2007

ANNUAL REPORT

BUILDING STRONG BUSINESSES

AND VIBRANT COMMUNITIES
 LETTER FROM THE
DIRECTOR
It is with much pride that we present our 2007 Annual Report to you, summarizing our economic development projects
and success stories for this past year. Again, the AAEDC, along with our communities, partners, and our businesses,
experienced a very successful year.
The AAEDC continues to forge strong partnerships with our businesses, communities, and our local governmental units.
With assistance from our efforts, our businesses continue to create jobs, wages, and tax base; three critical components in
measuring economic success and vitality. Through the use of our economic development programs, the AAEDC assisted
many of our companies with opportunities to grow and prosper in the Alexandria Area and Douglas County.
Much of our work focused on community growth and development in 2007, an initiative that will continue well into
2008. We continue to grow the Alexandria Area as a regional center of commerce and economic activity through long
range community planning and regional initiatives. These community initiatives take dedication and passion, two
characteristics this organization deeply embraces.
We are proud of our accomplishments and hope you see the value in this organization. Please take a few moments
of your time to enjoy the publication and we hope you will continue to support the AAEDC as we continue to forge
partnerships with our businesses and lead our communities as it relates to economic development, growth, and vitality.
On behalf of the AAEDC Board of Directors, Staff and all our partners, we wish you a very prosperous and rewarding
2008.
Best Wishes,

Jason Murray
Executive Director
STAFF & BOARD OF
DIRECTORS

Sarah Willhite David Kjos Jason Murray Roger Blank Patrick Kalina
AAEDC Alexandria Township AAEDC Carlos Township AAEDC
Rick Paulsen Corliss Stark Jim Hafdal Kevin Kopischke Mary New Mark Grandgenett
City of Alexandria City of Alexandria LaGrand Township City of Alexandria Hudson Township Lake Mary Township

INVITED GUESTS:
Al Crowser (Alexandria Light & Power), H. Dan Ness (City of Alexandria), Dan Olson (Douglas County),
Coni McKay (Alexandria Lakes Area Chamber of Commerce), Joel Dahlheimer (Alexandria Township),
and Dave Wolf (Gardonville Cooperative Telephone Association)
I ALEXANDRIA AREA ECONOMIC DEVELOPMENT COMMISSION
 MISSION
STATEMENT
The mission of the Alexandria Area Economic Development Commission is to drive the economic
wealth and stability of our communities.

The mission of the Lakes Area Economic Development Authority is to support the mission of the Economic
Development Commission by providing fair and equitable resources. The Authority, fully implemented
in 2004, was established to formalize the funding for economic development and to bring the political
subdivisions together for a unified economic development effort.

Through a joint strategic planning process between the AAEDC and the LAEDA, core initiatives and
strategies were defined to develop a shared vision of the future and to identify goals and objectives against
which progress toward achieving that vision can be measured.

In 2007, the AAEDC focused on the following core initiatives and strategic objectives:

1. Community – To collaborate on community efforts that strengthen our economy by creating

& retaining jobs and expanding tax base with respect to our area’s natural resources.
• Explore redevelopment opportunities
• Proactive advocacy efforts related to the business community agenda
• Partner in Workforce Development
• Community marketing initiatives that identify the area’s marketable assets & competitive
advantages
• Communication Role

2. Business – To maximize the area’s potential as a thriving regional hub for businesses, jobs,
and economic opportunity.
• Business Attraction & Economic Diversification
• Business Retention & Expansion
• Business Assistance & Development

3. Resources – To maximize financial and personal resources by working to avoid duplication of

efforts and to build new revenue centers.
• Industrial Parks
• Revolving Loan Funds
• Municipal Financing Sources

4. Organization – To be a creative, highly trained and professional economic development organization

that serves as the lead entity for coordination and implementation of the area economic development
effort.
• Funding
• Partnerships
• Leadership
• Growth

Funding provided by the Lakes Area Economic Development Authority (LAEDA) whose membership is
comprised of the City of Alexandria, City of Garfield, Alexandria Township, and LaGrand Township; with
supporting annual appropriations from the Townships of Carlos, Hudson, Lake Mary, and Douglas County.

2007 ANNUAL REPORT 1

 JOBZ MINNESOTA
PROJECTS
At the close of FY 2003, Governor Pawlenty unveiled the Job Opportunity Building Zones (JOBZ)
program as a new rural Minnesota economic development plan. The goal of JOBZ is to stimulate
economic development in rural Minnesota by providing local and state tax exemptions to offer
assistance to value-added manufacturing and industrial, or high wage service-type businesses. Retail
and housing projects are not eligible to receive JOBZ benefits.
Local entities participating in the JOBZ program include the Cities of Alexandria, Brandon, Garfield,
and Osakis; and the Townships of Carlos and LaGrand. Designated industrial sites in these areas
offer growing and expanding businesses the opportunity to substantially benefit from tax exemptions
through December 31, 2015.
Tax exemptions apply only to qualified businesses. Businesses will become qualified for JOBZ through the execution of
a Business Subsidy Agreement (BSA). On an annual basis the company must report to the local unit of government their
progress in creating jobs and wages.

COMPANY: Heritage Transport Inc.

PARTICIPATING ENTITY: City of Alexandria
PROJECT TYPE: New Construction
SQUARE FEET: 13,000
BUSINESS DESCRIPTION: Short and long haul transporting company
that operates flatbeds and stepdecks for full load and LTL freight loads.
HOURLY AVERAGE WAGE & BENEFITS: $10.56
ESTIMATED PROJECT COSTS: $1,000,000
JOBS RETAINED: 7
1
JOBS CREATED: 12

COMPANY: Aagard Group, LLC

PARTICIPATING ENTITY: City of Alexandria
PROJECT TYPE: Expansion
SQUARE FEET: 24,000
BUSINESS DESCRIPTION: Manufacturer of packaging machines.
HOURLY AVERAGE WAGE & BENEFITS: $15.00
ESTIMATED PROJECT COSTS: $1,100,000
JOBS RETAINED: 60
1
JOBS CREATED: 5-10
1
Jobs created figure confirmed in BSA agreement totalling full-time and full-time equivalent projections within 1-5 years.
Job numbers reported in BSA agreements are usually minimums and actual number may be much higher.

JOBZ ECONOMIC
IMPACT REPORT
ESTIMATED PROJECT COSTS: $2,100,000
NEW CONSTRUCTION SQUARE FEET: 37,000 sq. ft.
1
JOBS RETAINED: 67
2
JOBS CREATED: 22
Jobs retained figure totals full-time and full-time equivalent positions.
1

2
Jobs created figure totals full-time and full-time equivalent projections within 1-5 years.
2 ALEXANDRIA AREA ECONOMIC DEVELOPMENT COMMISSION
 2007 RLF
PROJECT HIGHLIGHTS
COMPANY: ADVANCE O & P
Advance O & P, a new startup company offering Orthotic and
Prosthetic fabrication, adjustment, and service, has received assistance
from the AAEDC in business planning and financial packaging. In
addition, the company applied for and received a $35,000 Developers
Revolving Loan Fund loan to assist with the purchase of machinery to
fabricate and alter orthotic and prosthetic devices. The primary lender
for this project was Viking Savings Association of Alexandria.

COMPANY: BLACKWELL ASSOCIATES

Blackwell Associates has applied for and received a $50,000 Greater
Alexandria Industrial Network Revolving Loan Fund (RLF) loan
to assist the company in purchasing a 12,000 sq. ft. facility in the
Alexandria Industrial Park. This facility will be leased to Genetiporc,
an international swine genetics company that has a branch in Alexandria
and will allow the company to hire an additional 5 employees. The
primary lender for this project was Bremer Bank of Brandon.

COMPANY: IMC PROPERTIES

IMC Properties dba Integrity Manufacturing Company has received a
$50,000 Greater Alexandria Industrial Network revolving loan to assist
with the purchase of a 4,500 sq. ft. facility and acreage in the City of
Carlos, located on County Road 13. The company specializes in CNC
and custom fabrication of parts and components, and will be adding 3
full-time employees to their staff with this facility purchase. Viking
Savings Association was the primary lender on this project.

COMPANY: NDJ PROPERTIES, INC.

NDJ Properties LLC dba Alex Brick and Stone, Inc. has received a
$50,000 Developers Revolving Loan for the purchase of property
for a new facility near the Alexandria Airport. The purchase of this
property will allow the company to relocate, and will provide greater
business access, equipment and product storage, and larger facility
space. The company will be retaining 7 employees and will be hiring
an additional full-time employee and one additional part-time employee
to meet additional sales demand. The primary lenders for this project
are Bremer Bank of Alexandria and the Minnesota Business Finance
Corporation.

COMPANY: SEEDS OF HOPE, LLC

Seeds of Hope,
Seeds of Hope, LLC has received business startup assistance in the form
of a $25,000 Developers Revolving Loan Fund loan from the AAEDC.
Seeds of Hope is a startup business specializing in 24 hour continuous
care for special needs pediatrics. The business is located in Carlos
Township, and employs four individuals. The primary lender for this LLC
project was First State Bank of Alexandria.

2007 ANNUAL REPORT 3

 2007 TIF/PROJECT
HIGHLIGHTS
COMPANY: BRENTON ENGINEERING COMPANY
Brenton Engineering Company of Carlos Township has completed a
105,000 sq. ft. facility expansion and remodeling project which has
enabled the company to increase their production capabilities, hire an
additional 62 employees, and become more competitive in their market
segment. The AAEDC assisted Brenton Engineering by helping the
company to secure Tax Increment Financing (TIF) benefits through
Douglas County, and by promoting the benefits of a local expansion to
Brenton’s parent company, ProMach.

COMPANY: CARLOS TOWNSHIP/CITY INFRASTRUCTURE GRANT

The AAEDC has assisted Carlos Township and the City of Carlos
in securing a $213,825 Water Infrastructure Grant from the State of
Minnesota to extend municipal water throughout the Carlos Corners
Industrial Area. This water extension will allow current and future
companies to access the municipal water source to reduce the cost of
construction and fire protection. This grant was secured through an
application to the Business Development Public Infrastructure Grant
Fund.

COMPANY: FGD, LLC

fgd, LLC of Alexandria has received assistance from the AAEDC in
securing Economic Development/Tourism Tax Increment Financing
benefits from the City of Alexandria to help offset the infrastructure
costs of constructing a hotel on South Broadway in Alexandria. This
construction project will allow the company to hire 16 individuals within
5 years, and will feature an 80 room hotel with an indoor pool and
whirlpool. The estimated total project cost is $6.5 million. A $50,000
Developers Revolving Loan Fund loan was approved to assist with
the financing of this project. The primary lender for this project was
American National Bank of Alexandria.

COMPANY: GENDELL PARTNERS ALEXANDRIA, LLC

The AAEDC has assisted Gendell Partners Alexandria, LLC in securing
Redevelopment Tax Increment Financing (TIF) from the City of
Alexandria for their redevelopment project on the corner of Broadway
and 10th Ave W in Alexandria. The project included the removal
of multiple outdated commercial and residential structures and the
construction of a new commercial building to be leased by Walgreens
along with 11 town homes totaling 22,720 sq. ft. Approximately 40 to
45 employees will be employed within this development.

4 ALEXANDRIA AREA ECONOMIC DEVELOPMENT COMMISSION

 2007 TIF/PROJECT
HIGHLIGHTS
COMPANY: HAWTHORNE STREET LLC
The AAEDC has assisted Hawthrone Street LLC in securing
Redevelopment Tax Increment Financing benefits for their
redevelopment and construction project at 123 3rd Ave East in
Alexandria. The project removed an existing substandard commercial
building and corrected environmental problems with the site. When
completed, the new development will provide 12,268 sq. ft. of office/
retail space for a number of businesses and will be the corporate
headquarters of ORB Management Corporation of Alexandria, which
currently employs 11 people.

COMPANY: PFENINGER WAREHOUSING, LLC

Pfeninger Warehousing, LLC of Hudson Township has received
assistance from the AAEDC in securing Tax Increment Financing
benefits from Douglas County to assist with the infrastructure costs
Pfeninger
of constructing a 50,000 sq. ft. warehousing facility. The completion
of this project will require the company to hire an additional 5 to 7
Warehousing, LLC
full time employees within the next two years to meet the company’s
increasing demand for product handling and distribution services.

COMPANY: SILVER MAPLE INVESTMENTS, LLC

Silver Maple Investments of Alexandria has received assistance from
the AAEDC in securing Redevelopment Tax Increment Financing
benefits from the City of Alexandria to help offset redevelopment
costs for an area located north of 3rd Ave E between Kenwood St.
and Lake St. This project will remove a number of substandard
commercial structures and replace them with a roughly 100,000 sq. ft.
building containing office, retail, and condominium space that will be
constructed in three phases and will have five levels. When completed,
phase 1 construction will employ an estimated 24 individuals and phase
2 construction will employ another estimated 25 individuals.

PROJECT ECONOMIC
IMPACT REPORT
ESTIMATED PROJECT COSTS: $39,944,725
NEW CONSTRUCTION SQUARE FEET: 344,988 sq. ft.
1
JOBS RETAINED: 168
2
JOBS CREATED: 195
REVOLVING LOAN FUND DOLLARS UTILIZED: $260,000

Jobs retained figure totals full-time and full-time equivalent positions.

1

2
Jobs created figure totals full-time and full-time equivalent projections within 1-5 years.
2007 ANNUAL REPORT 5
 COMMUNITY
INITIATIVES
Throughout its 17 years of service, the AAEDC has spearheaded and been involved with many
community planning projects that strive to address the needs and wants of the citizens and
businesses of Douglas County. This past year has been another strong year for community
planning, with a number of important initiatives being undertaken in a continued attempt to
better serve the citizens and businesses of our area.

REGIONAL AIRPORT TASKFORCE

At the request of the Cities of Alexandria and Glenwood, and Douglas and Pope Counties,
the AAEDC has acted as a leading entity during the organization and establishment of the
Regional Airport Taskforce, which is leading the information gathering and analysis of the
possibility of a Regional Airport Concept to serve the future needs of citizens and businesses
of our region.
Thanks to the support of all four municipal entities, Phases I of the Regional Airport Analysis
Project have been completed. Discussions for Phase II of this project are currently underway
for possible future completion. An exact time line has not been determined for this project.

ALEXANDRIA NATIONAL GUARD ARMORY PROJECT

The AAEDC has assisted the City of Alexandria, Lakes Area Recreation, and the
Minnesota National Guard in gathering information and meeting facilitation for a new
National Guard Armory Project in the Alexandria area. The Alexandria Community
has been notified by the National Guard that we are nearing the top of their priority
project list for a new Armory construction project. Multiple meetings have been
organized with community representative and National Guard representatives to
discuss the details and obligations of a new Armory in the community. No exact time
line has been established for this project at this time.

ENTREPRENEUR BOOT CAMPS

The AAEDC and the Small Business Center of the Alexandria Technical College have
combined their efforts to offer a pair of Entrepreneur Boot Camp sessions to the community
and the region. These classes focus on providing information on business startup and growth
processes, and have received excellent reviews from attendees and presenters alike.
Areas of focus for the Entrepreneur Boot Camps include: Business Structure, Start-up Issues,
Business Start-up Financing, Accounting 101, Human Resources for the Small Business,
Sales and Marketing Basics, Web needs for the Small Business, Insurance for the Small
Business, and others. Classes run for two full days, and are structured to assist any area
entrepreneur or small business owner. The fall 2007 and spring 2008 Boot Camps are
sponsored by Bremer Bank, First State Bank of Alexandria, and Glenwood State Bank.
6 ALEXANDRIA AREA ECONOMIC DEVELOPMENT COMMISSION
 COMMUNITY
GROWTH
During the 2007 year, the Alexandria Area community has experienced growth at an unprecedented
level. These and other growth projects continue to highlight the Alexandria area and all of Douglas
County as a community that is vibrant, growing, and striving to meet the needs of our citizens.

Douglas County Hospital Expansion Project

In October of 2007, the Douglas County Hospital announced a $27 million, 80,000 sq. ft. facility expansion project
that will provide the hospital and community with ample patient bed space for the next 30 years. The construction
project includes a new three-story addition that will feature orthopedics, medical-surgical inpatient rooms, and a
women’s and children’s unit.
As one of only eight county-owned hospitals remaining in the state of Minnesota, Douglas County Hospital
continues to operate in the black (positive cash flow) and grow its variety of patient services year after year.
Douglas County Hospital employs more than 600 people, has an annual payroll of $23.4 million, and has provided
quality care to everyone, no matter their income or insurance coverage since 1955.

District 206 School Bond Referendum Approval

The residents of Independent School District 206 took to the polls on September 25, 2007 and approved the issuing
of general obligation bonds in the amount of $24.5 million for Phase 1 of a 2 phase plan to acquire and better school
facilities in the following projects:
• Build an elementary school on the donated 48 acres of land on McKay Avenue to hold 500 students from
Kindergarten to 6th Grade.
• The new elementary school will also house space to accommodate 200 children enrolled in the district’s
Early Childhood Education Program.
• District Administration Offices and Community Education Offices will be relocated to the new school
building.
• Purchase of land for a future high school.
• Garfield Elementary School will receive exterior and mechanical repairs.
A Phase 2 referendum will be put up for vote in 3-5 years for the construction on a new high school.

Alexandria Lakes Area Sanitary District Expansion

The Alexandria Lakes Area Sanitary District (ALASD) is in the process of increasing their wastewater treatment
capacity by 1 million gallons per day. This expansion will meet the growing needs of the Alexandria area
community through the next 20 years, and will offer increased protection to our local lakes and waterways through
increased wastewater treatment technology and reduced phosphorus emissions.
The growth in commercial and residential develop within Douglas County and the Alexandria area has spurred this
capacity increase so that current and future residents and businesses will be able to continue receiving excellent
service from ALASD.

Alexandria Area YMCA

The Alexandria Area YMCA has begun its “Complete the Dream” capital campaign with the established goal of
$8,885,000 to construct a facility measuring approximately 56,000 sq. ft., which will feature a variety of program
areas to meet the needs of children, adults, seniors, and families. The Alexandria Area YMCA facility will be
constructed on a 25 acre site on Highway 82, on the west side of Alexandria.
The Alexandria Area YMCA is currently on track for a Fall 2008 Ground Breaking and Fall 2009 Grand Opening.

2007 ANNUAL REPORT 7

 COMMUNITY
EVENTS
Business & Industrial Appreciation Day
The boards of directors of the AAEDC and the Alexandria Lakes Area Chamber of Commerce selected Knute
Nelson, Inc. of Alexandria as the recipient of the 2007 Business & Industrial Appreciation Day (BIAD) Award,
which was presented to the company at the annual BIAD Luncheon held on October 31st at the Arrowwood Resort
& Conference Center in Alexandria.
The Knute Nelson organization was formed in 1948 through the donation of a home and land by the late Senator
and Governor Knute Nelson of Alexandria. Since its formation, the organization has followed the mission of
providing a full continuum of services to older adults to enhance their quality of life. Knute Nelson, Inc. is
affiliated with 15 area Lutheran congregations and is governed by a 9 member Board of Directors. In 2006, Knute
Nelson, Inc. served more than 600 older adults through skilled nursing, rehabilitation and short-term stay, home
care, hospice, wellness programs, and the Nelson Wellness Center. The organization will be celebrating their 60
year anniversary in 2008.
The Business & Industrial Appreciation Day Event has been taking place annually since 1984, and honors a local
business which has met the following criteria:
• Growth in number of employees; the impact of the business on the job market
• Increase in sales and/or unit volume; an indication of continued growth
• Capital Investment; an indication of commitment by the
business to increase community capacity
• Community Contributions; evidence of the business’s
investment of time, skills and resources to assist in
community oriented projects
Knute Nelson, Inc. was selected to receive the 2007 BIAD
award because of the company’s continued growth in
employees (nearly 300), the stable growth in number of
older people served from throughout our community and
region, the company’s recent construction and expansion of
the Nelson Gables facility, and the company’s commitment
to donating, volunteering, and hosting community
betterment projects. 2007 BIAD Trophy presentation to Knute Nelson CEO Mark Anderson
(center) by Yvonne Kinney-Hockert (Chamber Board President) and
David Kjos (AAEDC Board President)

Manufacturers & Support Industries Breakfast

The week of October 22-26, 2007 was celebrated throughout the state of Minnesota as Manufactures Week. In
local recognition of the contributions of our manufacturing and support industry businesses, the AAEDC hosted
the 2nd Annual Manufacturers & Support Industries Breakfast on October 24th at the Broadway Ballroom in
Alexandria.
In the continued tradition of this event, a complimentary breakfast was provided to the 100+ event attendees, and
an educational session was presented. The presenters for 2007 were Tom Gillaspy (MN State Demographer) and
Tom Stinson (MN Chief Economist), who discussed the changing demographics of Minnesota and their economic
impacts on businesses and communities.
The 2007 Manufacturers & Support Industries Breakfast was sponsored by Alexandria Light & Power, Alexandria
Technical College, American National Bank, Bremer Bank, First State Bank of Alexandria, and Runestone
Electric Association.

8 ALEXANDRIA AREA ECONOMIC DEVELOPMENT COMMISSION

 EMERGENCE AS A
REGIONAL CENTER
To illustrate the strong and vibrant regional-center economic climate in the greater Alexandria
Area, a sampling of the 2007 commercial investments in the public and private sectors with an
estimated project cost minimum of $80,000 included:
Estimated Project Cost Square Footage Type of Project(s)
Retail
Walmart $234,332 10,000 sf Commercial New
Gendell Partners Alexandria LLC $1,339,774 14,810 sf Commercial New
Alex Brick & Stone $85,000 - Commercial Alteration/Addition
Professional/Service
410 Properties $100,000 3,699 sf Commercial Alteration
Equity Investments Unlimited LLP $337,478 3,970 sf Commercial New
Wells Fargo Bank $216,815 1,500 sf Commercial Alteration
City Centre Plaza $299,759 11,600 sf Commercial Alteration
GOT Properties $740,436 10,904 sf Commercial New & Alteration
Glenwood State Bank $1,037,724 14,930 sf Commercial New
Gendell Partners Alexandria LLC $1,369,950 15,000 sf Commercial New
Hawthorne Street LLC $1,027,449 12,268 sf Commercial New
State Bank & Trust $674,540 6,000 sf Commercial New
Silver Maple Investments $737,936 8,500 sf Commercial New
US Bank $154,133 - Commercial Alteration
Hens & Merten Corp. $621,250 6,250 sf Commercial New
Denel Properties $187,731 1,440 sf Commercial Alteration/Addition
Utah Group $873,432 8,400 sf Commercial New
Distribution
Dakota Supply Group $2,063,251 32,500 sf Commercial New
Tastefully Simple $266,939 600 sf Commercial Alteration
Heritage Transport $1,056,620 13,000 sf Commercial New
Dining
Pazzo Di Bella, LLC $93,053 4,555 sf Commercial Alteration
Whiskey Creek Wood Fire Grill $570,000 4,774 sf Commercial Alteration/Addition
Thief River Tacos $120,000 2,584 sf Commercial Alteration
Industrial
Northern Food & Dairy $850,350 1,200 sf Commercial Alteration/Addition
Aagard Group, LLC $1,100,000 24,000 sf Commercial Alteration/Addition
3M $2,300,000 60,000 sf Commercial Alteration/Addition
Nordic Aseptic $677,040 9,300 sf Commercial Alteration/Addition
Construction
Zacher Excavating $167,344 3,920 sf Commercial Alteration/Addition
Amusements
fgd, LLC $4,847,514 55,000 sf Commercial New
Source: 2007 public record commercial building permit activity - City of Alexandria.

2007 ANNUAL REPORT 9

 610 Fillmore St. Suite 1 – Alexandria, MN 56308
Phone: (320) 763-4545 – Toll Free: (866) 296-4545 – Fax: (320) 763-4457
E-mail: aaedc@rea-alp.com – Web: www.alexmn.org