BUSINESS & COMMUNITY DEVELOPMENT

BUSINESS & COMMUNITYDEVELOPMENT2020 ANNUAL REPORT

STRENGTH THROUGH ADVERSITY

2 B U S I N E S S D E V E L O P M E N T C O M M U N I T Y R E P O R T 2 0 2 0

The year 2020 brought unforeseen challenges. As we came to realize COVID wasn’t going away, our community response became one of supporting, adapting and overcoming. Many lodging, restaurants, retail and service businesses need patronage to survive, while grocery, home improvement and outdoor recreation are among sectors generally thriving.

Disaster Loan ProgramMandan and 37 other cities make up the N.D. Opportunity Fund, a revolving loan program. When COVID hit, leaders approved disaster assistance to provide working capital to small businesses, up to $50,000 with 0% interest and no payments for the first six months.

Business Gift Card BlitzThe City of Mandan kicked in $5 per card from Growth Fund for Mandan Progress Organization spring, summer and fall online flash sales of 400 cards each. Cards with a $30 value were sold for $20. Making up the remaining differential were generous sponsors: Dakota Community Bank, Starion Bank, Security First Bank, American Bank Center, Farmers Union Insurance, BNC National Bank, First Community Credit Union and Gate City Bank. A $6,000 Growth Fund contribution resulted in $24,000 in gift card sales, generating $36,000 in purchasing power for participating Mandan businesses.

Restaurants Allowed Off-Sale of Alcohol During times of limited dining room capacity under COVID state restrictions, the City Commission voted to allow restaurants with a food and beverage alcohol license to sell sealed containers of alcoholic beverages to customers buying food via take-out and delivery.

Liquor License Renewal Extended, Fees ReducedThe City Commission extended 2019-2020 liquor licenses from June 30 through Aug. 31, 2020. The Commission also reduced annual liquor license fees for 2020-2021 by one-sixth or 16.67% for renewals other than off-sale only licenses. The intent was to help offset revenue losses during months when closure was required due to COVID orders.

‘Mandan Strong’ Program Provides Matching FundsMandan businesses facing reduced revenues due to COVID could apply for matching funds of up to $3,000 to become more innovative, adaptive or diverse to better withstand crisis. The City Commission approved 15 businesses for $36,612 in Growth Fund assistance. Projects included e-commerce websites, point of sales systems to reduce customer contact, and outdoor seating for restaurants. The Studio: Wellness Community of Mandan received

funds toward virtual classes.

Outreach About Federal & State AssistanceThe City of Mandan Business Development staff communicated with businesses about available programs. Publicity included a fact sheet mailed to businesses plus many social media posts, emails, phone calls and visits.

N.D. Commerce Department program summaries show the following assistance for Mandan:• 45 businesses and seven non-profits received $841,295 through the Economic Resiliency Grant (ERG) for expenses to reduce the spread of infection,• 26 hospitality sector enterprises such as restaurants, bars, and entertainment venues received $594,944 toward rent, payroll, utilities and other operational expenses.• 2 hotels received $47,930 through the Hospitality ERG Plus.

Data is not yet available for a Bank of North Dakota recovery program to reimburse interest for financing by businesses experiencing a downturn.

Owners of Bennigan’s added an outdoor seating space with a state Economic Resiliency Grant.

PERSEVERING COVID

W W W . C I T Y O F M A N D A N . C O M / B U S I N E S S D E V E L O P M E N T 3

Library, Downtown Park Enhancement Projects UnderwayThe Morton Mandan Public Library project includes an approximate 8,000-square-foot library addition with a new entrance/atrium, public meeting room that can seat up to 300 people, public restrooms, and bookmobile garage with equipment storage. The existing 13,000-square-foot building will receive heating, ventilation, air conditioning and electrical upgrades plus door and window replacement, masonry restoration, and new floor/wall/ceiling finishes.

Dykshoorn Park improvements include a main entrance off Fourth Ave NW, permanent decorative fencing, shade sails in front of the band shell, meandering walking paths, lighting elements that tie in the history of the railroad, gas fire pits, and more.

Funding is from an Energy Transfer donation, the Mandan Visitor’s Fund and Mandan Supplemental Environmental Projects Trust. Additional donations are welcomed for library furnishings and equipment. If funds become available, there are plans for a multi-use pavilion in Heritage Park to the east of Dykshoorn Park. Learn more: cityofmandan.com/libraryparksproject.

Lower Bids, More Funding Advance Main St. Project for 2021Re-bid of a Main Street project by the N.D. Department of Transportation (NDDOT) and more competitive pricing will allow for 2021 construction to include new traffic signals and concrete pavement repair.

The project is largely funded through federal and state sources. Additional funding from the Urban Roads Program and Mandan Supplemental Environmental Projects Trust is helping. The City Commission voted to hold on the project in May 2020 due to higher than anticipated bids, causing an overage larger than what could be absorbed locally.

The project includes a four to three-lane conversion from Collins Avenue to 10th Avenue with parking restored on Main’s south side. Curb extensions are planned at intersections from Collins to Fourth avenues. These project components are being implemented with a Main Street Initiative grant to help calm speeding traffic and improve the pedestrian experience.

Renaissance Zone Program Renewed for 5 More Years, ExpandedThe N.D. Department of Commerce – Division of Community Services on Aug. 31 signed a memorandum of agreement with the City of Mandan to renew its Renaissance Zone Program for five additional years through Aug. 31, 2025. The approved Renaissance Zone Development Plan for Mandan updates qualification thresholds and includes nine additional blocks. The expansion bring Mandan’s Renaissance Zone to 37 blocks in total: 35 blocks along Main Street, First Street and the downtown area and 2 blocks in a non-contiguous area along Memorial Highway.

The Renaissance Zone Program is a tool for community redevelopment that provides tax incentives to business and residential property owners to help offset costs for qualified projects. Applications and program details can be found at cityofmandan.com/renaissance.

Energy Transfer leaders joined in celebrating the start of a project to expand and improve the library and park.

About 50 parking spaces will be added on the south side of Main Street between 6th and Collins avenues. Curb extensions with streetscape enhancements on the north side of Main Street

between 4th and Collins avenues will consume about15 spaces. Engineers estimate a net gain of about 35 spaces.

Owners of the Rice Bowl, in operation in Mandan for 27 years, now have their own building

at 107 Fourth Ave NW.

Two-story office building at 222 E Main St. to house Legacy Law Firm and ICON Architectural Group.

Barneys fuel station, convenience store,repair shop and car wash is expanding

at 700 W Main St. in 2021.

DOWNTOWN TRANSFORMATION

BUSINESS RETENTION IMPORTANT TO ECONOMIC DEVELOPMENT


The City of Mandan and Bismarck Mandan Chamber EDC partner on visits and outreach to existing businesses to identify needs, address concerns and assist with opportunities. The program helps retain jobs and investment while fostering growth and development.

EXPANSIONS CONTINUE DESPITE CRISIS

More Bacon Injects New Dollars Into EconomyCloverdale Foods Company received approval from the Mandan City Commission in 2020 for assistance to expand. Cloverdale is investing about $20 million in plant, warehouse and office additions plus a utility upgrade, new equipment and site improvements. Local assistance is being provided in the form of a five-year property tax exemption for structural additions.

To be eligible for an exemption as a new or expanding business, state law requires certification as a primary sector business. The business must add value to a product or service to create new wealth in the economy. The business also must export the vast majority of products or services beyond our state.

Cloverdale also qualifies for a Bank of North Dakota interest buydown on financing. The Mandan Growth Fund and Bismarck Vision Fund committee voted to split the required 35% local share of the buydown in the form of loans for $134,615 each at 0% interest.

Cloverdale expects to add 128 jobs for an estimated total of 512 in five years. Production increased 23% in the past year, going from 33 million to 41 million pounds. Projected 10% year-over-year growth could double that number by 2028.

$4 Million Approved for New Lineworker Training FacilityThe U.S. Economic Development Administration in August 2020 announced a $4 million grant to the North Dakota Association of Rural Electric Cooperatives to construct a new lineworker training facility in Mandan. The EDA grant will be matched with more than $1 million in investment from rural electric cooperatives and collaboration with Bismarck State College to establish a state-of-the art facility.

The lineworker training program has a 50-year history in Mandan, currently preparing 60 students a year with the knowledge and skills needed to work for rural electric cooperatives, municipal and private utility companies. Study includes classroom, indoor and outdoor lab work and courses to prepare for the commercial driver’s license exam.

The existing building is too small to meet program needs. Only 30 students fit in the classrooms and lab at one time. To learn about setting and climbing utility poles, students are outside, exposed to the elements. The new facility will have an indoor dirt arena, allowing for year-round training.

The NDAREC owns the existing facility and leases it to BSC for their student program. The NDAREC intends to also make the new facility available to rural electric member cooperatives and utility vendors for use in providing additional training to employees. The closest similar facility is at the Mitchell Technical Institute, nearly six hours away. This will be a valued workforce training facility for North Dakota and neighboring states.

The N.D. Association of Rural Electric Cooperatives is separately planning a building remodel in 2021.

The City of Mandan applied for an Economic Development Administration grant in December 2020 with hopes of obtaining $1.1 million toward an approximate $3 million concrete reconstruction project on 34th Street NW and a portion of 30th Ave NW in the Mandan Industrial Park. The project is needed to accommodate the overall increase in truck traffic by Cloverdale and other businesses.

BUSINESS RETENTION IMPORTANT TO ECONOMIC DEVELOPMENT

W W W . C I T Y O F M A N D A N . C O M / B U S I N E S S D E V E L O P M E N T 5

USE OF INCENTIVE & ASSISTANCE PROGRAMSDepending on public benefits and the type of program, assistance is generally structured as a repayable loan, forgivable loan, tax reduction or rebate. Business incentive agreements include accountability and clawback provisions if a recipient were to relocate or otherwise become non-compliant.

Growth Fund. Mandan annually sets aside a portion of 1% local sales tax revenue for economic development. During 2020, the Growth Fund provided $197,475 in loans and matching funds to multiple projects, leveraging other private sector and state funding sources.

Storefront Improvement

OTHER

REVOLVING LOAN FUNDS(LEWIS & CLARK DEVELOPMENT GROUP)

North Dakota Opportunity FundLocal share of Bank of North Dakota Flex PACE interest buydown• Skin Boutique & Hair Lounge• RNR, LLC Building (Legacy Law Firm)

USDA Intermediary Relending Program Funds• The Paddle Trap• DaWise Perry Funeral Services & Crematory• Coal Country Coffee

OTHER EXPANSIONS• A Child’s Garden

• Kids in Motion Pediatric

Therapy & Wellness

• Malloy Electric

• Midway Lanes

• Signature Events

• Studio: Wellness Community

of Mandan

• The Locker Room (Northern

Trophy & Silk Screening)

OTHER NEW BUSINESSES• Affordable Flooring

• Apache Industrial Services

• Balancing Goat Coffee Co.

• Bright Beginnings Academy

• Burian & Associates

• Crappy to Happy

• Fix It All

• Gunscher’s Auto Repair Plus

• Integra Realty Group

• Lifeless Arts

• Lords-n-Ladies

• Professional Touch Detail Center

• Professional Touch Cleaning

• Red Top Recovery

• Sabor Latino

2021 ANNOUNCEMENTS• Hugo Home Improvement

– new building

• Revive Nutrition

• The Sweat Co.

The Paddle Trap is a new family-friendly restaurant in a remodeled and expanded location previously

home to Rock Point and Captain Freddy’s.

1702 E Main St

Station West Bar & Grill re-openedunder new ownership.

1710 E Main St

Skin Boutique & Hair Lounge DaWise Perry Funeral Services & Crematory

Kramer Subaru

First Community Credit Union

RETENTION & TRANSITIONS


The Mandan Business Brief is published periodically to keep businesses apprised of community happenings, programs, opportunities and issues affecting them. Sign up or find archives atwww.cityofmandan.com/bizupdates.

Latidot Scoop & Gift Shop openedat 104 First St NE in 2020.

ENTREPRENURIAL EDUCATION & OUTREACH

The Mandan Tomorrow – Economic Opportunity and Prosperity Committee strives to entice local investment and strengthen the business community. City of Mandan Business Development and Communications and the Bismarck Mandan Chamber EDC provide staffing. Contributions from commercial lenders, accounting and real estate firms provide a base of support. The pandemic stymied many plans. Carryover from the prior year allowed for a couple activities. Business Start-Up 101.Conducted the eighth annual version of this workshop in-person and virtually in October 2020. Prospective entrepreneurs heard from Mandan business owners about their experiences and gained information about available resources and services.

Third Business Pitch Challenge Planned for 2021. Competition among the top four finalists is scheduled for March 24, 2021, at the Baymont Inn. Cash prizes and services are being offered by many generous businesses. Shifting it to a spring timeframe is an ideal time to plant seeds for a new business while also helping balance the workload for organizers.

The Mandan Tomorrow – Leadership, Pride and Image Committee provides guidance on the joint community marketing program. Supporters for 2020-21 include the City of Mandan, Morton County, Mandan Public Schools, Mandan Parks and Recreation, Mandan Progress Organization and numerous businesses.

Community Calendar. Based on positive feedback received about the first calendar produced for 2020, public and private entities again collaborated on a 2021 calendar to share important dates and resource information. The calendar was mailed to Morton county addresses, posted on partner websites and at mylocalevents.org.

Online Videos. Six new online videos are helping to welcome new residents, attract workforce and tell the story of the community’s evolving makeup, excellent quality of life and opportunities for success. The videos showcase people who moved to Mandan for employment or business, highlighting views of newcomers about the community’s hometown atmosphere, supportive structure and enjoyable things to do. The videos can be used by recruiters and human resource directors to convey that anyone from anywhere can find happiness and success in Mandan.

MARKETING & PROMOTION

MORTON COUNTY LABOR FORCE

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019800

850

900

950

1,000

1,050

1,100

1,150

9,000

9,500

10,000

10,500

11,000

11,500

12,000

Average Employment

Establishments

14,000

14,500

15,000

15,500

16,000

16,500

0

100

200

300

400

500

600

700

800

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Unemployed

Employed

Labor force grows by 1% in 2019

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019800

850

900

950

1,000

1,050

1,100

1,150

9,000

9,500

10,000

10,500

11,000

11,500

12,000

Average Employment

Establishments

14,000

14,500

15,000

15,500

16,000

16,500

0

100

200

300

400

500

600

700

800

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Unemployed

Employed

*Includes only employers liable for unemployment insuranceSource: Labor Market Information Center, Job Service North Dakota, QCEW Unit

MORTON COUNTY EMPLOYERS1% increase in employers in 20192% larger average employment

1% LOCAL SALES TAX REVENUE

High of nearly $2.9 million; 23% ahead of 2019

COMMERCIAL & INDUSTRIAL PERMITS

2018 2019 20202011 2012 2013 2014 2015 2016 2017

$60

$40

$20

$0


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$0

1% RESTAURANT & LODGING TAX COLLECTIONS

2018 2019 20202011 2012 2013 2014 2015 2016 2017

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$0

2% HOTEL OCCUPANCY TAX COLLECTIONS$62,690 in 2018, down 12.5% from prior year

20182011 2012 2013 2014 2015 2016 2017 20202019

$20,000

$40,000

$60,000

$80,000

$0


7% ahead of 2019 at nearly $523,000


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$60

$40

$20

$0


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$0


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$0


20182011 2012 2013 2014 2015 2016 2017 20202019

$20,000

$40,000

$60,000

$80,000

$0

MANDAN POPULATION

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Millions

ResidentialCommercialUtilitiesAgricultural

MANDAN’S PROPERTY BASETaxable Valuations More Than DOUBLED Since 2010

Commercial Base TRIPLED

24% 24% 26% 25% 24% 27% 30% 32% 33% 34%

NOTE: Agricultural property accounts for less than 1% of Mandan’s property tax base.

20192010 2011 2012 2013 2014 2015 2016 2017 2018

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$0

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

CONTINUED GROWTH

Utilities

Agricultural

Commercial

Residential

24%

24%

26%

25%

24%

27%

30%

32%

33%

34%

24% increase from 2010, most recently estimated at 22,752 people

120 units in 2020; 95 single family homesNEW RESIDENTIAL UNITS

20192011 2012 2013 2014 2015 2016 2017 2018

100

200

300

400

500

600

700

0

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

CONTINUED GROWTH

Single Family

Other Units

2020

COMMERCIAL & INDUSTRIALPERMITS

New, Remodel & Additions$37 million in 2020


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$60

$40

$20

$0


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$0


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$0


20182011 2012 2013 2014 2015 2016 2017 20202019

$20,000

$40,000

$60,000

$80,000

$0

Milli

ons

Milli

ons

NOTE: Agricultural property accounts for less than 1% of Mandan’s property tax base.

MANDAN’S PROPERTY BASE

Taxable valuations more than DOUBLED in past 10 yearscommercial base TRIPLED

20192011 2012 2013 2014 2015 2016 2017 2018

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

$0

Utilities

Agricultural

Commercial

Residential

24%

26%

25%

24%

27%

30%

32%

33%

34%

2020

33%

7

ECONOMIC INDICATORS

2% HOTEL OCCUPANCYTAX COLLECTIONS

Up 4% in 2020


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$60

$40

$20

$0


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$0


2018 2019 20202011 2012 2013 2014 2015 2016 2017

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$0


20182011 2012 2013 2014 2015 2016 2017 20202019

$20,000

$40,000

$60,000

$80,000

$0

Source: Labor Market Information Center, Job Service North Dakota, LAUS Unit

Mandan Progress OrganizationThis group of businesses and volunteers persevered to hold the Mandan Rodeo in 2020, had to cancel other major events due to COVID, but also pivoted to offer small, more frequent activities to attract visitors and introduce new guests to businesses. Examples included the Chocolate Walk, Shamrock Shuffle, Business Bingo, Gift Card Blitz, Mandan Market, Carpool Cinemas, Park-n-Parade, Oktoberfest, Treat Trail, Santa’s Arrival with Small Business Saturday, Great Gift Giveaway and Candy Caravan.

Curvy Flamingo

ROLE OF MANDAN’S BUSINESS DEVELOPMENT & COMMUNICATIONS DEPARTMENT

• Serving as an information resource.

• Marketing the area.

• Fostering entrepreneurism.

• Facilitating business start-ups, retention and expansions.

• Attracting and introducing new businesses to the area.

• Linking business prospects with officials and prospective partners.

• Bringing interests together to ensure all needs are addressed.

• Linking prospects with gap financing sources.

• Tracking business project performance.

Mandan City Commission

Tim Helbing (Mayor), Mike Braun, Joe Camisa,Amber Larson, Dennis Rohr

Growth Fund Committee

Don Boehm (Chair), Jeff Erickson (Vice Chair),David Lehman, Wayne Papke, Chad Peterson,Rocky Reddig, Maria Walen, Sherwin Wanner,Lee Weisbeck

Renaissance Zone Committee

Darren Haugen (Chair), Stephanie Bohn,Tim Helbling, Al Kuntz, Rhonda Mahlum,Darren Schmidt, Karmen Siirtola

STAFF

Business Development &Communications Director ........Ellen Huber

Communications & Community Services

Coordinator ................................Kari Schmidt

CITY OF MANDAN BUSINESS DEVELOPMENT & COMMUNICATIONS | 205 Second Avenue NW, Mandan, ND 58554

phone: 701.667.3485 | www.cityofmandan.com/businessdevelopment

MARKETING & PROMOTION

Treat Trail at Mandan Tire Center

Support Local. New online video interviews with business owners are being released every two weeks to help acquaint area residents with the people behind shops, restaurants and other businesses. Viewers can learn about products and services available as well as benefits of doing business locally. Seven businesses have been featured so far and numerous merchants received t-shirts, shopping bags and gift tags to share with customers as part of the campaign.

Documents

BUSINESS & COMMUNITY DEVELOPMENT