Regional Marketing in Southeast

October 2016

A project funded through the collaboration of the Southern Minnesota Initiative Foundation and Community and Economic Development Associates

Executive Summary

As the region continues to grow in light of public and private economic development initiatives like “Destination Medical Center” which will leverage local and regional assets with health care industry trends and other initiatives such as “Journey to Growth” and “ Together” which will leverage regional growth in order to diversify and expand the regional economy, several similarly focused conversations began to occur in different circles throughout the region. These conversations centered on a common question: what does this growth mean for me and my community?

In response to this reoccurring question, the Southern Minnesota Initiative Foundation led a collaborative strategic planning session with stakeholders from across southeastern Minnesota to analysis and prioritize possible efforts aimed at building the region as a whole. One of the issues that rose to the surface was the need to collaboratively market the opportunities within the region. Community and Economic Development Associates was awarded a grant from the Southern Minnesota Initiative Foundation to lead a series of discussions with regional stakeholders to identify possible opportunities, as well as foster the region’s natural tendency for collaboration, to better leverage all of the economic development initiatives for the region’s benefit.

This document will outline the series of discussions held, the ideas that surfaced, possible courses of action to grow our region. The scope of this project is exploratory in nature and while this study does not itself intend to initiate the implementation of the recommendations discussed, it is meant to provide “from the field” information to larger and more comprehensive economic development efforts to utilize for the benefit of all.

Background & Regional Meetings

Project Overview Community and Economic Development Associates (CEDA) was awarded a $20,000 grant in the spring of 2015 from the Southern Minnesota Initiate Foundation’s “One Big Idea” community growth initiative that culminated in March 2015. The purpose of the grant was to lead a regional marketing strategic discussion with a variety of stakeholders from across the region in order to better leverage current and projected economic activity. The stakeholders discussed opportunities for collaboration within the region, especially in light of initiatives such as Destination Medical Center (DMC) and Journey to Growth (J2G). DMC alone is estimated to create an additional 35,000+ jobs in the Rochester area and draw an estimated 7 million annual visitors.

The project contained three phases:

1. Organization: Research existing opportunities and stakeholders, develop meeting format, set up first series of regional meetings. 2. Regional Meetings: Conduct meetings with regional stakeholders. Assess strengths, weaknesses, opportunities, and threats. Develop better communication between stakeholders. 3. Create Report & Discuss Next Steps: Compile results, finalize strategic plan report, review and discuss next steps with stakeholders, and present report.

Regional Meetings Three regional meetings were held in three communities:

 Harmony, population 1,020, Fillmore County  Dodge Center, population 2,670, Dodge County  Lake City, population 5,063, Goodhue and Wabasha Counties

The communities were selected because of their geographic locations within the region and the availability of space to hold such a meeting.

Meeting Format Meetings were designed to elicit reflective responses from stakeholders about topics related to their communities and businesses, and how they would envision positioning themselves given greater opportunities to do so.

The underlying assumption of the discussion was that over the next several years the region will experience a steady pace of growth in population and visitors because of initiatives such as DMC and J2G. Based on this assumption, the basic outline for each meeting was the following series of questions:

(Italicized comments indicate notes about the preceding question)

 What brings you here?

COMMENT: A basic icebreaking question meant to help the facilitator and others gauge the background and interests of the participants.

 What excites you about opportunities in the region (short & long term)?

COMMENT: Because this project was conceived from dialogue surrounding regional growth, this question is meant to set a gauge on short and long-term, positive, feelings within the region.

 Setting the scene (imagine that you are…): o A family moving to the area but unsure where to live or what job opportunities are available for the other spouse. o A visitor with limited knowledge of the area looking for entertainment. o A local resident looking for job opportunities, a place to call home, and/or entertainment.

COMMENT: At this point of the meeting participants were asked to consider three target audiences; a family moving to the area, a visitor to the area, and a current resident. Participants were also asked to consider future discussion and responses in the context of these three target audiences, in addition to their experience. The purpose of identifying a target audience in this way is to help participants focus discussion on topics relative to the underlying assumption. Participants were asked to consider the needs and perspectives of these audiences.

 How do we tell our story? o What marketing activities do you engage in currently? . Any past activities? . What are you considering for future use? . Any failures? Success stories?

COMMENT: This question is designed to gauge past, current, and possible future marketing strategies that have or will be implemented and their effectiveness. Understanding what has been tried, what has worked or failed, and what future goals are can help assess future strategies.

 “If money wasn’t an object…” o What could happen?

COMMENT: The purpose of this question is to gauge the “big idea” dreams and goals of the group. Even in a visionary planning session, otherwise pragmatic participants might unknowingly limit the scope of their discussion if they know money, politics, etc. are a limiting factor. By discussing big ideas, even seemingly unfeasible ideas, long term goals can be discussed more candidly, barriers can be identified, and realistic strategies to accomplish short and long term goals can materialize.

 SWOT Analysis – Specific to Marketing our Region o Strengths o Weakness o Opportunities o Threats

COMMENT: A longstanding method for strategic planning, identifying strengths, weaknesses, opportunities, and threats from the perspective of participating community stakeholders and how individual responses to each relate to one another and then relate to the baseline discussion questions will formulate the strategic plan.

Stakeholder Meetings

This section will review the outcomes of the three stakeholder meetings. Each meeting is summarized at the beginning of the subsection with notes from the discussion following. Wrapping up each subsection is an analysis of each meeting’s discussion. Harmony

Meeting Summary The following is the summary of the regional stakeholder meeting held in Harmony, Minnesota on October 5, 2015. There were 15 participants representing both public and private interests in Fillmore, Houston, and Winona Counties in Minnesota and Howard County in Iowa.

Stakeholders repeatedly returned to tourism and small-town lifestyle as themes during the discussion. Specific takeaways include:

1. Coordination among regional communities will elevate everyone. Direct competition is unnecessary and detrimental to overall regional progress. Because there is limited access to infrastructure, including mass transit and broadband internet, communities should focus on promoting strengths instead of other communities’ weaknesses.

2. Low cost of living and access to scenic land is a unique selling point for residents new to the region. This benefit should also be promoted to retirees interested in an active and outdoor lifestyle.

3. The area currently focuses on two prongs of advertising: day visitors and new residents. Both require different marketing strategies. Bigger picture, the region is situated in a unique geological formation and is known as the Driftless Region; an area of the upper Midwest that escaped glaciation in the last ice age that caused the stunning bluffs, rivers, and valleys found in much of southeastern Minnesota. This very unique feature should be utilized when advertising to both day visitors and new residents.

4. Marketing as a region may be expensive but with a common message and goal, will be productive.

Baseline Questions What are the current marketing activities you participate in? Successes, failures?

 Local travel/tourism guides available online and in physical copy  Budget can be an issue, but other organizations can help advertise collaboratively (chamber, tourism bureau, etc...).  Advertising to two groups: day visitors and new residents. Both have different marketing strategies. MLS service and realtors are good contacts for potential residents, can work with them to discover what their wants are to develop an effective marketing plan. Get their priorities straight, might get communities to improve in those areas.  Niagara Cave markets in a way that does not specify the city it is in, but instead makes it kind of a regional attraction. Makes for a good way to bring people in to the region, not necessarily just

Harmony. Outsiders getting a flavor through businesses and the people here form their opinions on that.  Realtors have their own ways to promote certain areas of the region, like videos and other marketing tools. But what if there was a region-wide brand with a website to link all realty and activities in the area, to highlight and compare parts of the region on a boarder level.  In Pennsylvania, there was a regional TV station that ran ads only for the one region. Expensive, but if we could target a specific area and other areas, people flipping through TV will catch promotional videos and advertisements for various areas and activities.  Billboards have been used but can be very expensive. They can get be effective though.  Internet is the new way to get information to the public, very economical, can get great ad placement.  Maybe use billboards to advertise regional information to draw people to a regional site, or specific community advertisements. Getting the word out can help because some people don’t see smaller regional communities online because of Rochester’s proximity and “gravitational pull.”  Targeted online ads could be helpful. Some people can be targeted for specific ads through Facebook and other sources.  We can also send those billboards out to other areas, more targeted ads for unemployment in other states or whatever.  There could be a lot more collaboration between communities and organizations, leads to teaming up and leveraging opportunities.  Blog site, people can come and tell a good story about the region. Gets the word out, could even give money/coupons back to people if they tell a great story that gets a lot of hits and stays up in first. Fantastic way to spread the word about the good things of a whole region. Also can be used to share information effectively.

If money was not an object, what would you like to do that you currently can’t?  Some people want to live on smaller acreages, let’s advertise that opportunity.  Adjust zoning and other regulations to promote the type of growth we want to see.  Need a better way to commute, better and bigger roads to make travel easier and safer.  Regional leaders need to sit around a table and agree to cooperate.  Travel to other regions to see how they support and market regional growth.  Many fixed income people retire in the area, could we freeze taxes for those over 65 to keep them here and keep them comfortable? The medical community would benefit from this too.  The region is part of the “”, very unique geology, we can market that as a huge strength for people who like outdoor recreation.  Work together across the region to get the “Driftless” brand off the ground. Natural beauty is something we need to take advantage of.  Compared to other areas that are considered beautiful to live, we have a unique landscape and advantages that also do not force you to have to live hours outside of a major employment zone.  Have a simple calculator allowing for the comparison of cost of living to other areas of the country.  South Dakota created TV ads about their quality of life, we could do that too.

SWOT Analysis Strengths  Scenic beauty.

 Middle of everywhere, well positioned to other things.  Cost of living is low.  Excellent education, including higher education, nationally rated education.  Safe communities, low crime.  Many religious choices, many churches.  A lot of bars.  Kids outside playing, very safe even by themselves.  Few fences, very open community.  Natural resources (fishing, trout streams, etc…), and clean air and water.  Job opportunities, many job opportunities.  Demographic uniqueness (live longer, retire cheaper, etc…).  Historic buildings in relatively good condition.  Access to great healthcare across the region, as well as assisted living.

Weaknesses  Keeping young people in the area, promote job opportunities.  Labor shortage.  Competing with Mayo for jobs as a region.  Lacking amenities of the big cities (coffee shops etc…).  Losing businesses because of Rochester competition.  No mass transit.  City infrastructure is generally old, in need maintenance, and upgrading.  Limited workforce housing, lack of housing options in general.  Lack of rental space.  Fillmore County is an “old” county, average age is 42, will lead to a labor shortage later.  No regional marketing strategy, we don’t have a planning region unlike the rest of the state.  Lack of broadband internet access.  Poor cell phone coverage.  Seasonal business cycle, many places close during off season, leaves a lack of choices.

Opportunities  Brain gain: how can we attract 29-40 year olds with families?  Could list real estate, rentals, etc… more effectively.  Mass transit will help support regional businesses and provide opportunities for employees.  Pursue sustainability, promote that as a strength (Niagara Cave built solar farm, how else can we promote/pursue these unique opportunities).  Targeted business incubators.  Available buildings/space, opportunity for new businesses.  Creation of specialized districts for a certain image.  Invest in townhouses, apartments, etc… and workforce housing.  Enlist businesses who need workers to help build workforce housing.

Threats  Environmental impact might be negative if people flood in without proper planning.  Take care of existing people and things in the area, so they do not go away.  Must be careful of crime rate, people we are inviting in might clash with the people here.

 Mindset of “no change.” Some will fight change, might be negative to people that move here (immigrants?).  Money going in to Rochester, do they really want to be regional? Will they follow through?

Harmony Stakeholder Meeting Analysis Generally, the discussion was optimistic with topics that centered on two main themes: the area’s low cost of living/variety of lifestyles available and coordination amongst the communities in the region. The stakeholders had a positive outlook on the region’s future. They considered the opportunities Destination Medical Center (DMC) presents and agreed that leveraging regional growth would benefit all. The discussion was primarily in relation to activity in the region, centered on Rochester, but discussion also trended towards regional centers such as La Crosse, WI and Decorah, IA.

The first main theme centered on the region’s relatively low cost of living relative to the amenities available. Area residents and visitors enjoy affordable living with the lifestyle they choose. Outdoor recreation and the related lifestyle opportunities dominated this part of the conversation. It was discussed how residents can live in close proximity to unique natural features, a variety of quality parks and trails, and other activities such as hunting, fishing, ATV/snowmobiling, and boating, canoeing, tubing, etc… and still have access to quality jobs. It was also discussed that the area is already a visitor destination because of the outdoor recreation opportunities as well as arts and cultural opportunities. The stakeholders were convinced that these activities, in conjunction with affordable living, represented an opportunity to attract and retain residents, visitors, and business but that there was much work to be done to cooperatively communicate these opportunities; especially to visitors. If initiatives such as DMC bring the additional visitors/new residents that are currently being projected, the region has a tremendous opportunity to connect with and benefit from them.

The other theme of the meeting was in regards to better work cooperatively as a region. With new opportunities to attract residents and visitors, it is imperative to be more efficient as a whole. Because most business owners in the region are busy entrepreneurs or value the traditional “Minnesota Nice” attitude, the group was quick to point out that a common tendency of residents within the region is to focus on the task-at-hand instead of working collaboratively. The group agreed that this approach was short-sighted and that better communication between businesses, organizations, and governments would not only create scales of economy to more efficiently conduct business and provide services to existing residents, businesses, and tourists but to also open new doors for growth within the region.

Suggested Strategies to Address Stakeholder Remarks 1. Highlight natural features/region’s geography – “the Driftless Area.” 2. Utilize existing entities (chambers of commerce, regional tourism groups, etc…) to communicate common brand. 3. Appreciate the uniqueness of the opportunities present within various sub regions within southeast Minnesota and leverage that variety of activities/destinations to entice people to stay longer, visit more areas, spend more, etc… 4. Develop more activities for winter/off-season. 5. Promote the variety of southeastern Minnesota lifestyles available…arts, outdoors, agriculture, etc… What does it meant to live, work, or play in SE MN? 6. Better connect resources throughout region. 7. Better communication between communities/entities throughout region. 8. At a local and regional level, continue to plan for the future – where does the community/region want to be? Commutate those plans to residents, visitors, and between organizations.

Lake City

Meeting Summary The following is the summary of the regional stakeholder meeting held in Lake City, Minnesota on October 6, 2015. There were 14 participants representing both public and private interests in Wabasha, Goodhue, and Winona counties in Minnesota as well as representatives from regionally based organizations.

A common reoccurring theme for this stakeholder meeting was that the region needs to work together, in addition to tourism and small-town lifestyle. Specific takeaways include:

1. Regional collaboration is something stakeholders hear about throughout the region but progress has been difficult. Most seem to recognize the importance of working together to generate a regional identity, and most are prepared to begin serious discussions about how to do this. However, many still focus their energy strongly on their own community as opposed to the region.

2. Chambers of commerce and tourism bureaus have bold visions but tend to be overly conservative when investing in marketing and communications. If we want to achieve successful regional marketing and planning, existing organizations need to view these expenditures as sound investments in our futures as opposed to expenses.

3. Stakeholders felt that the region tends to focus too much on out-doing immediate neighbors and discount the region’s strategic assets. Coordinating efforts to market the region on a larger scale would be beneficial.

4. Mistrust and self-interest is hurtful to regional collaboration. Stakeholders felt that they have had issues with this locally and regionally in the past, which is a difficult hurdle to overcome.

Baseline Questions What are the current marketing activities you participate in? Successes, failures?  There has been bickering between the regional cities instead of collaboration.  Making sure people are connected to what the city is doing from a marketing/branding perspective, frustrating to move marketing initiatives when people try to bring it down.  Some city governments don’t have a marketing budget and chamber doesn’t market/advertise outside of their city.  Internet marketing for real estate has been successful.  Resistance to change by citizens, organizations, and community leaders.  Finite marketing budget. Dependence on the newspapers to report on events, don’t always feel they get fair treatment by media though.  Have tried to direct mail.  Sometimes difficult to get businesses to commit to advertising.  Digital marketing has been productive.  Winona and Red Wing have done TV advertising.  Utility companies have moved away from bill inserts because people more often get their monthly bills electronically, using social media and success story promotion, moved away from print – billboards are not effective  Focusing on connecting with youth and families through school district.

 Marketing has been successful when the community has a strong self-identity. Not trying to be everything to everyone.  Collaboration with neighboring communities and focusing on strengths has worked well.

If money was not an object, what would you like to do that you currently can’t?  Social media/internet marketing  Promote the arts. Arts are economic development.  Inventory what assets we have as a region. We need to start with what we have to be able to move forward. We need to create a road map.  Create day trip opportunities using high speed rail and public transportation.  Have access to useful community demographic projections and statistics for planning purposes.  Redesign property tax system.  Invest in youth population.  Shift in how we look and think about issues.  Better leverage unique human resources like famous residents, businesses, or personalities to promote the area.

SWOT Analysis Strengths  Region has good jobs, diverse and high paying compared to other areas of the state.  Natural resources like Lake Pepin and the Mississippi River.  Diverse economy  Access to institutions of higher education.  Proximity to Chicago and Twin Cities.  Healthcare access.  Economic center – Rochester.  Vineyards.

Weaknesses  Marketing, communities and businesses don’t put enough resources into marketing.  Empower the creative side, have the “creatives” come up with the ideas.  Mass transportation in individual communities and through the region doesn’t exist.  Not many seem to be embracing DMC/other regional growth.  Cost of healthcare and health insurance.  Apathy, resistance to change.  Worker shortages.

Opportunities  DMC and growth in Rochester/region.  Strong manufacturing base in place, have infrastructure we are primed for growth.  Educational institutions within the region.  Distribution of information about jobs/training opportunities.  “Heroes to Hire” program – better engaging military veterans in our regional workforce.  A lot of students graduating with 2 year degrees stay in region, 4 year not so much, how can we attract them too?  More effectively lobby legislators.  Zip Rail.

 Some people think DMC might spoil the region, higher taxes.  Make better use of active neighborhood organizations.  International airport in Rochester. Threats  National trends with healthcare, what if Mayo laid-off workers? How would we deal with that?  Availability of workforce.  Natural disasters.  Resisting tendency to panic (from a public body perspective).  Apathy from residents and civic leaders - hoping someone else will solve the problems instead of being proactive.  Lack of universal broadband internet within region.  Natural fear of change; especially diversity.  Failure to understand that downtowns are a piece of infrastructure and play a big role in people’s perception of your town.

Lake City Stakeholder Meeting Analysis In contrast to the Harmony stakeholder meeting’s optimistic tone, the Lake City meeting was more cautioned. Discussion centered on themes of tourism, lifestyle opportunities, investment in infrastructure, and regional collaboration. Participants were concerned about the future viability of local economies and stability associated with one industry [health care] dominating the region. While there was consensus that proper planning could mitigate concerns about the region’s economic stability, there was worry that past failures, or perceived failures, could hinder future efforts. This discussion was also primarily in relation to regional activity, centered on Rochester, but discussion was also influenced by regional centers such as Winona, Red Wing, and the Twin Cities metro area.

Tourism was the theme discussed at most length. Like the Harmony meeting, participants generally discussed the opportunities and risks associated with Lake City’s tourism industry and the variety of lifestyle opportunities available in the region. The natural beauty and geography of the area, with Lake Pepin, the Mississippi River and the adjacent bluff lands, as well as the numerous communities provide access to a variety of employment and recreation. Stakeholders believed that a more aggressive outward marketing presence would be beneficial, as past practices were felt to be fairly conservative and only inwardly focused on short term goals. It was suggested that a collaborative, long term approach to marketing the area would be more beneficial.

Transportation and related infrastructure was also a reoccurring topic. The group felt that the region was well positioned to take advantage of population centers; primarily the Twin Cities and Rochester but also Chicago, IL. Stakeholders were concerned that the projected growth in visitors and residents would cause strain on existing transportation infrastructure. The group agreed that a renewed interest in transportation innovations and investment would be wise as some projects such as the proposed passenger rail project “Zip Rail” will take significant investment and many years to complete.

Unlike the other stakeholder meetings, there was a significant overtone of negative concerns expressed about projected growth in the region, primarily linked to Destination Medical Center (DMC). This concern was related to perceived mis-trust among organizational and governmental entities, perceived lack of planning at various levels, and general unspecific factors associated with growth. While significant concerns were expressed, stakeholders generally acknowledged that solutions to overcome

these negative concerns would most likely be found in regional efforts that foster better communication and collaborative planning.

Suggested Strategies to Address Stakeholder Remarks 1. Better communication between local and regional entities in areas of planning. 2. Participate in regional planning efforts. 3. Cooperatively market opportunities between communities that share commonalities/within sub-areas of the region in addition to the region as a whole. 4. Highlight unique natural features of the region (Lake Pepin, Bluffs, Mississippi River, etc…) 5. Harness existing tourism activities to develop additional avenues for marketing. 6. Continue to invest in local and regional infrastructure (roads, scenic byways, trails, waterways, etc…) and promote their use/availability to residents and visitors.

Dodge Center

Meeting Summary The following is the summary of the regional stakeholder meeting held in Dodge Center, Minnesota on October 7, 2015. There were 11 participants representing both public and private interests in Dodge, Olmsted, Steele, Fillmore, and Waseca counties in Minnesota.

Stakeholders in Dodge Center identified three key points in their community identity and potential market positioning:

1. The region should take advantage of being known as a place where residents live long, healthy lives.

2. When communities throughout the region celebrate success, their neighbors should celebrate that success with them. Starting or reviving regional collaboration between communities, joint festivals and other events will contribute to the interconnected feel of the region and begin to establish more trust and cooperation.

3. Produce a video for the region that includes footage of all of our hidden gems, and to market that video online and around the country to attract residents. Baseline Questions What brings you here? Excites you about the opportunities in the region short and long term?  The opportunities for fast-tracked collaboration on a scale not done before in this region.  The number of regional assets and marketing opportunities; the hidden gems that we need to share, and to coordinate efforts on lesser known opportunities.  The region is growing and it will help everyone, each city/sub region within SE Minnesota has unique strengths.  Excited to start telling our story - we’re not very good at telling our story, especially to millennials and those unfamiliar with our area.  Excited about growth; we need to manage it though.  Always happy about economic development, excited about seeing individuals and businesses grow along with the region.  Here to steal ideas from others!  We need to market to workers, for better workforce. Once we start talking as a region people will listen. What are we each going to do to help? What actionable items!

What are the current marketing activities you participate in? Successes, failures?  Byron tried marketing via radio and trade shows for a few years, now have discontinued that. City had a goal to get over a population of 5,000, but now have hit that goal and ended their incentive programs. City has a local guide book but now advertises mostly through relationships. School system was so good they had to close open enrollment, now is a driving factor for people coming to live in Byron.  Stewartville highlights in its marketing materials that the city is close to major highways and the Rochester Airport. Trade shows, community education, and the city working on tourism brochures for the rest stops.  Chamber of Commerce for Stewartville mainly utilizes social media, but avoiding being “white noise” is difficult.

 Would like to try a video discussing the region, can’t do that on our own need the region and market it to other parts of the country/world.  DMC will have a large marketing budget, is there a way we can utilize that for the region as a whole instead of only Rochester?  Make it known that there are other ways to get to the metro areas than just Highway 52: I35.  Highway 14 being a 4 lane from Owatonna to Mankato has had a great effect. Dodge Center also saw a positive impact when the 4 lane was expended there as well.

What if money wasn’t an object?  More hockey arenas - it would be a big draw for small town Minnesota but are generally too expensive for small cities on their own. Especially because people make a lot of decisions based on their kids’ athletics, school, programs, moving costs, etc.  Public beautification – the bypass in dodge center comes with a cost, the main ways of entry to the town are ugly now.  Elaborate transportation system.  More bike trails to connect the region.  ‘The Brand’ – what are we going to call ourselves? The , the are places, experiences, what is ours? Act globally, think regionally. Make it feel more intimate and connected with a transportation system to unite the 500,000 people in the region that are geographically individuals.  Regional identity taskforce, search out a national firm that focuses on this type of effort.  Other parts of MN and other regions in different states are better at talking as a region. Results in more effective discussions/projects with state agencies like MNDot, DNR, etc… Region must be leveraged.

SWOT Analysis Strengths  There is a lot of unknown uniqueness in the region, Red Wing Boots, for example.  State parks, natural connection and beauty.  Lower cost of living, kids can bike ride to school and friend’s houses, we can leave doors unlocked. Quality of life and amenities.  High quality school districts.  See a lot of green - grass and crops and trees, pristine beauty.  Tough people in this climate, outdoorsy people, seasonal change/variety is good, we get criticized for winter but it’s poorly understood outside the region.  Drivable to different unique areas like the metro, bluff country, and Lake Superior. We live in the middle of everywhere, not the middle of nowhere.  Relatively good roads in the region.  Environmental factors, clean air and water.

Weaknesses  The 4th season (winter) or at least its perception as a negative.  Don’t have a lot of equity players, struggle with entrepreneurship and business development, how do we better coordinate efforts?  Everyone is fiercely independent - don’t understand how to work together as well as they could.  Other cities’ EDA professionals don’t call each other with opportunities.  Have a history (and/or perception) of not playing nice, i.e. Rochester and Austin.

 Tax system, state changes the way they fund things forcing us to change and increase taxes sometimes, MN pays more in taxes.  Healthcare costs are high.  Tax structure and healthcare stability, if legislature would say to businesses this is your structure for the next 5 years, private business could plan and a boom would take place.  “Older generation has the mentality that we live to work, younger generation is that you work to live.”  How will we sustain any regional efforts over the coming decades?  Do we have capacity? Do we need a regional agency? Need a way to incentivize involvement with regional collaboration.

Opportunities  DMC and Journey to Growth.  Hormel Foundation in Austin – food industry is phenomenally important in the region.  Site selectors say we actually work well between government and private entities…even though our perception is that we don’t…maybe we don’t give ourselves enough credit?  Rural people are more personable – this part of MN shares more similarity with Texas than Texas does with Arkansas.  We are a growing area, some communities are not, but there has been a long general trend of growth.  Decent but inconsistent access to broadband internet.  Broadband internet connectivity, we would love to be able to brag about. Could be the “Hotspot of the Midwest.”

Threats  Medical industry volatility, increasing healthcare costs.  Aging population.  Changing populations and diversity.  Beware of other places with cheaper labor.  Shifting ideals of the younger generation, looking for personal benefit rather than to contribute?  Generation of commuters, not going to give free time when spending so much time driving.  Millennials work hard and smarter, productivity can vary, work from home as opposed to that cubicle but can still contribute.  “Since when does it take courage to leave work on time?”  Technology is a large part of this shift.  Minorities are going to struggle if we don’t support them with resources, some averse to change. How to we engage them and develop leaders?  There is a language barrier, are we doing enough to provide resources so that they can learn the language?

Dodge Center Stakeholder Meeting Analysis The discussion at the stakeholder meeting in Dodge Center was more similar to the stakeholder’s discussion in Harmony; it was more optimistic about the opportunities regional growth initiatives, especially DMC may present. Discussion themes from this meeting centered on the opportunities of promoting the region’s quality of life, better regional collaboration on common issues, and better show casing the unique qualities of individual communities. Additionally, concern about issues tied to rapid regional growth were discussed, but stakeholders generally felt that proper planning could help avoid or alleviate issues that might arise. This was also the only stakeholder meeting to discuss opportunities related to the Interstate 35 corridor. As with the other two stakeholder meetings, discussion at this meeting was primarily in relation to regional activity, centered on Rochester, but was also influenced by regional centers such as Owatonna, Austin, Faribault, and the Twin Cities metro area.

The main theme of discussion was the high quality of life that the region is known for. Life longevity, access to recreational opportunities, close proximity to employers and world-class health care were discussed at length. Consensus of the stakeholders was that while Rochester will see the largest growth curve, a certain percentage of that growth will also occur throughout the region. With many of the region’s residents working or shopping in Rochester, communities throughout the region should position themselves for growth by continuing to invest in and protect “quality of life” type issues including schools, parks and recreation, public infrastructure, and other activities that satisfy the social needs of the region, specifically as the needs evolve between generations of residents. The stakeholders acknowledged that change will be inevitable and need to be ready.

Regional collaboration was again another central theme of discussion. Similar to the previous two stakeholder meetings, opportunities to better leverage resources to the benefit of the region was tied to several topics. One particular example was a regional hockey arena in Dodge County – not every community in that area could support such a facility but through a cooperative effort, this particular venue has been successful, and that similar projects could replicate those efforts.

Stakeholders also discussed the uniqueness of individual communities; that every community doesn’t need to do or provide everything but that there are opportunities for communities to promote and enhance those unique characteristics. For example, a community may have more residential opportunities than tourism opportunities; the community should not feel that it is at a disadvantage because it has different strengths but instead promote and enhance its own strengths and assets.

The proximity to several transportation corridors such as Highways 52 and 14 and Interstate 90 and 35 was also discussed; that these routes provide opportunities for new commercial and industrial development, tourism, and employment. Stakeholders felt that while the Highway 14 and 52 corridors get a lot of attention locally, Interstate 90 and 35 provide tremendous opportunities for the region and should not be forgotten, even though the region’s population and economic center (Rochester) isn’t geographically centered on these two routes.

Suggested Strategies to Address Stakeholder Remarks 1. Coordinated promotion of region, with the appreciation of the individuality of communities/sub-regions. 2. Leverage and promote access to infrastructure. 3. Continue to coordinate as a region but improve communication. 4. Promote unique features of the region – whether that is commercial brands or natural features. 5. Plan for and be prepared to adapt for growth and change within the region.

Common Themes

At each of the meetings, stakeholders were asked to participate in the discussion utilizing their unique knowledge of the region and assess discussion questions through the lenses of the project’s three target audiences, 1) a family moving to the area but unsure where to live or what job opportunities are available for the other spouse, 2) a visitor with limited knowledge of the area looking for entertainment, 3) a local resident looking for job opportunities, a place to call home, and/or entertainment. Within that context and even though participants viewed issues through slightly different lenses, the following common themes emerged:

1. A need for marketing/branding on a regional level in southeast Minnesota.

Stakeholders made abundantly clear that there many activities, events, places, jobs, etc… throughout the region that aren’t marketed effectively or in some cases marketed at all. While stakeholders didn’t suggest that individual marketing activities should be abandoned, a strong desire for a central, hub and spoke style, method of communication within the region was expressed.

2. The importance of multiple, unique, but interdependent identities within the region, e.g. medical, agriculture, industry, residential life, and tourism.

There was a general reluctance among stakeholders to identify the region as one particular entity or brand, as opposed to multiple identities under one umbrella. While certain industries (health care in Rochester for example) carry significant weight throughout the region, the region itself is dependent on the success of multiple unique industries and resources that are not equally distributed across the region. Stakeholders reflected this sentiment as they discussed the unique assets their respective areas of the region represent.

3. The present opportunity to plan for the region’s projected growth.

Drawing from experience of the region’s historical growth patterns, stakeholders were generally optimistic about growth projections, especially in relation to economic development initiatives like Mayo Clinic’s Destination Medical Center. However their optimism wasn’t without caution. Collaborative, regional-level, planning that considers where people are going to and from, and related effects of those movements on housing, transportation, retail, employment, social needs, etc..., are vital to productive and efficient growth. While it was recognized that some areas will see different amounts or kinds of growth, the region as a whole has a stake in orderly growth.

The caution expressed by stakeholders was not unexpected. Threats identified through the discussion related more to fears of the general “unknown” common with change as opposed to a specific threat or danger. However, stakeholders were also quick to point out how the region was able to remain stable throughout past period of growth: investment in infrastructure, access to high quality services like education and healthcare, and regional collaboration throughout the past has created the opportunity before the region today.

4. The region’s unique geography, particularly in relation to its proximity to population centers.

Stakeholders recognize that the region’s geography/natural beauty provides a unique identity. Prairies, forests, rivers, lakes, and bluffs make up different parts of southeast Minnesota and the

consensus among stakeholders was that it should be used accordingly in building a regional identity. The proximity of geographic features to one another and to population centers sets the region apart and should be celebrated. Most of the region’s best natural attractions are within a one hour drive of most cities in the region.

5. The region’s access to recreational activities.

Similar to the region’s unique geography as an attribute that should be highlighted in regional marketing efforts, access to recreation and social activities (parks, trails, museums, arts, cultural activities and more) is another major asset of the region. Stakeholders felt that, while room for more activities exist, existing activities meet the physical and social needs of most residents and tourist but better communication amongst organizational entities regarding specific events and opportunities is needed.

6. A cooperative mindset of organizations and individuals of varying backgrounds, even in light of natural self-preservationist tendencies.

Stakeholders felt that organizational entities within the region are generally willing to work together towards common goals, but they also recognized that natural tendencies towards self- preservation may hinder optimal collaboration. In order to maximize regional collaboration, all entities need to continue having a seat and voice at the table in regards to regional issues and planning. Recommendations & Next Steps

Based on the discussions with regional stakeholders, several recommendations have been identified and should be considered for further discussion and/or action:

1. Define the brand.

a. A regional brand could be made up of several factors important to the region.

b. Don’t force it. A truly regional brand needs relevance across the area it is supposed to represent or it won’t be adopted. Southeastern Minnesota is a construct of political boundaries, defining such an area may mean creating several sub-regional brands that are relevant to a particular area but tie to the greater region as a whole. Attempting to create a “one-size-fits-all” brand may be self-defeating.

c. Use the brand. In order to be effective, the brand must be used by the major and minor players in the region alike. In order to be used by major and minor regional players, it must be relevant to them. If a “regional brand” is created but not relevant to major and minor players in the region (including it being utilized in their individual marketing efforts) the brand will lack the buy-in necessary to be effective.

2. Promote our strengths to leverage opportunities.

a. Regional stakeholders agreed on several of our regional assets. Utilize these assets in the creation of a regional brand.

b. Utilize the region’s strengths to address weaknesses and avoid threats, especially those discussed by stakeholders.

i. Several strengths were universally recognized by stakeholders across the including the region’s quality high of life and access to recreational and social amenities. Focus on the most universal strengths.

3. Build a centralized clearinghouse to collect and distribute marketing information.

a. “Hub & spoke” style system to collect information in a uniform fashion from entities and distribute to targeted audiences such as visitors, prospective residents, and current residents.

b. This activity doesn’t have to re-create the wheel. Several opportunities already exist through local chambers of commerce, Explore Minnesota, and nonprofit organizations who regularly and actively promote local and regional activities and events. Perhaps better coordination between such leading organizations or simply better educating the public about those resources would help connect opportunities.

4. Find opportunities to improve regional collaboration and problem solving.

a. Leverage existing organizations and resources. Identify service gaps and create feasible solutions to eliminate or minimize those gaps.

b. Continue to meet and share best practices on various regional levels.

c. Southeastern Minnesota League of Municipalities, Southern Minnesota Initiative Foundation, Community and Economic Development Associates, Journey to Growth, and Southeast Minnesota Together as well as numerous public agencies continue to have a leadership role to play. Summary

This project called together regional stakeholders and through a series of conversations, discussed ideas, issues, and possible courses of action to harness and leverage assets to the benefit of the region. The scope of this project, while exploratory in nature and not itself intended to implement any of the action items identified, is meant to provide “from the field” information to utilize as a resource for more comprehensive regional economic development efforts.

Southeastern Minnesota has tremendous opportunities before it as it continues to grow. All of the region’s assets must be leveraged in order to plan for and take advantage of these opportunities.