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03-14-2023 EDC Agenda Packet
A.5:30 P.M. - CALL TO ORDER B.APPROVAL OF AGENDA Commissioners may add or delete items at this time. C.APPROVAL OF MINUTES C.1 Approve Economic Development Commission Minutes of February 14, 2023. D.VISITOR PRESENTATIONS E.DISCUSSION / GENERAL BUSINESS ITEMS E.1 Avienda and Chanhassen Bluffs Recreational Facility - Development Updates F.DIRECTOR'S REPORT F.1 Business Retention & Expansion (BR&E) Program Follow-up G.ADJOURNMENT AGENDA CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION TUESDAY, MARCH 14, 2023 CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD 1 Economic Development Commission Item March 14, 2023 Subject Approve Economic Development Commission Minutes of February 14, 2023. Section APPROVAL OF MINUTES Item No: C.1 Prepared By Amy Weidman, Admin Support Specialist File No: SUMMARY BACKGROUND DISCUSSION RECOMMENDATION Staff recommends that the Economic Development Commission approve the February 14, 2023 Commission minutes. ATTACHMENTS Economic Development Commission Meeting Minutes dated February 14, 2023 2 CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING February 14, 2023 Chairman Anderson called the meeting to order at 5:33 p.m. MEMBERS PRESENT: Chair Eric Anderson, Commissioners Duke Zurek, Chris Freeman, Stacy Goff, and Luke Bame. MEMBERS ABSENT: None. STAFF PRESENT: Samantha DiMaggio, Economic Development Manager, and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Chuck Swanson, Carver County CDA. City Clerk, Kim Meuwissen, administered the Oath of Office to newly appointed Commissioner Luke Bame. Member Freeman moved; Member Zurek seconded to approve the agenda. All voted in favor and the motion carried unanimously with a vote of 5 to 0. APPROVAL OF MINUTES: Approve Economic Development Commission Minutes Dated January 10, 2023. Member Goff moved, Member Zurek seconded to approve the Minutes of the Economic Development Commission meeting dated January 10, 2023, as presented. All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS: 1. DEED Presentation: Chanhassen Workforce Overview Mr. Chuck Swanson, Director of Community & Economic Development, shared information about the CDA and his role there. Chuck joined the CDA 9 months ago and he is the point person in Carver County for economic development, business development, land trust, tourism, county sub surface treatment systems, and rehab loan programs. DISCUSSION/GENERAL BUSINESS ITEMS: None. 3 Economic Development Commission – February 14, 2023 2 DIRECTOR’S REPORT: Community Development Director DiMaggio noted recent business visits, the implementation of SourceLink, and gave an update on the BR&E program. ADJOURNMENT: Member Zurek moved, Member Freeman seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Economic Development Commission meeting was adjourned the meeting at 6:46 p.m. Submitted by Samantha DiMaggio Economic Development Manager Prepared by Amy Weidman Administrative Support Specialist 4 Economic Development Commission Item March 14, 2023 Subject Avienda and Chanhassen Bluffs Recreational Facility - Development Updates Section DISCUSSION / GENERAL BUSINESS ITEMS Item No: E.1 Prepared By Sam DiMaggio, Economic Development Manager File No: SUMMARY City Manager, Laurie Hokkanen, will join and share information on the Avienda Development and the proposed Chanhassen Bluffs Recreational Facility. BACKGROUND The Chanhassen City Council and staff have put forward a $40 million investment plan to complete a new recreational facility in the Avienda development with a wide range of amenities and improvements. If approved by the Minnesota Legislature and Chanhassen voters, a local option sales tax (LOST) is the preferred funding mechanism for the new recreational facility. DISCUSSION RECOMMENDATION As this is a presentation, no formal action is required, but the EDC is encouraged to ask questions about Avienda or the proposed Chanhassen Recreational Facility. ATTACHMENTS Chanhassen LOST Report from UMN Extension Chanhassen Regional Impact LOST Request to State of MN 5 EXTENSION CENTER FOR COMMUNITY VITALITY Local Option Sales Tax Analysis for Chanhassen, MN ESTIMATED CONTRIBUTIONS OF RESIDENTS AND NON-RESIDENTS TO A LOCAL OPTION SALES TAX Authored by Ryan Pesch REPORT SPONSOR: CITY OF CHANHASSEN, MINNESOTA 6 7 Local Option Sales Tax Analysis for Chanhassen, MN 1 Report Reviewers: Kelly Grinnell, Finance Director. Sponsor: City of Chanhassen Local Option Sales Tax Analysis for Chanhassen ESTIMATED CONTRIBUTIONS OF RESIDENTS AND NON-RESIDENTS TO A LOCAL OPTION SALES TAX November, 2022 Authored by Ryan Pesch, Extension Educator, University of Minnesota Extension Center for Community Vitality © 2022 Regents of the University of Minnesota. All rights reserved. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Direct requests to 612-625-8233. Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material. 8 Local Option Sales Tax Analysis for Chanhassen, MN 2 Table of Contents SUMMARY OF FINDINGS ........................................................................................... 3 BACKGROUND AND METHODOLOGY ........................................................................ 7 .................................................................................................................................. TRADE AREA ANALYSIS BY MERCHANDISE CATEGORY ............................................... 8 Vehicles and Parts ................................................................................................. 8 Furniture Stores .................................................................................................... 9 Electronics and Appliances .................................................................................. 10 Building Materials ............................................................................................... 11 Food and Groceries ............................................................................................. 12 Health and Personal Items ................................................................................... 13 Gas/Convenience Stores ...................................................................................... 14 Apparel/Clothing ................................................................................................. 15 Leisure Goods ..................................................................................................... 16 General Merchandise Stores ................................................................................ 17 Miscellaneous Retail ........................................................................................... 18 Amusement and Recreation ................................................................................ 20 Accommodations ................................................................................................ 20 Eating/Drinking Establishments ........................................................................... 21 Repair and Maintenance ..................................................................................... 22 Personal Services/Laundry .................................................................................. 23 Retail (non-store) and Other Services .................................................................. 24 Construction, Manufacturing, Utilities, Wholesale Operations, Transportation, and Sales Suppressed for Business Confidentiality ...................................................... 25 APPENDIX A: RESEARCH ON THE EFFECTS OF A LOCAL OPTION SALES TAX ............... 26 APPENDIX B: DEFINITIONS OF TERMS ...................................................................... 28 9 Local Option Sales Tax Analysis for Chanhassen, MN 3 SUMMARY OF FINDINGS University of Minnesota Extension conducted a study to estimate the proportion of sales proceeds attributed to both Chanhassen residents and non-residents. Using 2019 sales and use tax data available from the Minnesota Department of Revenue (MN Revenue), Extension estimated that non-residents account for 45.1 percent of taxable sales subject to a local option sales tax (LOST). Extension chose to use 2019 data instead of the more recent 2020 data due to the significant disruption of sales caused by the pandemic. Driven by an increase in taxable sales in the grocery and building materials categories, the net effect of the pandemic increased the proportion of non-resident spending. Assuming these patterns are transitory, Extension used 2019 data so as not to over-estimate based on a short- lived increase in spending in the community. In 2019, total taxable sales in Chanhassen were $372 million. MN Revenue analysts estimate that approximately 91% would be subject to a LOST. With 45.1 percent of sales derived from non-resident spending, Extension estimated that Chanhassen residents spent $186 million of the total $340 million in taxable sales subject to a LOST. If the tax were in place in 2019, a 0.5 percent local option sales tax would have garnered $1.7 million in tax proceeds according to MN Department of Revenue analysts. Chanhassen residents would have contributed $934 thousand in taxes, and non-residents would have contributed $766 thousand. Based on these estimates, each Chanhassen resident would have paid, on average, an additional $35.55 in sales tax in 2019. This report is based on a trade area analysis comparing actual taxable sales to potential sales. This is calculated by multiplying the Chanhassen population in 2019 (MN Demographic Center) by the Minnesota average per capita sales for each category, and then adjusting for the county’s personal income factor. This initial analysis provided an estimate of retail and service purchases made by Chanhassen residents. For each merchandise group, the estimates for two types of purchasers—city residents and others—were calculated and adjusted considering the area economy. These adjustments were based on informed estimates and were aimed, in part, at reducing potential overestimates of the sales tax share attributable to non-residents. Assumptions and calculations are included for major retail and service categories so local decision makers can adjust totals if they have more nuanced insight. Several factors and features of Chanhassen’s economy helped frame the analysis for the different merchandise categories: 10 Local Option Sales Tax Analysis for Chanhassen, MN 4 • As a metro community with many nearby competing shopping centers, cross-hauling is a significant factor. Chanhassen residents can easily shop outside of the community and residents of nearby communities can also easily access Chanhassen businesses. For this analysis, cross-hauling has the net effect of increasing non-resident spending. • Chanhassen has more workers entering the city for employment than residents who leave for work (Figure 1). In this dynamic, commuters often shop for goods and services near where they work and those commuting into the city purchase in the city. Figure 2 shows the estimated percentage of sales—across all merchandise categories— attributed to both residents and non-residents in 2019. These estimates are based on the adjusted analysis to more accurately reflect the city’s economic and consumption circumstances. Based on these findings, Extension estimates city residents represent 54.9 percent of all taxable retail and service sales subject to the tax ($187 million), and the remaining 45.1 percent ($153 million) are attributed to non-residents. The total taxable sales in the city experienced modest fluctuations between 2011 and 2017, after which they remained consistent (Figure 3). Total taxable sales were $258 million in 2011 and $372 million in 2019. This provides some sense of the stability of a LOST going forward. The city did experience a 2.6% increase between 2019 and 2020 due to the economic Figure 2: Estimated 2020 Taxable Sales Subject to LOST Taxable Sales Percent of Sales City residents $186,817,191 54.9% Non-residents $153,182,809 45.1% Figure 1: Chanhassen worker in-flow and out-flow Inflow and outflow of wage earners. Source: 2019 U.S. Census Bureau On-The-Map Figure 3: Total taxable sales in Chanhassen from 2011-20 (millions) Source: Minnesota Department of Revenue $- $50 $100 $150 $200 $250 $300 $350 $400 $450 2011 2013 2015 2017 2019 11 Local Option Sales Tax Analysis for Chanhassen, MN 5 shifts in spending, more than likely due to the pandemic. Extension forecasted taxable sales subject to the local tax for 2020, 2021, and 2022 using a simple exponential smoothing forecast model that employs a moving weighted average and a 95% confidence interval to provide an upper and lower bound to the estimate (Figures 5 and 6). This model estimates total tax proceeds in 2023 to be between an upper limit of $2.25 million and a lower limit of $1.79 million. Considering the historic disruption of the pandemic and its uneven effect on business categories, this forecast is an unlikely scenario based only on past trends. National evidence shows that home-focused businesses like food, building materials, furniture, and general merchandise did well through the pandemic, whereas dining, accommodations, and amusement saw record sales decreases. The sharp rebound in sales in 2021 further complicates any forecast. Although Chanhassen saw an increase in building materials, leisure goods, and food and liquor stores, the city departed from this national pattern with a significant decrease in furniture sales, while, surprisingly, food service remained nearly the same from year to year (Figure 4). Figure 4: Change in Taxable Sales by Percent, 2019-2020 -74% -53%-51% -37% -25%-21%-12%-10%-8%-1%-1% 24%26% 61% -100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 12 Local Option Sales Tax Analysis for Chanhassen, MN 6 Figure 5: Forecast for Tax Proceeds based on Past Trends 2011 to 2019 Figure 6: Forecast with Upper and Lower Bound 2020-23 Forecast Lower Bound Upper Bound 2020 $1,828,593 $1,621,694 $2,035,492 2021 $1,892,398 $1,679,082 $2,105,715 2022 $1,956,204 $1,736,608 $2,175,800 2023 $2,020,009 $1,794,261 $2,245,758 In contrast, a forecast of tax proceeds for the three years following 2020 provides a slightly more optimistic estimate simply due to the modest uptick in taxable sales in 2020 (Figure 7). For this reason, although 2020 was released when conducting this analysis, Extension based final results on 2019 data to keep estimates more conservative. Figure 7: Forecast for Tax Proceeds based on Past Trends 2011 to 2020 $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Values Forecast Lower Confidence Bound Upper Confidence Bound $- $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Values Forecast Lower Confidence Bound Upper Confidence Bound 13 Local Option Sales Tax Analysis for Chanhassen, MN 7 Use taxes also affect the tax proceeds from a local option sales tax. Use taxes derive from city businesses purchasing products from out-of-state sources and in other Minnesota locations. Use taxes are often less consistent and more difficult to estimate accurately than sales taxes. In 2019, the city received $1,988,921 in use (not sales) tax proceeds. It would have garnered $145,000 for a LOST at the 0.5 percent rate. Policymakers must also consider the impacts that a LOST may have on consumer purchasing behavior, particularly whether it will result in a loss of consumer purchases to other jurisdictions. Extension examined records of 11 cities that enacted a local option sales tax between 1999 and 2006 (information available on the Minnesota Department of Revenue website). Records do not indicate a major purchasing change due to the additional sales tax, and most of the jurisdictions have shown continued sales growth (see Appendix A). These communities, however, may not be comparable to Chanhassen. All communities included in this analysis are located outside the Twin Cities metro area and may retain more shoppers than communities in the metro area where one can easily switch spending from one jurisdiction to another. 14 Local Option Sales Tax Analysis for Chanhassen, MN 8 BACKGROUND AND METHODOLOGY Community economics educators at University of Minnesota Extension provide applied research and education to help community and business partners make better informed decisions. In recent years, Minnesota has adopted laws enabling local governments to enact a local option sales tax. Extension has assisted these administrations in estimating their potential tax proceeds and the portion of taxes paid by local residents. This report estimates the proportion of tax proceeds generated by Chanhassen residents compared to non-residents. The most recently available state sales tax data (2019) from the Minnesota Department of Revenue (MN Revenue) was used. Trade Area Analysis and Calculations Extension conducted a trade area analysis of retail and service sales in select merchandise categories, estimating the amount of taxable sales subject to sales taxes made by both local residents and non-residents. Use tax is a much smaller portion of the total collection compared to sales tax proceeds. It is also estimated using a different formula. Extension calculated potential sales for the city in each merchandise category and compared this calculation to actual taxable sales from the Minnesota Department of Revenue sales tax statistics for the same category. Actual sales greater than potential sales indicate the county attracts sales from outside its boundaries or has sales greater than one would expect from its residents. Extension used the difference between potential and actual sales to set reasonable estimates of spending by residents and non-residents across all categories. These estimates also helped inform adjustments for each category. Potential sales calculations are based on average statewide spending by merchandise category and the population of the county, then adjusted by the level of income in Chanhassen. Specifically, potential sales result from county population, state per capita taxable sales, and the index of income (see sidebar and Appendix B). The following section details the initial and adjusted trade area calculations for all merchandise categories. The sections labeled “Analysis with Adjustments” lists the final estimate of sales generated by non-residents. A rationale for adjustments and conclusions is also included. Potential sales estimate the dollar amounts for purchases made by local residents if local residents spend as much as the average Minnesota resident. Potential sales are calculated by the following formula: (T ÷ PMn) x PO x (YWC ÷YMn) = potential sales T = Total Minnesota taxable sales for a merchandise category PMn = 2019 population of Minnesota (5,639,632) PO = 2019 population of Chanhassen (26,278) YWC = Per capita income of Carver County residents ($73,023) YMn = Per capita income of Minnesota residents ($58,834) 15 Local Option Sales Tax Analysis for Chanhassen, MN 9 TRADE AREA ANALYSIS BY MERCHANDISE CATEGORY The following pages provide detailed analysis by merchandise category. Vehicles and Parts 0.9 percent of total taxable retail and service sales The 6 businesses in this retail category include repair parts, snowmobiles, boats, trailers, and recreational vehicles. Sales of cars and other on-road vehicles are not included in this category since they are subject to a different tax. ($Millions) Actual taxable sales NA -Potential sales $18.24 = $ variance NA = as % of potential Unadjusted Trade Area Analysis Potential taxable sales to residents Surplus Total Surplus percentage Analysis with Adjustments Capture rate of Chanhassen residents Residents' $ share Non-Residents' $ share Total Non-resident share per group Analysis for Vehicles and Parts In 2019, Chanhassen had its sales in general merchandise suppressed due to too few businesses reporting in this category. Minnesota Revenue will suppress data when less than four establishments have reported. The sales from the vehicles and parts businesses that were operating in 2019 were reported in the miscellaneous retail category. 16 Local Option Sales Tax Analysis for Chanhassen, MN 10 Furniture Stores 0.6 percent of total taxable retail and service sales These 7 businesses sell furniture, beds, carpeting, window coverings, kitchenware, and wood-burning stoves. ($Millions) Actual taxable sales $1.93 Potential sales $8.46 = $ variance ($6.53) = as % of potential -77.2% Unadjusted Trade Area Analysis Potential sales to residents $8.46 Surplus ($6.53) Total $1.93 Non-resident share per group -338.8% Analysis with Adjustments Capture rate of Chanhassen residents 21% Residents' $ share $1.73 Non-Residents' $ share $0.19 Total $1.93 Non-resident share per group 10.0% Analysis for Furniture Stores Furniture stores are a minor retail category in Chanhassen with 7 businesses operating in the city. The community had a very sizeable deficit in 2019, 77% less than expected. When a community has a deficit, Extension still sets the non-resident share above zero because it is unrealistic to assume that no sales come from outside the community. In this case, Extension set the non-resident share at 10% due to the cross-hauling of customers in the metro area where non-residents are in close proximity. 17 Local Option Sales Tax Analysis for Chanhassen, MN 11 Electronics and Appliances 0.4 percent of total taxable retail and service sales* These 7 businesses primarily include household-type appliances, sewing machines, cameras, computers, and other electronic goods. ($Millions) Actual taxable sales $1.17 -Potential sales $9.29 = $ variance ($8.13) = as % of potential -87.5% Unadjusted Trade Area Analysis Potential sales to residents $9.29 Surplus ($8.13) Total $1.17 Non-resident share per group -696.8% Analysis with Adjustments Capture rate of Chanhassen residents 12% Residents' $ share $1.11 Non-residents' $ share $0.06 Total $1.17 Non-resident share per group 5.0% Analysis for Electronics and Appliances Taxable sales are significantly lower than expected in the electronics and appliances category. The category accounts for only 0.4% of all retail and service taxable sales and lost over $8 million more than expected. Clearly residents are shopping outside of Chanhassen in this category. Extension set the non-resident share at 5% to allow for some minor amount of shopping by non-residents at 7 businesses operating in the community. 18 Local Option Sales Tax Analysis for Chanhassen, MN 12 Building Materials 20.0 percent of total taxable retail and service sales* These 5 businesses sell lumber, hardware, paint, wallpaper, tile, hardwood floors, roofing, fencing, ceiling fans, lawn equipment, and garden items. ($Millions) Actual taxable sales $60.08 Potential sales $31.45 = $ variance $28.63 = as % of potential 91.1% Unadjusted Trade Area Analysis Potential sales to residents $31.45 Surplus $28.63 Total $60.08 Non-resident share per group 47.7% Analysis with Adjustments Capture rate of Chanhassen residents 76% $49Residents' $ share $24.03 Non-residents' $ share $36.05 Total $60.08 Non-resident share per group 60.0% Analysis for Building Materials Building materials is surprisingly a large category in Chanhassen, accounting for only 20% of all retail and service taxable sales. The focus group did not think that Chanhassen had a large presence in building materials since there isn’t a big box building material store in the community such as Menards, Lowes, or Home Depot. Instead, the community does host Lyman Lumber, Lumber Liquidators, and Merlin’s Ace Hardware. These and two other businesses must be pulling in significant non-resident traffic at nearly 50% more than expected for the size of the community. Extension set the non-resident share at 60% to account for Chanhassen residents shopping outside the community at easily-accessible building material stores in Eden Prairie. 19 Local Option Sales Tax Analysis for Chanhassen, MN 13 Food and Groceries 17.4 percent of total taxable retail and service sales The 16 businesses in this merchandise group include grocery stores, delis, bakeries, and butcher shops that sell food to be prepared at home. Liquor stores are also included in this group. ($Millions) Actual taxable sales $52.02 - Potential sales $23.33 = $ variance $28.69 = as % of potential 123.0% Unadjusted Trade Area Analysis Potential sales to residents $23.33 Surplus $28.69 Total $52.02 Non-resident share per group 55.2% Analysis with Adjustments Capture rate of Chanhassen residents 76% Residents' $ share $17.69 Non-residents' $ share $34.33 Total $52.02 Non-resident share per group 66.0% Analysis for Food and Groceries Extension’s trade area analysis estimated a significant in the food and liquor category in this category, which is clearly a niche for the community that pulls in non-residents. Extension estimated that Chanhassen residents spend $23 million in taxable sales in this category, yet Chanhassen store reported $52 million in taxable sales. With this strong a draw, Extension set the non-resident share at 66%. With such a concentration in grocery with stores such as Lunds, Byerlys, Cub, and Lakewinds Co-op, Chanhassen clearly has a solid mix which would reasonably pull in non-resident traffic. 20 Local Option Sales Tax Analysis for Chanhassen, MN 14 Health and Personal Items 1.5 percent of total taxable retail and service sales Stores selling prescription drugs, food supplements, vision supplies, cosmetics, and hearing aids are among the 16 businesses included in this merchandise group. ($Millions) Actual taxable sales $4.62 Potential sales $4.00 = $ variance $0.62 = as % of potential 15.5% Unadjusted Trade Area Analysis Potential sales to residents $4.00 Surplus $0.62 Total $4.62 Non-resident share per group 13.4% Analysis with Adjustments Capture rate of Chanhassen residents 75% Residents' $ share $3.00 Non-residents' $ share $1.62 Total $4.62 Non-resident share per group 35.0% Analysis for Health and Personal Items As a percent of total retail and service sales, the health and person stores category may appear small, but actually this category is disproportionately strong with 16 businesses in operation. The category accounts for 1.5% of taxable retail and service sales in the state. Taxable sales are greater than would be expected for the size of the community with a $0.62 million surplus. Extension set the non-resident share at a 35%. This translates into a 75% capture rate of local resident spending. 21 Local Option Sales Tax Analysis for Chanhassen, MN 15 Gas/Convenience Stores 1.0 percent of total taxable retail and service sales This merchandise group covers 9 businesses selling convenience items at a store that also sells fuel. ($Millions) Actual taxable sales $5.61 -Potential sales $8.11 = $ variance ($2.50) = as % of potential -30.8% Unadjusted Trade Area Analysis Potential sales to residents $8.11 Surplus ($2.50) Total $5.61 Non-resident share per group -44.5% Analysis with Adjustments Capture rate of Chanhassen residents 62% Residents' $ share $5.05 Non-residents' $ share $0.56 Total $5.61 Non-resident share per group 10.0% Analysis for Gas/Convenience Stores Chanhassen has a sizeable deficit in the gas and convenience store category, netting $2.5 million less than potential sales calculations. Extension set the non-resident share at a conservative 10% to account for non-resident spending when traveling through on major thoroughfares. 22 Local Option Sales Tax Analysis for Chanhassen, MN 16 Apparel/Clothing 0.1 percent of total taxable retail and service sales This merchandise group includes 12 businesses selling new clothing and accessories, jewelry, shoes, bridal items, clocks, and luggage. ($Millions) Actual taxable sales $0.19 Potential sales $4.65 = $ variance ($4.46) = as % of potential -95.9% Unadjusted Trade Area Analysis Potential sales to residents $4.65 Surplus ($4.46) Total $0.19 Non-resident share per group -2358.3% Analysis with Adjustments Capture rate of Chanhassen residents 4% Residents' $ share $0.18 Non-residents' $ share $0.01 Total $0.19 Non-resident share per group 5.0% Analysis for Apparel/Clothing The clothing and apparel category is significantly weaker than expected for the size of Chanhassen. Even though 12 businesses reported sales, Extension’s trade area analysis estimates that the city brought in 95% less in taxable sales than expected and set the non- resident share a modest 5% of taxable sales. 23 Local Option Sales Tax Analysis for Chanhassen, MN 17 Leisure Goods 0.0 percent of total taxable retail and service sales The 9 businesses in this merchandise group sell sporting goods, books, music, hobby items, fabrics, and toys. ($Millions) Actual taxable sales $0.10 Potential sales $5.83 = $ variance ($5.73) = as % of potential -98.3% Unadjusted Trade Area Analysis Potential sales to residents $5.83 Surplus ($5.73) Total $0.10 Non-resident share per group -5652.1% Analysis with Adjustments Capture rate of Chanhassen residents 2% Residents' $ share $0.10 Non-Residents' $ share $0.01 Total $0.10 Non-resident share per group 5.0% Analysis for Leisure Goods Extension’s trade area analysis estimates that the city has a $5.9 million deficit in this minor category which is focused on specialized retail. Extension set the non-resident share at 5%, not unlike other categories with significant deficits. 24 Local Option Sales Tax Analysis for Chanhassen, MN 18 General Merchandise Stores N/A percent of total taxable retail and service sales* The N/A businesses in this category sell general merchandise and are unique because they have the equipment and staff needed to sell a large variety of goods from a single location. This includes department stores, superstores, dollar stores, and variety stores. ($Millions) Actual taxable sales potential sales = $ variance = as % of potential Unadjusted Trade Area Analysis Potential sales to residents Surplus Total Non-resident share per group Analysis with Adjustments Capture rate of Chanhassen residents Residents' $ share Non-Residents' $ share Total Non-resident share per group Analysis for General Merchandise Stores In 2019, Chanhassen had its sales in general merchandise suppressed due to too few businesses reporting in this category. Minnesota Revenue will suppress data when less than four establishments have reported. The sales from the general merchandise stores that were operating in 2019 were reported in the miscellaneous retail category. 25 Local Option Sales Tax Analysis for Chanhassen, MN 19 Miscellaneous Retail 11.3 percent of total taxable retail and service sales 48 businesses are part of this group, including florists, used merchandise stores, pet supply stores, and other retailers. ($Millions) Actual taxable sales $33.73 Potential sales $58.81 = $ variance ($25.08) = as % of potential -42.6% Unadjusted Trade Area Analysis Potential sales to residents $58.81 Surplus ($25.08) Total $33.73 Non-resident share per group -74.4% Analysis with Adjustments Capture rate of Chanhassen residents 50% Residents' $ share $29.68 Non-residents' $ share $4.05 Total $33.73 Non-resident share per group 12.0% Analysis for Miscellaneous Retail Extension’s trade area analysis estimates that Chanhassen brought in $25 million less than expected in the miscellaneous retail category, which was a combined general merchandise/vehicles/misc. retail category since vehicles and parts and general merchandise were suppressed due to privacy issues. Extension set the non-resident share to 12% . 26 Local Option Sales Tax Analysis for Chanhassen, MN 20 Amusement and Recreation 5.3 percent of total taxable retail and service sales* The 13 businesses in this group include casinos, bowling lanes, water parks, amusement parks, arcades, bingo halls, golf courses, ski slopes, marinas, dance or fitness centers, recreational clubs, ice rinks, swimming pools, roller rinks, etc. ($Millions) Actual taxable sales $15.85 Potential sales $10.03 = $ variance $5.82 = as % of potential 58.1% Unadjusted Trade Area Analysis Potential sales to residents $10.03 Surplus $5.82 Total $15.85 Non-resident share per group 36.7% Analysis with Adjustments Capture rate of Chanhassen residents 73% Residents' $ share $7.29 Non-residents' $ share $8.56 Total $15.85 Non-resident share per group 54.0% Analysis for Amusement and Recreation Extension’s trade area analysis estimates that the city has a significant surplus of potential sales, most likely driven by a famous and popular Chanhassen Dinner Theater and local recreation establishments such as Anytime Fitness. In this case and considering the large surplus of $10 million, Extension set the non-resident share at 54 percent. 27 Local Option Sales Tax Analysis for Chanhassen, MN 21 Accommodations 1.8 percent of total taxable retail and service sales These 8 businesses provide lodging or short-term accommodations for travelers, vacationers, and others. Included are hotels, motels, lodges, bed & breakfasts, campgrounds, fraternities, boarding houses, and dormitories. ($Millions) Actual taxable sales $5.27 Potential sales $13.29 = $ variance ($8.02) = as % of potential -60.4% Unadjusted Trade Area Analysis Potential sales to residents $13.29 Surplus ($8.02) Total $5.27 Non-resident share per group -152.2% Analysis with Adjustments Capture rate of Chanhassen residents 4% Residents' $ share $0.53 Non-residents' $ share $4.74 Total $5.27 Non-resident share per group 90.0% Analysis for Accommodations Logically, a significant percentage of lodging sales are from non-residents visiting the area or staying overnight for business or vacation. As with previous LOST analyses, Extension set the non-resident share at 90 percent of sales to allow for resident spending related to events, facility charges, and ‘staycations.’ 28 Local Option Sales Tax Analysis for Chanhassen, MN 22 Eating/Drinking Establishments 19.0 percent of total taxable retail and service sales These 59 businesses sell food at full-service or limited-service establishments. The group includes cafeterias, bagel shops, ice cream parlors, snack bars, food service contractors, caterers, lunch wagons, and street vendors. It also includes bars, taverns, and nightclubs. ($Millions) Actual taxable sales $56.90 Potential sales $54.59 = $ variance $2.31 = as % of potential 4.2% Unadjusted Trade Area Analysis Potential sales to residents $54.59 Surplus $2.31 Total $56.90 Non-resident share per group 4.1% Analysis with Adjustments Capture rate of Chanhassen residents 76% Residents' $ share $41.54 Non-residents' $ share $15.36 Total $56.90 Non-resident share per group 27.0% Analysis for Eating/Drinking Establishments The eating and drinking category—which includes all bars, restaurants, and other food service—is a significant category with $57 million in taxable sales and has a modest surplus at nearly $2.3 million. The local focus group provided insight that there is a wide mix of dining establishments and maybe some dining has been driven by the Chanhassen Dinner Theater. In this context, Extension set the non-resident share up to a conservative 27 percent. 29 Local Option Sales Tax Analysis for Chanhassen, MN 23 Repair and Maintenance 4.8 percent of total taxable retail and service sales The 25 businesses in this group restore machinery, equipment, and other products. The group does not include plumbing or electrical repair services but does encompass auto repair, cameras, televisions, computers, copiers, appliances, lawn mowers, specialized equipment, small engines, furniture, shoes, guns, etc. ($Millions) Actual taxable sales $14.31 Potential sales $8.77 = $ variance $5.54 = as % of potential 63.1% Unadjusted Trade Area Analysis Potential sales to residents $8.77 Surplus $5.54 Total $14.31 Non-resident share per group 38.7% Analysis with Adjustments Capture rate of Chanhassen residents 80% Residents' $ share $7.01 Non-residents' $ share $7.30 Total $14.31 Non-resident share per group 51.0% Analysis for Repair and Maintenance At 4.8 percent of total taxable sales, repair and maintenance is stronger in Chanhassen than other Minnesota communities, where oftentimes the repair category accounts for 1-2% of total taxable retail sales. The $14.3 million in taxable sales is 63% greater than expected from potential sales calculations or $5.5 million more than expected. Extension set the non- resident share at 51 percent, which translated in a 80% capture rate of Chanhassen resident spending. Oftentimes repair and maintenance serve a very local customer base. 30 Local Option Sales Tax Analysis for Chanhassen, MN 24 Personal Services/Laundry 1.9 percent of total taxable retail and service sales The 55 businesses in this merchandise group include barber shops and beauty parlors, death care services, laundry and dry-cleaning services, and a wide range of other personal services, such as pet care (except veterinary), photofinishing, temporary parking, and dating services. ($Millions) Actual taxable sales $5.71 Potential Sales $5.33 =$ variance $0.38 = as % of potential 7.1% Unadjusted Trade Area Analysis Potential sales to residents $5.33 Surplus $0.38 Total $5.71 Non-resident share per group 6.7% Analysis with Adjustments Capture rate of Chanhassen residents 82% Residents' $ share $4.40 Non-residents' $ share $1.31 Total $5.71 Non-resident share per group 23.0% Analysis for Personal Services/Laundry This category includes businesses that typically serve a local market, such as barbers, hair salons, and dry-cleaning operations. Not unlike the health and personal store category in Chanhassen, the city is disproportionately strong in this category with 55 businesses and a $0.73 million surplus. Clearly the community has a niche with draws in non-residents. Extension set the non-resident share at 23%, which translates in a 82% capture rate. 31 Local Option Sales Tax Analysis for Chanhassen, MN 25 Retail (Non-Store) and Other Services This section includes taxable sales attributed to North American Industrial Classification System categories 511-813 released by MN Revenue. ($Millions) Actual taxable sales $43.58 % of total taxable retail and service sales In Chanhassen 14.5% Analysis with Adjustments ($Millions) Residents' $ share $20.48 Non-residents' $ share $23.10 Total $43.58 Non-resident share per group 53% Analysis for Retail and Other Services This group includes non-store retailers (such as direct selling operations), healthcare, waste management, rental/lease services, administrative support, and the performing arts. Some of these categories serve primarily a local market, whereas categories like 541 (professional and technical services) often serve a non-local market. This mix of business types is too diverse to run a trade area analysis for, but Extension estimated an aggregate 53 percent of these sales are to non-resident customers. The categories of sales are shown below: Category Taxable Sales % non-local $ non-local 454 RETL -NONSTORE RETAILERS $1,647,585 80% $1,318,068 511 INFO -PUBLISHING INDUSTRY $64,915 50% $32,458 518 INFO -DATA PROCESSING $1,019,099 30% $305,730 524 INSURANCE CARRIERS $1,875 30% $563 531 REAL ESTATE $303,318 30% $90,995 541 PROF,SCIENTIFIC,TECH SERV $6,195,076 50% $3,097,538 561 ADMIN, SUPPORT SERVICES $10,060,966 20% $2,012,193 611 EDUCATIONAL SERVICES $329,509 20% $65,902 621 HEALTH -AMBULATORY CARE $590,572 20% $118,114 624 HEALTH -SOCIAL ASSISTANCE $436 20% $87 711 PERF ART, SPECTATOR SPRTS $20,447,668 70% $14,313,368 Total $43,584,415 53% $23,109,053 32 Local Option Sales Tax Analysis for Chanhassen, MN 26 Construction, Manufacturing, Utilities, Wholesale Operations, Transportation, and Sales Suppressed for Business Confidentiality A diverse mix of businesses fall into these non-retail categories, and a portion of sales are within a suppressed or non-disclosed subcategory. These industries and services generate $119.5 million in taxable sales, or 19.2 percent of total taxable sales in Chanhassen. The transactions that happen within the city would be subject to any new sales taxes, including a local option sales tax. This category includes utilities that primarily serve a local market and are subject to a local option sales tax. The diversity of firm types included in this category makes it difficult to understand the customer mix of these businesses; however, Extension broke out each known subcategory with an assumption of whether customers paying the taxable sales were non- local: Category Taxable Sales % non-local $ non-local CONSTRUCTION $2,687,592 40% $1,075,037 MANUFACTURING $15,478,206 80% $12,382,565 WHOLESALE $32,940,547 40% $13,176,219 UNDESIGNATED/SUPPRESSED $20,276,153 20% $4,055,231 Total $71,382,498 43% $30,689,051 Extension estimated that, overall, 43 percent of sales are to non-residents. This analysis assumes that some subcategories, such as manufacturing sell primarily (80 percent) to non- resident customers, whereas subcategories like construction split sales between resident and non-resident customers. Analysis with Adjustments ($Millions) Residents’ $ share $40.69 Non-residents $ share $30.69 Total $71.38 Non-resident share 43% 33 Local Option Sales Tax Analysis for Chanhassen, MN 27 APPENDIX A: RESEARCH ON THE EFFECTS OF A LOCAL OPTION SALES TAX Policymakers are often concerned that enacting a local sales tax will result in a loss of consumer purchases to neighboring communities that have not adopted the tax. The Minnesota Department of Revenue records the tax collected from a set of Minnesota jurisdictions that have had a local sales or use tax in effect for at least eight years. Most of these cities show continued sales growth. A comparison that includes 11 Minnesota cities adopting a 0.5 percent local option sales tax is offered below (refer to Figures 4, 5, 6, and 7). Policymakers must determine the best allowable method to raise revenue from a variety of options. One option is raising property taxes, which is not directly related to a household’s current income and raises the financial burden of low-income or retired homeowners. Sales taxes raise revenues based on household expenditures, which, in Minnesota, excludes the basic necessities of food and clothing. However, since sales tax raises revenues from non- residents who shop in Chanhassen, resident contributions to tax revenues are significantly lower than a tax generated exclusively by local residents, such as a property tax. Policymakers must carefully consider these and other factors before making a decision about enacting a local sales tax. Figure 4: Taxable retail and service sales by communities that began collecting a local option sales tax from 1999 to 2006 Figure 5: Data table for example communities, taxable retail and service sales (in millions) $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 $800,000,000 $900,000,000 $1,000,000,000 1990 1995 2000 2003 2004 2005 2006 2007 2008 2009 2010 2015 Albert Lea Baxter Bemidji New Ulm Worthington Town Name 2015 Population Year LOST 90 95 00 03 04 05 06 07 08 09 10 15 Albert Lea 18,356 2006 $264 $344 $397 $407 $521 $502 $551 $555 $588 $519 $541 $696 Baxter 8,065 2006 $432 $473 $556 $605 $650 $630 $612 $676 $900 Bemidji 11,917 2005 $257 $362 $457 $428 $410 $437 $495 $596 $570 $563 $581 $837 New Ulm 13,594 1999 $109 $165 $204 $233 $236 $259 $261 $280 $303 $295 $329 $417 Worthington 11,283 2005 $77 $77 $91 $99 $102 $103 $103 $108 $107 $108 $114 $121 34 Local Option Sales Tax Analysis for Chanhassen, MN 28 Figure 6: Taxable retail and service sales by communities that began collecting a local option sales tax between 2011- 2012 Figure 7: Data table for example communities, taxable retail and service sales (in millions) Town Name 2015 Pop Year LOST 90 95 00 05 09 10 11 12 13 14 15 Brainerd 13,178 2011 $302 $479 $623 $458 $362 $324 $311 $330 $332 $338 $341 Cloquet 11,201 2011 $93 $124 $175 $244 $260 $273 $290 $303 $296 $308 $284 Fergus Falls 13,471 2011 $192 $263 $386 $523 $467 $486 $551 $591 $568 $558 $534 Hermantown 7,448 1996 - increase 2012 $43 $164 $137 $430 $393 $423 $489 $576 $607 $637 $659 Hutchinson 13,080 2011 $122 $191 $269 $471 $609 $374 $425 $409 $389 $415 $424 Marshall 12,735 2011 $176 $283 $343 $398 $371 $380 $440 $447 $457 $463 $428 $0 $100,000,000 $200,000,000 $300,000,000 $400,000,000 $500,000,000 $600,000,000 $700,000,000 1990 1995 2000 2005 2009 2010 2011 2012 2013 2014 2015 Brainerd Cloquet Fergus Falls Hermantown Hutchinson Marshall 35 Local Option Sales Tax Analysis for Chanhassen, MN 29 APPENDIX B: DEFINITIONS OF TERMS Gross sales Gross sales include taxable sales and exempt businesses with sales and use tax permits. This is the most inclusive indicator of business activity for reporting jurisdictions, but it can be misleading when used in comparisons. At times, non-taxable commodity items (e.g., gasoline) can have large price variations, creating huge swings in gross sales. Taxable sales Taxable sales are sales subject to sales tax. Taxable sales exclude exempt items, items sold for resale, items sold for exempt purposes, and items sold to exempt organizations. For the purpose of this study, taxable sales were the focus of the analysis. For more information on what is taxed in Minnesota, see the "Minnesota Sales and Use Tax Instruction Booklet" available at https://www.revenue.state.mn.us/minnesota-tax-handbooks Taxable retail and service sales In this study and other retail trade analyses conducted by University of Minnesota Extension, the term “taxable retail and service sales” refers to the North American Industry Classification System (NAICS) numbers of 441 to 454 (retail) and 511 to 812 (most service industries) released by the Minnesota Department of Revenue for a geographic area. Current and constant dollar sales Current dollar (or “nominal dollar”) sales are those reported by the state. No adjustment has been made for price inflation. In general, this measure of sales is not satisfactory for comparisons over long periods of time since it does not account for changes in population, inflation, or the state's economy. Constant dollar (or “real dollar”) sales reflect changes in price inflation by adjusting current dollar sales according to the Consumer Price Index (CPI). Constant dollar sales indicate the real sales level with respect to a base year. This is a more realistic method of evaluating sales over time than current dollar comparisons, but it still does not take into consideration changes in population or the state’s economy. Number of businesses The number of sales and use tax permit holders who filed one or more tax returns for the year. Index of income This index provides a relative measure of income, calculated by dividing local per capita income by state per capita income. The base is 1.00. For example, a 1.20 index of income indicates that per capita income in the area is 20 percent above the state average. Potential sales Potential sales are an estimate of the amount of money spent on retail goods and services by residents of a county or county. It is the product of county population, state per capita sales, and the index of income (based on the county personal per capita income). Actual sales For this study, the Minnesota Department of Revenue’s 2019 sales data for Chanhassen provides the actual sales numbers used. 36 Local Option Sales Tax Analysis for Chanhassen, MN 30 Variance between actual and potential sales The variance between actual and expected sales is the difference in sales from the “norm” (i.e., the amount above or below the standard established by the expected sales formula). When actual sales exceed expected sales, the county has a “surplus” of retail sales. When actual sales fall short of expected sales, the county has a retail sales “leakage.” Discrepancies between expected and actual sales occur for a variety of reasons. For this study, we use potential sales per merchandise group to create a first-cut estimate of residents’ purchase activities. Cautions Gross sales Gross sales are a comprehensive measure of business activity, but it should be noted the numbers in this report are self-reported. Furthermore, gross sales are not audited by the state of Minnesota. It is believed that gross sales figures are generally reliable, but there is the possibility of distortions, especially in smaller cities where misreporting may have occurred. Misclassification Holders of sales and use tax permits select the North American Industry Classification System (NAICS) category that best fits their business. All sales reported by a business is attributed to that selected NAICS category. Regardless of who makes this classification, errors are occasionally made. Also, sometimes a business will start out as one type but evolve over time to a considerably different type. Misclassifications can distort sales among business categories, especially in smaller cities. For example, a furniture store that is classified as a general merchandise store will underreport sales in the furniture store category and over-report sales in the general merchandise category. Suppressed data The sales data for merchandise categories that have less than four reporting firms are not reported. This is a measure taken by most states to protect the confidentiality of sales tax permit holders. Sales for suppressed retail categories are placed into the miscellaneous retail category (NAICS 999) and included in total sales but not total sales of a typical retail trade analysis. For this report, however, all taxable sales—including NAICS 999—are part of calculating the amount of special taxes collected. Consolidated reporting Vendors with more than one location in Minnesota have the option of filing a separate return for each location or filing one consolidated return for all locations. The consolidated return shows sales made, tax due, and location by county, and county for each business. Data for consolidated filers are combined with data for single-location filers to produce the figures in this report. Occasionally, consolidated reports may not be properly deconstructed, and all sales for a company may be reported for one town or county. Whenever misreporting is discovered, the Minnesota Department of Revenue is contacted to clarify the situation. 37 City of Chanhassen Avienda Recreational Facility Request for Local Option Sales Tax DEMONSTRATED REGIONAL INTEREST The City of Chanhassen has established the need for a recreational facility • The 2022 Facility study focused on the desire to have a full-service community center • Lack of available land in Chanhassen necessitates private partnership • Convened Park Referendum Task Force in 2022; 20 people on the Task Force met seven times • Survey data consistently demonstrates interest in the project CHANHASSEN SERVES A WIDE-REACHING POPULATION • Two school districts serve Chanhassen • School districts span 14 communities • 10,900 students currently enrolled in the Minnetonka School District from 10 communities • 63 percent of Chanhassen High School students are residents from another city • 1/3 of Chanhassen Parks and Recreation participants come from surrounding communities • Chanhassen Parks and Recreation cultivates more than 60 partnerships • More than 40,000 trips are made daily • Highway 212 provides a direct path to western Minnesota • Easy access to the Twin Cities Metro and Greater Minnesota AVIENDA CONVENIENTLY LOCATED ON HIGHWAY 212 AVIENDA AT A GLANCE Located in the area of Highway 212 and Powers Boulevard, Avienda offers a desirable, diverse shopping and lifestyle destination with convenient access. The Avienda Recreational Facility will have 2 sheets of ice, turf, an indoor walking track, meeting rooms, and other amenities that serve Chanhassen’s residents and fulfill our mission to be a community for life. Learn more at ChanhassenMN.gov OF SALES TAX WOULD BE GENERATED BY NON-RESIDENTS45% 38 City of Chanhassen Working to create a Regional Recreational Facility in Chanhassen • Paisley Park draws over 600,000 visitors a year • Over 500,000 people visit the Minnesota Landscape Arboretum every year • The city’s 4th of July Celebration brings over 70,000 people to downtown • Parks and Recreation has attracted significant input from neighboring communities on major projects • In 2021, the Chanhassen Parks and Recreation Department provided 2,563 service hours of rental space to community organizations • Each week, 4,000 visitors attend the Chanhassen Dinner Theatre • Last year, over 6,000 statewide youth were served at Camp Fire Minnesota CHANHASSEN ATTRACTS REGIONAL VISITORS & PARTICIPANTS PARTNERED SPORTS ASSOCIATIONS SOCCER Organization Total Participants Chanhassen Residents CC United Soccer 1,765 369 Tonka United Soccer 2,350 650 BASEBALL & SOFTBALL HOCKEY LACROSSE & FOOTBALL Organization Total Participants Chanhassen Residents CAA Softball 170 85 CAA Baseball 575 250 Minnetonka Baseball 1,500 625 Organization Total Participants Chanhassen Residents CCHA 805 290 Minnetonka Hockey 1,109 163 Organization Total Participants Chanhassen Residents C3 Lacrosse 805 290 Minnetonka Lacrosse 220 60 Chaska & Chanhassen Football 1,109 163 39 Economic Development Commission Item March 14, 2023 Subject Business Retention & Expansion (BR&E) Program Follow-up Section DIRECTOR'S REPORT Item No: F.1 Prepared By Sam DiMaggio, Economic Development Manager File No: SUMMARY The Economic Development Commission should review the Business Retention and Expansion Programs results to date and recommended modifications. BACKGROUND On December 14, 2022, the EDC discussed the implementation of a Business Retention and Expansion (BR&E) Program and made recommendations to staff concerning the make-up and distribution of the survey. Since then, staff has worked with the Mayor and City Manager to create an introduction letter sent via postal mail to 27 manufacturers. Inside the body of the letter, there was a link to an online survey. Of the 27 initial letters: One (1) survey was completed. Three (3) businesses no longer operate in Chanhassen - mail returned to city hall. No responses from 23 of the businesses. Staff then worked with Greater MSP and the SW Chamber of Commerce to find email addresses and was able to locate 13 direct business contacts. These contracts then received a follow-up email and electronic link to the survey. Thirteen (13) manufacturers were sent a follow-up email (SW Metro Chamber and Greater MSP). Ten (10) of the businesses didn't have email addresses, so no follow-up has been completed at this time. Staff received one additional survey response from this initiative. To date, two surveys have been returned completed. DISCUSSION 40 The EDC should discuss the results from the first round and should discuss next steps. RECOMMENDATION Staff is recommending the EDC send out one final mailing along with a paper copy of the survey prior to moving on to the next segment of businesses. ATTACHMENTS BR&E Round 1 Update 41 Legal Name Doing Business As Primary Contact Name Primary Contact Title Notes Air Liquide Electronics U.S. LP Air Lqide Advnced Eqp Systems Bryan Smith Director of Engineering Survey received follow-up meeting scheduled Federal Package Network Inc. Steven R Dakolios President Survey received and follow-up complete Bevens Creek Vineyard and Nursery Wendell Schott President Letter via mail and follow-up via email Dewane Outdoors, Inc. Regal Connection Chris Dewane President Letter via mail and follow-up via email Full Throttle Print and Imaging, LLC Jim Beckman President Letter via mail and follow-up via email Fedex Office and Print Services, Inc. Fedex Denny Purdie Manager Letter via mail and follow-up via email Financiere Lully F Inc. Smartrac Technology US Inc. Dan Beutz Vice President Letter via mail and follow-up via email Bercom International, LLC Handy Products Co. Matt Dehne VP of Operations Letter via mail and follow-up via email Flextool Corporation Federal Moulding Kevin Fuller President Letter via mail and follow-up via email Custom Fab Solutions, LLC Larry Vortherms General Manager & Vice President Letter via mail and follow-up via email Cordem Corporation Robert Mullin President Letter via mail and follow-up via email Agnitron Technology Inc. Andrei Osinsky President Letter via mail and follow-up via email Control Concepts Inc. Kathie Eliason Director of Administration Letter via mail and follow-up via email Emerson Process Management Power & Water Solutions, Inc. Mark Anderson Facility Manager Letter via mail and follow-up via email Exlar Corporation Joseph Alvarez Engineering Director Letter via mail and follow-up via email Flaherty-Green and Associates, Inc. Adair Flaherty Owner Letter via mail - no email available Cam. Industries, Inc. Paul Granos CEO Letter via mail - no email available Beutz Woodworks Dan Beutz Principal Letter via mail - no email available Cobra Business Operations Software, Inc. Cindy Cameron President Letter via mail - no email available AAA Carbide Letter via mail - no email available Advanced Quality Drain Letter via mail - no email available Don Anthony's Boat Lift Services, Inc. Letter via mail - no email available Cherree Theisen Sales Assoc., Inc. Letter via mail - no email available Fms Sign Products Letter via mail - no email available Federal Plastics Corp Letter via mail - no email available Bimar Ortho Inc Letter Returned - no longer in business Drymax Kevin Eichhorn Principal Letter Returned - Business moved to Eden Prairie Asco Power Services, Inc. Letter Returned - Business moved to Chaska 42