(lntroduction to the Albert
Lea story)
Charles Myers, Albert Lea
Jobs, Inc. A. Surveys indicated a 593 gao between jobs
100 shares available to number In the labor market,
T. $100 after Wor Id UVar II. This estimate was
determined by interviewing existing busin-
essmen, exoanslon planned, did the women
plan to return to the kitchen etc.
B. ACTION . . How to acquire new industry and
what do we need? A pattern shoo was needed-
a man was solicited from Milwaukee to
start this business--foundry started
business in an old potato warehouse,
Jobs Building, Inc. C. Built a 11,000 sq. ft. building, it was
expanded to 100,000 sq. ft. by new owner.
They have built nine buildings- sold six-
retaining three,
D. In last 20 years Increased employment from
4,266 to 8,500, yet have only done two-
thirds of job they should have been doing.
E. SUMWNRY . You have a obligation and
challenge to do your part In exoanslon...
you have a goat. COMMUNITY SPIRIT Is the
key to success. Sample 11 regurariy, If
peool a are not Interested-do something,
Know what type of businesses would succeed
in your communify.,,your advantages and
disadvantages. SURVEY . . KNOkx/ . SELL
what you have. C';nWVAJNlrATI UN fT OF
OUGHTNOST IMPC?RT/!I\ICE. 7MLCAT7CN program
is necessary.... a single st-aafe"m"ent by a
citizen can se l 1 or unse 11 a orosoect.
One women's comment in a doctors office was
the deciding factor. REMEMBER i t
doesn't take much .,..MTL CRIP COMPANIES
PICK YOU, YOU DON'T PICK THEM: I t' s
everyone's responsibility-everyone must be
informed.
7th Annual i ndus tr is I C I i n is -2-
DISCUSSION GROUPS: GROUP
Subject:
The Indus tr ie s we
don r t have. Ae
indusTries we have.
~X/h y a n a-Row .
A Communities Under 1,500 population
B . Communities 1,500 to 59,000
r Communities 5,000 to 2 0, 000
D . Communities in Twin C I f y Area
E e7ommuni ties over 20,000 nonulation
After the general assembly, we split uo into
c1rour)s as above. Each group moderator later
summarized the meeting in general assembly.
Group D Communities in Twin City Area. I wi 1 I attempt
to review with you the comments made by the
speakers In this group.,
BELT LINE INDUSTRIAL PARK, ST. LOUIS PARK (private enterer ise )
A. Acquired 50 acres- 20 left to develop.
B. Every utility available- highways and location; therefore
concentrate on narrow segment th at needs the se ser vices and
moderate size sites. SoeculatIve, start building with one
tenant, by the time but Idi ng is completed usual ly at i has been
(eased.
C. Rigid control good zoning ordiance in St. Louis Park-own
ortvate deed restrictions (national firms are putting great
value on these), At the time General Electric located here
there were only two sites available that met their criteria.
D. Lost Ben Prank Iin . . . why? bought land In New Hope Probably
for 10% of their val uat ion.
BLOOMINGTCN CITY NWNAGER
A. Healthy to have enlightened competition.
B. Expansion . . . 100,000 sq. ft. monthly ....60 to 70 million
in last five years.
C. Bloomington was lucky to have dreamers years ago ...the human
element.... EXPOSURE OF MARKET thru Chamber of Commerce . . .
agressive . . . profit motive.
D. Control Data is outstanding industry.
E. Established new zone for a particular industry that wanted a
residential si te. Protected the area around it by special
zoning.
F. Businesses want a SITE WITHOUT A FIGHT.
G. Advantages: I. freeway
2. railroad
3. vzoned and orotec fed
H. Gambled on a 300 acre swamp (Normandale Put in water, sewer,
and heavy roads- assessed against oroperty- proved successful.
Ziegler and John Deere set tone.
) . he On¢ts we
10St.
1. land prices too high
2. architects restrictions too high
3. all weather roads
4. Industr I at Deve lopment Corp. needed to he I p those under
capitalized.
5. di str ibut ion f ie Id wanted to be closer to re tai l
6. no room for he avy i ndus try
7. haventt lost any because WE DII)ItT TRY!
J. Existing businesses very imoortant . . encourage the businessmen
to call office on any gripe. (letter was sent to businessmen
by the industrial Development Commission)
K. Industrial Climate Study . . indicated 67% of fhe present
businesses would expand in Bloomington, if they were to expand.
(Brooklyn Center Is Industrial rIImate Study Indicated 62%)
• 7th Annual Industrial Clinic -3-
HOPK INS
A. Primarily has businesses related to the food industry.
B. Like attracts like. They've looked at what they have, and have
analyzed what firms would like to be close to these businesses.
C. Rail I ines . . municipal services . , Twin City bus
D. Honeywell employs 2,000 people in Hopkins.
E. ti4'Ihat type of industy should you cohcentrate? Talk to your
present businesses, they can give you best indication on
pros nects 10
F. Total employed In Hopkins is higher than their population.
G. Presently have small tracts of land and are concentrating on
office space.
WAYZATA
A. We do not have industry; The people do not want Industry;-:
We have do room for industry. We have just 3 sq. miles.
(Brooklyn r enter-approx. 8.8 sq. miles)
B. We need customers in our shooning area, and have a terrific
interest in what our friends are doing. Go to it!
WEST ST. PAUL
A. A7beTcroom community to St. Paul, with heavy retail.
B. Concentrating on apartment construction. An acre of land
built with apartments yields $9,000 In taxes, whereas an acre
of land residential yields $3,000. (In Earle Rrown School
District- there is one child to every nine units)
C. In the last 8 to 10 months, 11 mi Il ion In construction has been
announced. This lowers the taxes for the retailers, and makes
them happy.
D. Industrial Development Corooration- community type made up
Counc) i -Bus i ne s sme n.
SOUTH ST. PAUL
A. /5 year old community, having a favorable tax rate.
B. Bas icaI ly iIvesfock industry.
C. Thy haven't we been more successful?
I. peo+)le were content to live off of what was here.
2. didn't aid existing industry.
3. personalities of city officials.
4. Chamber of Commerce didn't f fight, stayed neutral. You have
to take a stand and get )n and f ight.
D. Le tter was wr i tten to the national of f ice of one of the it
Industries . . received a reply telling them they receive many
letters daily wanting them to locate in their area, but the
first time they had received a letter asking them "'\VHAT CAN WE
DO TO HELP YOU L I VE WHERE YOU ARE?"
ARDEN HILLS
A. Problem Is trying to sell people on industry, possibly spend
more time turning industry down. Just as happy if industry
locates in another area, but in the same school district as
the it r e s idents.
WACCNIA . . . . 2,000 nopul ation
A. There is alot of unrest in metro. area and they come to smaller
community. Possibly they could get together with other
communities and refer these inquir4s:
MINNESOTA STATE EMPLOYMENT . HOPKiNS rFFi(7E handles five
county area-if you have any ^uestions
on employment . cal I us.
(During general discussion from the floor, I couldn't resist letting
them know that Brooklyn renter was also interested in industry and
relating to them the latest on the Earle Brown Farm)
-~:a:
7th A(\I,IUAt INDUSTR IAL r~L INIC -4-
0
STATEMENTS
under 1,500 . . .
1,500 to 5,000.
5,000 to 2 0, 000
Twin City Area
over 2 0, 000 . . .
DR. BORCHE R T . .
leadership has to be more active- service organizat-
ions must be retained or organized- important to
retain local doctor and have a hospital . .
represented by speakers Onamia, New York Mi l Is,
Clearwater, Braham.
Future looks good. That is self assessment,
understand your community- execute exciting program.
Many firms are looking to locate in smaller
communities: Represented by speakers - LeCenter,
Granite Falls, Glencoe, Glenwood, SBA
Emphasis should be out on researching themselves,
what Industry can }hey support. Local InIfatlve
. . leave no stones unturned Industrial
development from an area point of view . bring
industry into state and all will benefit.
Represented by speaker s- L I f f le Fa I I s, LaVer ne,
Hibbing, Fergus Falb, wotfh1ngton, SBA
Affected by economics and existing facilities .
. industry wants a complete package, they do
not want to waif. Stressed importance of existing
industries. Gamblinq by building physical
facilities.
Discussed the Taconite Amendment. . Austints
problem is that they are only 20 miles from Albert
Lea. Zone for expansion. Don?f cencentrafe on
new industry so much have you forget the existing.
.Ten years from now the larger communities with the
highest growth rate will be those that have
emohasized good planning . . with a planning
commission and good communication so everything is
coordinated (street paving program- real estate
developer - school board) many communities whose
local governmental units are no longer rational will
have to face up to the question of consol idation or
co -operation.
WM. FARRELL . . . Di scussed the Depar tment of $us ine ss Deve Iopment
and it's six departments and their responsibilities.
(department heads discussed their problems)
copies of "THIS IS THE DOLLAR THE TOURIST SPENT"
available) It was called to our attention, the
five causes of pockets of depression are:
depletion of natural resources, market changes,
consumer demands, automation, and world trade.
FACTS: NOV/ W!HAT$.. Uoner Midwest Research and Development CouncII
Goodr ich Lowry, (Mi nn. N. Dakota, Montana, S. Dakota, MX/ Wisc.
(member of Bd. of/and upper Michigan ) . . free enter or Ise framework
Directors & co- /conceived in 1958 (projections to 1975) for the
chmn. Bus. & Ind./purpose to help accelerate economic growth in this
Action Committee./region- to provide more and better jobs for more
oeoole. Discussion of the HIGH COST OF NO GRCII/TH
or GROWTH THAT DCP.S NOT MEASURE UP TO CUR PrTENT IAL .
(cooy of speech available, if you would like to
read the total picture)
7th Annual I ndus tr is I C I i n is -2 -
DISCUSSIC-t~,1 GROUPS: GROUP
Subject:
The industries we
)on't--Fave, the
i ndusTr ie s we have.
NY/by and-'Row.
A Communities Under 1,500 population
B Communities 1,500 to 5,000
C Communities 5,000 to 20,000
D . . . Communities in Twin City Area
E . . . Communities over 20,000 r>onulation
After the general assembly, we s of it up into
groups as above. Each grouo moderator later
summarized the meeting in general assembly.
Group D Communities in Twin City Area, I wi I 1 attempt
to review with you the comments made by the
speakers in this group..
BELT LINE INDUSTRIAL PARK ST. LOUIS PARK (private enterer ise )
A. Acquired 50 acres- 20 left to develop.
B. Every utility available- highways and location; therefore
concentrate on narrow segment that needs these services and
moderate size sites. Speculative, start building with one
tenant, by the time building is completed usually all has been
leased.
C. Rigid control good zoning ordiance in St. Louis Park-own
private deed restrictions (national firms are putting great
value on these). At the time General Electric located here
there were only two sites available that met their criteria,
D. Lost Ben Franklin . . . why? bought land in New Hope probably
for 10% of their valuation.
BLOOMINGTCN CITY MANAGER
A. Healthy to have enlightened competition.
B. Expansion . . . 100,000 sq. ft. monthly ....60 to 70 million
in last five years.
C. Bloomington was lucky to have dreamers years ago ...the human
element..,. EXPOSURE OF MARKET thru Chamber of Commerce . . .
agressive . . . prof it motive,
D. Control Data is outstanding induhfcy.
E. Established new zone for a partidwlar industi y that wanted a
residential site. Protected the area around It by special
zoning.
F. Businesses want a SITE WITHOUT A FIGHT,
G. Advantages: freetNay
2. railroad
3. vzoned and orotec fed
H. Gambled on a 300 acre swamp (Normandale Put in water, sewer,
and heavy roads- assessed against property- proved successful,
Ziegler and John Deere set tone.
! . The one's we los t :
1. land prices too high
2, architects restrictions too high
3, all weather roads
4. Indus tr i al Deve looment Corp. needed to he (p those under
capitalized.
5. distribution field wanted to be closer to re tall
6. no room for heavy industry
7. haven't lost any because INE DIDN'T TRY!
J. ExIsting businesses very !moortant . . encourage the businessmen
to call office on any gripe. (letter was sent to businessmen
by the Industrial Development Commission)
K. Industrial Climate Study . Indicated 67% of the present
businesses would expand in Bloomington, if they were to expand.
(Brooklyn Center's Industrial Climate Study indicated 62%)
***Wgo°**eyro*;.!.**-il**,I%**~~k+N ,>>k+k~k~kN~+k~kM~~kN~~k+l►*+k*
•
INDUSTRIAL, DEVELOPMZNT COMMISSION
OF
Brooklyn Center. Minnesota
Preliminary Study of the Pros and Cons of an
Industrial Development Corporation in
Brooklyn Center
AIWIst 49 1963
•
0 PLANNING FOR THE FUTURE
~~*~***~~r+r*e*w~**e*e**s+r+*~ese*+~***~~**~*e~+r**+w*e*
To: Brooklyn Center Industrial Development Commiss:.oa
From' Ernee McArthur and William Leeler
Subject: Preliminary Study of the Prosand Cons of an Industrial Development
Corporation in Brooklyn Center
In approaching this subject the following contacts and resource material was
used"
1. Opinion of Village attorney, Arlen Christenson.
2. Martin Poland, Northern States Poser
(Recommended contacting U. S. Department of Commerce for a copy of
"Development Corporations and Authorities." which is reports, statutes,
and other materials on State and Local Development Corporations and
Authorities. This report was printed for the use of the Committee on
Banking and Currency.
3. "Guide Book For Commune Industrial Development"- Minnesota Department
of Business Development.
4. "How to Organize an Industrial Development Corporation"- U. S.
Department of Commerce.
5. "List of Industrial Development Corporations in Minnesota and Key
people to contact." Minnesota Department of Business Development.
6. West St. Paul Industrial Development Corporation, James Lennon, Secretary.
(One of the newest corporations in Minnesota)
79 "Prospectus" and introductory letter of West St. Paul Industrial
Development Corporation.
6. Bloomington City Manager, Ray Olson.
9. Brooklyn Center J C member.
10. Richard Jesberg, Prudential. Insurance Company (discussion in regard to
Albert Leas's success)
11. Gil Engdahl, Accountant. (interested in serving in an advisory capacity
if a corporation were formed.
0
-2-
What would be the relationship between the Indust;x: 'r~•;,:~~'-1*_,.a1x
and a Corporation? The following questions were investigated by our Village
Attorney:
1. Can the Village create an Industrial Commission Corporation as
a nonF-profit enterprise?
2. Can the Village's credit be used to issue bonds for such a
development corporation?
3. Could such a corporation exercise any rights of eminent domain
through the Village?
In the Attorney's opinion, all of these questions must be answered in the negative.
If members of the Commission were interested in forming a Corporation, we would
do so as private citizens, possibly with other interested citizens participating.
A copy of the booklet, "Development Corporations and Authorities", was received
and it includes a wealth of information, which would be helpful to a Commission
as well as to a further study on a corporation. The section on Local Development
Corporations in Minnesota, was a report to the SBA, February 1958, prepared by
Ralph S. Fjelstad, Congdon professor of government, Carleton College, Northfield,
Minnesota. His report included the following:
Part I:
Why these development corporations . . . • .
Nature of development corporations . . . • . • . . • .
Sources and adequacy of funds . . . . . . . . . . . . •
State development corporation . . . . . . • . . . .
Evaluation of local development corporations . . . • • • . •
Part Ut
The Albert Lea story . •
Jobs, Incorporated • . . . . . . . . . . . . • • . . . . . .
Jobs Building . . . • . . . . . . . . . a a . . •
Evaluation of Jobs and Jobs Building . . . • . . . . .
Part III:
Activities of local development corporation (46 communities discussed in
alphabetical order)
Copies of the "Evaluation of Local Development Corporations", as listed above in
Part I have been mimeographed and attached herewith.
In regard to the Development Corporations in Minnesota, one of the newest formed
and located in the metropolitan area is West St. Paul. We contacted James Lennon
of the Chamber of Commerce, who is also the Corporation secretary. West St. Paul
preesntly has a population of approx. 15,000 with a potential growth of 30,000.
1"zPir Industrial Development Commission consists of 18 members, including two or
thrse sub-acmmittees consisting of FREEWAY and SEWED AM WATER. (You can see their
problems are much different than ours.) Promotion of the City was handled by
-mother section of the Chamber. They felt that more could be done to promote
development so nine men were appdnted tostad.y the pr,;s c:K:d wszr. a orr-Ozotlon,
and the type of corporation to be formed. These nine men then beLr.mo t.hr;
Directors of their Profit Corporation. Sim,zltaneously, as that' are selling their
stock they have purchased a:ffve..aare site and have an option on an edditioral
five acres. What are their feelings after a few months in existence? Miey feel
they have been fairly successful, It has taken a lot of work and money, but ^.t
is too early to evaluate their success. They do feel the Corporation has been
•1 r,
very helpful for the spirit of the community. (Their Corporation is authorized to
sell 2,000 shares of Common Stook at its par value of $100.00 per share.)
In our contact with Bloomington we inquired whether or not citizens of Bloom-
ington haq,considered forming a corporation. It was felt that finances could be
obtained from normal banking facilities and a corporation was more important to
a central city. Also, that there were new and expanding businesses in the area
and it depended on who sold them on their community..
We inquired whether or not the local J Ole had considered the possibilities of
a Corporation. We were told this sort of promotion was possibly better geared for
a senior Chamber of Commerce.
We visited with Richard Jesberg, who is most familiar with the Albert Lea
Corporation. We did not contact Jobs, Ina in Albert Leary as we did find the
complete Albert Lea story in the booklet on corporations in Minnesota.
SL404ARY-9
It would appear afther this preliminary study, that if there were sufficient
interest among' the members, a larger group could be formed, apart from the
Commission of course; and include other interested citi%ens for a further study
as to whether a Corporation is needed in the Village at the present time. If a
Corporation were formed, this Committee would then be prepared to serve as
Directors,
-4-
An immediate reaction might be, CW14y do wee ne61 a Vo--poratiOL.? Wo h .ve t"o
wait until more is known on the disposition of the Earle Brown Farm." <<rt
actuality, there are a number of tracts of laa. amilable for development. If
a Corporation were successful in purchasing a tract of land, might this not be
helpful in stablizing land prices throughout the Village? One of the
questions we should ask ourselves is "Are we successful enough as a Commission
to promote the development of Broolraya Center? Or would a Corporation be helpful
to the Commission to streigthen community spirit and stimulate development?"
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EtiALUATIO"N OF UrAT, DEVET-Gaff CORPORATIONS
(Local Development Corporation isn Minnesota- By: Ralph S. fjelstad, Gc.,gdon.
professor of go-rer.Ynne r;O
Carleton College, Northfield; Yv nn.)
February 1958
Local development corporations have been successful devices for encouraging the
growth and mansion of business. No other conclusion is possible from the survey
conducted as a part of research for this report. These organizations have raised
funds to expand local businesses or to bring in new enterprises; they have increas ed
the payrolls of their communities. Even where the development corporation has not
been able to get a nets or expanded business into the community, the corporation us«•
ually provides a basic leadership for industrial growth and progress. Committees of
chambers of commerce or other civic groups seem to lack the dedication and zeal
which attaches to development corporations. As a generalization' therefore*
communities have managed better business development after the creation of such
development corporations than seemed possible before. This becomes one of the
great pressures ofor other cormdm-hies being interested in such organizations.
It should not be concluded, however, that development corporations are indispenw
sible to business eqmnsion. Some-communities achieve results without them. Thus
the Duluth Industrial Bureau has been very successful and no corporation is involved..
This bureau was organa ed on a 5 year trial basis in June of 1945, when G130,000
was raised to underwrite the program. The industrial director writes that.-m
We offer a wide variety of services in the interest of attracting new business'
developing new home industry, and assisting local industry with its problems.
We do not make loans but we do make every attempt to secure private financing
for any project which is considered economically sound for Duluth.
This so-called Duluth plan has brought great progress to that city. 'Since the
creation of the industrial, bureau business construction has totaled $33,254,562;
6,009 more people are working; 301,more rates businesses have been established;
there has been an increase of x%467, 282, 798 in bads debits; there are 18,356 more
telephones and 9,342 more electric customers; there has been an increase of
$58,983,000 in buying power. Not all of these gains can be traced exclusively to
the Duluth Industrial Bureau but neither has there been any kind of local industrial
development corporation assist.
It could be argued that Duluth is a large city and can use the device described
but that such wo uld not work in a smaller community. However, there are many comm-
unities in Minnesota which have used the methods of the development corporation to
secure business expansion without having the corporate device itself. A group of
businessmen in Fester Prairie provided the funds which assisted the otmiing'oX an
a i. cli ncm•, employs.. 50. to" 70-0o9pl.e. The New Industries Committee of
Cokato (not incorporated) has raised over 40,000 to aid in the establishment of a
new industry. Some ti36,000 of this is being paid to about 70 certificate holders
over a period of 10 years at 4 percent interest. Trustees who handle the certificates
have a recorded lien ibn the building constructed by these funds untilit is paid for
by the firm occupying it. Fifteen businessmen in North Branch put up the money
which started an industry employing a large number of people. A Minneapolis firm
raised 530,000 in New London to keep Steel Tanks, Inc., in that community. The
Virginia. Chamber of Commerce has a 160 acre industrial site which it is making
available to industry. The Carrmercial Club in Morristown has managed small loans
to get businesses established, The industries committee of the Bemidji Civic and
Commerce Association raised tP150,000 for the promotion and erection of the Hu-Ply
plant which now employs 80 people. A.group of businessmen in Anoka kept a large firm
in that community by purchasing a piece of land which they then sold to this firm*
The Mountain ?rake Industrial Committee spearheaded a drive to keep Land O=Lakes
growing in their community; this firm then spent 5?500,000 on a new building in which
30 people are employed, Here are specific examples of substantial business improvew
ments in eomununities which have not found it necessary to establish development
-.orporations.
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It is interesting to note that five of thy; communitites mentioned, BoMil i,
Mountain Lake, New London, North Branch, and Virginia, are cities listed by thA
department of business development as having development corporations. None
of them have such organizations. There are many others like these--community#es
which have achieved some measure of industrial growth without the kind of corporate
structure we have been describing. Another one of these is East Grand Forks, from
which the writer received the following comments on the relationship of development
corporations to business growths
We have not felt that the development corporation thing is essential
to the promotion of business. Our experience has indicated that quite
frequently firms which need this assistance are so weak financially
that they are not true assets to the community.
Some of the new businesses which have come into the area have formed
corporations and sold both preferred and common stock which our local
people invest in. This sort of thing has, in our opinion, been much
more successful then the development corporation idea.
Development corporations are so common that the advantages and
novelty.of such an organization have been depleted. I know this is
contrary to opinions that will be expressed by some communities.
The $act that many communities achieve business growth without a development
corporation, as indicated, does not invalidate a basic finding of this study.
It is that such corporations are convenient devices to encourage industrial expans-
ion. There is real evidence that leadership can be attracted to such organizations
which will not flourish without them. For this reason, all others factors being
equal.., most communities are likely to do more with business development by use
of a corporation than without one. Incorporation tends to create a new lease on
life. Perhaps this is reason enough for the enthusiastic support which these
corporations get from the department of business development in this State.
The importance of effective leadership to the success of development corporat-
ions in Minnesota indicates that those which have had the most dedicated and
inspired leadership have been the ones which have gotten things done. The Albert
Lea story would never have happened without the zeal for community growth and the
willingness to work of people like Charles Myers. William Sykes, and many others.
The same can be said for New Ulm, Brahams Alexandria, Pipestone, and similar
communities. Where key figures in the community are sold on the development Corp-
oration and will give unstintingly of their time and effort, money can be raised
and progress made. Where there is lethargy, and disinterest, funds are difficult toD
find and nothing is accomplished. Leadership at the top is more important than
either widespread participation by citizens or extensive capital resources, for
these seldom exist without that leadership.
Leadership may not be enough. A tougher problem than competent leadership or
adequate financial resources may be the lack of suitability of communities for
business expansion. Many cities with dedicated leadership and sufficient capital
resources are not making much progress in luring new enterprise. Factors which the
development corporation cannot do much about may stand in the way. Providing a
building at modest rental is no solution to these. The location of a community,
its size, its facilities for schooling and recreation, its future as a place to
live, its capacity to provide an appropriate labor force--failurew here may may so
handicap a community that no amount of enthusiasm or leadership in a development
corporation can overcome them. This problem will not be lessoned as more and
tore corporations appear to compete for the limited number of businesses looking
for new locations. The future of the development corporation in many towns
which have little to offer as communities is not bright. No amount of preaching
that these should undertake a "bootstrap operation" to help themselves will
eliminate their basic inadequacies.
Many development corporations in Minnesota have been one-shot operations. They
have m-raged to provide a building for a single firm and have stopped at this point«
Few of them can cite a series of successes like those in Albert Lea, New Ulm or
Winona. Even in communities where leaders grant that funds can be reaised for
'urther business expansion, assistance to a single firm has been the extent of
Success.
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This difficulty may reflect the fFP t that more basic problems are involved than
leadership and financial resources. These problems cannot be attacked only
through selling communities or lending money to business firms. They may stem
from the deep economic and sociological problem indicated in the withering of a
nonurban area as agriculture becomes more mechanized, farming is depressed and the
rural way of life loses its security and appeal. The development corporation alone
cannot solve this problem.
A final word should be added on local business development corporations in
Minnesota. This report has emphasized the ways by which these organizations raise
capital and use this capital for the purchase of industrial sites of the const-
ruction of buildings. The impression may have been left that development
corp- orations are successful only to the extent that they do these things. It should
be stressed here that many of them have been highly useful in areas where no
expenditures of funds are involved. In many communities the development corp-
oration has been the focal point of voluntary assistance of many kinds--legal advicee
sales promotion,,patenting of products, research, and so forth. Mork in areas
like these may contribute as much to business growth in a community as investment
of capital. The importance of such work should be recognized even though it is
discussed little in this reports
eeewwr~~*~*w*~~***~*
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!NVUSTR ,AL DEVELOPP~El\1T CCI-V" SS iC"
` Brooklyn Center, Minnesota
Industrial Climate Study . . .1/30/63
May 29 1963 Analysis of Comments In Reference to
the Sign Ordinance
To: Industr is I Development Commission
From: Industrial Climate Study Committee
Listed below are the comments taken from the industrial Climate Study
quest ionaires. These comments were made by recall and service
establishments.
"Many ordinances need to be updated and reviewed, the sign
ordinances are an example."
"Sign ordinance is similar to that on Bloomington Store, where
difficulty was encountered."
"Think sign ordinance too restrictive and unfair."
"Sign ordinance 1 s way out of proportion. ShopnerIs City is al towed
to nail signs to trees that look like and i cantt post a
service sign on my boulevard that is as' `good'~a looking sign as you
can find. My tire rack is as good looking a building as the
fruit stand nailed together with fruit boxes on Osseo
Toad-near 69th. Yet I have to locate it where the advertising is
of no value. Get rid of some of these screwy ordinances and give
the businessmen a chance to advertise (under certain rules and
regulations of course) and lets try to be as fair to the small,
as you are to the big."
"Inadequate sions to locate Brookdale. Better signs identifying
"Brookdale" are needed-maybe vil lage sign restrictions? prevent
prober sign identification."
"No advertising signs allowed to let the public know what you are
selling so any new business that opened up would have to advertise
door to door. Try to help what businesses we have here now and
in turn it might attract new business and indu,stry."
"Feel sign ordinance should be much clearer."
'Sign ordinance too restrictive. High cost and availability of
commercial land a problem."
"The village should requalify certain personnel in charge of certain
departments." (this comment was in reference to the way the sign
ordinance is enforced)
"I object to the method of aopl scat i on of various codes or
ordinances."
"On Hwy 100 "Brookdale" is not properly identif led. "Sears" I s
seen and people do not realize that this is Brookdale. (Sign
Ordinance?)"
w2-- Sioo Ordinance Ccrnrr.c,ntz
f "Sign ordinances are str is ter tha n Minneanol Is, which is rated one
of the toughest in the U. S. Ordinances are too restrictive to
entice new business. C leaniness and size of signs should be
regulated, but not to the extent that they stifle business."
"Why can't service stations out up signs advertising on their
property and do their work as they see fit instead of how a few
people running the village see Ift I feel the present
ordinances are unfair."
S Uivl<vWR Y
A review of the comments I I sted, and discuss ion by members of the
Commission in regard to their experiences with the Sign Ordinance,
and conversations with various businessmen In the village, - would
indicate the following;
I . That a rev! sed s ign ordinance is needed.
2. The ordinance should be clearly defined.
3. The sign ordinance should meet with the approval of the
governing body.
4, The s ign ordinance should be equal ly enforced.
It apoears that the fitting stations are one of fhe most dissatis-
fled grouos in the village, Al so, that all businesses are not
treated equal ly when anolying for variances or when they put up signs
without a variance and then are asked to remove them.
Bloomington, Crystal, and Golden Valley were contacted and copies
of their sign ordinances were received. We did not attempt to compare
their ordinances to the extent to say, "this one is fair," or "this
one meets our requirements." Ve did find varied thinking as to what
constitutes a sign ordinance, and feel in most cases, eir ordinances
were clearly def ined and there would be little left to ones own
interpretation.
At the present time Golden Valley is in the process of rewriting
their sign ordinance, and we received a copy of their peMed ordinance
that wi l l go to their Council June 18th. i Number I- RULES & DEFiNIT*
IONS, which began with their definition of a SIGN and definitions of
eleven different types of signs.) Bloomington indicated they are
attempting to restrict one sign to each business and find that those
businesses located along the freeway are exerting pressure for more
and bigger signs. This certainly calls to our attention, the need
for a revised sign ordinance before the freeway is completed In our
own village. The general consensus seems to be that the sign
ordinance in any municipality Is a problem. If is just not possible
to write an ordinance that makes everyone haooy, yet meets the
standards of anoearance in a municipafTTy.
It would annear, after a jaunt down a main throughfare in our
vi 1 lage, from vi I lage limits to vi 1 lage limits on Osseo Road, that
the majority of s. the signs now erected do not meet the present
requirements. Therefore; in essence, you can erect a sign of any
is sort that you choose.
For Instance, what Is a construction sign, and is a permit needed?
it has been called to our attention, that certain signs were erected
for a 1 imi ted time, and these have not been removed after the
designated length of time.
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n anc 0 rnr7E n t I
This report is submitted with the real izafion that the preseni-
sign ordinance is now in the process of being rewritten.
We hope that this report will give you some indication of ho~~, sorrn 4
the present businesses feet about the present ordinances and wi i l
be beneficial in the preparation of the sign ordinance.
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