HomeMy WebLinkAbout08.15.11 EDA Packet
AGENDA
REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING
August 15, 2011
6:00 P.M.
CITY COUNCIL CHAMBERS
Jason Bartholomay, Chair
Christy Fogarty, Vice-Chair
Todd Larson, Mayor, Terry Donnelly, Julie May,
Ex-Officio: Doug Bonar, Geraldine Jolley
Action Taken
2. Pledge of Allegiance
1. Call Meeting to Order
a. Swearing in of Ex-Officio Members
3. Approve Agenda
4. Citizen Comments / Presentations
5. Consent Agenda
a) EDA Minutes (7/18/11 Regular)
b) Budget Details: June & July 2011
c) Bills: 7/16/11- 8/12/11
6. Public Hearings
7. Continued Business
a) Economic Development Strategic Plan Policies
8. New Business
9. City Staff Reports/Open Forum/Discussion
a) August Activity Report
b) The Role of Local Elected Officials in Economic Development
c) 2nd Quarter Minneapolis/St. Paul Market Overview
d) Business Excellence Awards (verbal)
10. Adjourn
Sa-
MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
Regular Meeting
July 18,2011
1. CALL TO ORDER
The meeting was called to order by Chair Bartholomay at 6:00 p.m.
Members Present: Bartholomay, Fogarty, Larson, May
Members Absent: Donnelly
Also Present: Kevin Schorzman, Interim City Administrator; Tina Hansmeier,
Economic Development Specialist; Cynthia Muller, Executive
Assistant
2. PLEDGE OF ALLEGIANCE
3. APPROYEAGENDA
MOTION by Larson, second by Fogarty to approve the Agenda. APIF, MOTION
CARRIED.
4. CITIZEN COMMENTS/PRESENTATIONS
5. CONSENT AGENDA
MOTION by Fogarty, second by Larson to approve the Consent Agenda as follows:
a) Approved Meeting Minutes May 23, June 6, June 27, 2011
b) Received Budget Details April and May 2011
c) Approved Bills 5/22/11 - 7/15/11
APIF, MOTION CARRIED.
6. PUBLIC HEARINGS
7. CONTINUED BUSINESS
a) Economic Development Strategic Plan Policies
Members felt staff was going in the right direction. This item will be brought to
the August EDA meeting.
8. NEW BUSINESS
a) Amendment to Contract for Private Development - AI( Performance
Graphics
The owner of AK Performance Graphics has requested a one year extension to the
contract to complete improvements to the building and to subordinate all loans
necessary for completing the improvements. The extension would be to July 15,
2012.
Member Fogarty agreed with the one year extension. Member May stated her
primary concern was in the beginning this was going to happen rapidly. She
EDA Minutes (Regular)
July 18,2011
Page 2
wanted to make sure there wasn't something the EDA needed to be aware of. Mr.
Adam Kurth, owner, stated he has almost met his subsidy amount for
improvements. This is his busy time of the year and needs an extension to
complete the improvements. They have completely gutted the interior of the
building and most improvements have been done. They have gone above and
beyond minimum improvements. Extensive renovation will also be done to the
exterior beginning in September. Member Bartholomay also agreed with the
extension. MOTION by Fogarty, second by Larson to approve the First
Amendment to Contract for Private Development for AK Performance Graphics.
APIF, MOTION CARRIED.
9. CITY STAFF REPORTS
a) June/July Activities Report
Pizza Hut will be going into the former Beans & Bakery location in the
Charleswood Marketplace. This Little Piggy is a catering business going into the
former Oasis Market on TH3. Staff has held ribbon cuttings for Big Sombrero
and Savers Choice. A new broker is representing the former Burger King site.
Magnificent Me daycare (formerly Rising Stars) has received a conditional use
permit to operate a daycare at Charleswood Marketplace.
Mayor Larson noted the Farmington Business Association held their block party
and car show downtown Saturday night. The streets were packed and the event
was very successful.
Economic Development Specialist Hansmeier noted that the McVicker lot has
been sold and a groundbreaking will be held soon.
The Farmers' Market is going very well. A new vendor will be joining the
Market. Customers are very pleased with the new location.
Chair Bartholomay noted there will be a GROW Farmington event Thursday.
Member May asked when the EDA will receive an update on Vermillion River
Crossing and how often should the EDA receive an update. Member Fogarty
suggested quarterly. Interim City Administrator Schorzman spoke with
representatives a month ago. He suggested staffbring an update when there is
news. Staff does talk to them more than quarterly. Member May asked about the
CDA housing. Staff stated building has begun and work will be showing above
ground soon. Member May would like an update quarterly at the EDA meetings.
She requested the developer come to the EDA meetings once or twice a year.
Staff will ask them to come to the October EDA meeting.
Chair Bartholomay asked if staff will be looking for a new broker. Economic
Development Specialist Hansmeier explained the current broker agreements call
for both parties upholding their obligations for six months after the expiration of
the contract. Staff will go out for RFP closer to the end of that time period. The
EDA Minutes (Regular)
July 18, 2011
Page 3
EDA has the Riste lot left to sell and the City has the old senior center building to
sell.
10. ADJOURN
MOTION by Fogarty, second by Larson to adjourn at 6:23 p.m. APIF, MOTION
CARRIED.
Respectfully submitted,
Cynthia Muller
Executive Assistant
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City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO: EDA Members
FROM: Lee Smick, City Planner
AICP, CNU-A
SUBJECT: Economic Development Strategic Plan
DATE: August 15,2011
INTRODUCTIONIDISCUSSION
In the Spring of 2011 the policies and strategies for the Economic Development Strategic Plan
were discussed at the EDA Workshop. At that workshop, staff requested that the EDA
determine which priorities would rank 1St, 2nd, and 3rd in order to determine the tasks for staff in
the next 6 to 12 months. After the rankings were tallied, it was determined that the top ranking
for the priorities was Business Recruitment/Expansion and Retention programs followed by the
creation of a marketing plan and the need for resources for Economic Development.
The next step is to hold a strategic planning facilitation session at the EDA meeting on August
15, 2011 concerning the above-mentioned items. This facilitation session will provide the
following benefits:
. The facilitation session will name action steps and determine which priorities staff should
work on in the coming months.
. The facilitation session will also give the EDA an opportunity to comment on the proposed
timeline and budget template as shown in the attached Exhibit and as shown in the sample
below:
1. 1 Organizing for Success: Farmington's Economic Development Strategy
Action 1.1.1: Develop a path and philosophy for Economic Development in Farmington
Implementation Steps:
(a) Review the existing Mission Statement.
Responsibility: EDA, staff Timeline: October 2011
Budget:
(b) Review the existing Vision to build consensus for Economic Success
Responsibility: EDA, staff
Timeline: October 2011
Budget:
(c) Review SWOT analysis for 2011 Strategic Plan.
Responsibility: EDA, staff Timeline: October 2011
Budget:
(d) Develop a policy for a "business friendly" approach to economic development.
Responsibility: EDA, staff Timeline: December 2011 Budget:
· Remove barriers to conducting business within the city.
Responsibility: EDA, staff Timeline: December 2011 Budget:
· Improve the regulatory environment for businesses by ensuring that
development review process and other policies are streamlined, transparent,
and consistent.
Responsibility: EDA, staff Timeline: December 2011 Budget:
(e) Review City status/progress on economic development priorities on a quarterly
basis.
Responsibility: EDA, staff Timeline: January 2012 Budget:
(f) Update overall Strategic Plan every 3 years and continue to seek buy in from key
local economic development players.
Responsibility: EDA, staff Timeline: July 2014 Budget:
1.2 Organizing for Success: Roles and Responsibilities
Action 1.2.1: Create a 7-member Economic Development Board of Commissioners
(EDA).
Implementation Steps:
(a) Develop steps to implement a 7-member Economic Development Board of
Commissioners (EDA).
Responsibility: EDA, staff Timeline: October 2011 Budget:
(b) Develop a transition plan from the City Council to the 7-member board.
Responsibility: EDA, staff Timeline: December 2011 Budget:
(c) Compile list of past interested residents to serve on Board.
Responsibility: EDA, staff Timeline: September 2011 Budget:
(d) Determine duties and responsibilities of EDA.
Responsibility: EDA, staff Timeline: December 2011 Budget:
(e) Prepare organizational and procedures manual.
Responsibility: EDAJ staff Timeline: February 2012 Budget:
ACTION REOUlRED
Lee Smick, City Planner
AICP, CNU-A
Provide
STRATEGIC ECONOMIC DEVELOPMENT PLAN
2011-2014
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Introduction
The key to successful communities is their heart and soul-the unique cultures, landscapes, traditions and
values that people cherish-and with people themselves taking action to enhance and sustain the places
they love. Many communities are ready to protect their unique character, deeply engage their citizens, and
meet the challenges of the 21st Century. Economic Development is one of th9i,s~'h~hallenges and citizens
can assist with it by shopping locally and creating awareness to other citizens"abo~tthe businesses within
the City.
The Role of the Economic Development Strategy
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It is not possible, with a single definition, to capture all the fac' so economic deveIOR'm,E:!nt. It is usually
described either in terms of objectives such as employment creation, wealth generatidIR'ill~hd the
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Improvement of quality of Irfe, or as a process that mfluences growth, competitiveness, sustalllabllrty and
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What is most common amongst all definitions is the implied and,'I!in some cases, explicitly recognized, role
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of government, as it is responsible for creating th~l,environment in whi2h economic development occurs.
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Because a consensus definition for economic development does not exist, tHere is no single strategy, policy
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or program direction for achieving success. The unique mix'OfI,geographic,political, economic and social
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attributes of a community will present a distinctive s~t ,qf,challerigesi11iarH:l requires different solutions, for
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economic development to be successfu,," ' 11:"111" I"
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Because this plan is a Iliving"mdocumentJltit will change ahd adapt over time to shifting economic, political
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and social conditions. Local leaders maVdecide to adjust vatious parts of the Strategy, including
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benchmarks and performance njeasures, a's appropriate. Monitoring the progress of each strategic
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component will'enabledecision-m~ker? to determine the effect of policies and programs on overall goals,
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and identify what elemen~s ofthe Strategy need to be expanded or altered.
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Why Undertake an Economic Development'Strategy?
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The Economic D~I~~lopment Str~!!~tky describes a roadmap for the City and its partners (private, nonprofit,
public sector) illustrating how they can work together to enhance employment, investment and quality of
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life opportunities that 1!l"~I).efit the entire community. The strategy is based on the premise that the
community can develop vi~!,ph'~ of what it wants to become, determine the strategies in which it has the
best chance of being succ:essful and apply resources to achieve them. If done systematically and over the
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long-term, Farmington can enhance its economic base while maintaining its core values.
For Farmington, there are a number of motivating factors for this Economic Development Strategy. They
include:
· Establishing the role and direction for the activities ofthe City's Economic Development
Authority.
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Desire to enhance its reputation as a proactive city that embraces partnerships with local
and regional economic and business development organizations.
Welcome new businesses and acknowledge the important contribution of existing
businesses to the city's long-term economic sustainability.
Ensure that municipal costs are competitive to other jurisdictions, especially within the
industry sectors that are important to the city's economic success.
Provide an environment of "certainty" for businesses by establishing clear, consistent
policies for development, regulation, and taxation. . "III!I!I'
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tream Ine regu atory an permit processes w I e a anclng communi y goa s.
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Provide responsive and flexible customer service at City Hall.dll
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Include economic impact considerations in municipal decisio~~lmaking.
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Acknowledge that communities must compete for investment~"~"uman resources and
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infrastructure. ,II,
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Present a positive image of Farmington through the Media, citizens, a
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In reality, the City is continuously making decisions that aff~'Ct economic. development. The, mos:t'l'obvious
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ways in which economic development is influenced by local"government are through decisions on land use
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and property taxation, but there are many other ways in which 'economic development can also be either
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positively or negatively affected. Examples include the working relationship between local government and
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the bUSiness community, the cost and time required to move througll',munlclpal review and approval
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processes and the effort made to understand andl!h:~spond to the needs of business. The single most
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Important thing a community can do to support and encourage development IS manage and reduce
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developer/ investor's risk, provide as much certainty as possible about the permitting process, and provide
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as much clarity as possible about economic develoMnent policies.'"' ~,
,'''llill 111'11'''1' 'III!'"
Ih ,I 11111. W jI"
Economic development is!a out more than attracting companies and investments to a community. These
:i,!!lll\!l!lllHL,! 'i '_I dtL I!II
opportunities are part df"st'~,ulating gr'9wth, but they shl,buldil,not be pursued at the expense of overlooking
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th~ ~eeds o~ the communltY:I~I~Il~IIII~xIS,~"!'IQ,8"'i~"~II:rI~II~,:sses. I~ f11~t, res~arch from nu.merous sources sows t at
eXisting bUSinesses f,reate 60%k~l~i~ ,~,~ all n~,~/e'~~I~I~I~"IC growth In a community.
:;;liiil!!!'!:
II' " ,,1,'"" ' ""
11l1liJl _ 11@ .Ii'ipi JI
This Econ " " ic Development Stra~egy pres nts a plan for Farmington's future, and outlines four priorities
:!F1l11j111W!iP:II! , - - - :!lli~, .!IIlW'
that the comrillmity will strive for,in its ec'Onomic development efforts. Each priority includes a set of
,'IIIUlllill!lillIlID:, 1"11;"1111. . , .
strategies that represent the key strategies to focus on to attain It. Recommended action steps are
provided for eacl~llli~!I~:~:!~gy. Acti9'~tii~teps are the specific items that Farmington will need to implement the
'k.'!Hh;;I,.!!!". 1;,lIilll
strategies, and ultim~helYILachieve the mission and vision of the EDA.
II' Iii, 1(1
For this Strategy to be succ~ssful, the progress of implementation must be monitored to keep the work
'110"
focused on the most pressing issues and completing the action steps in a timely manner. This can be done
by regularly collecting and analyzing data pertaining to the benchmarks and performance measures that
accompany each goal. The benchmarks and performance measures will allow the EDA to gauge the impact
of individual action steps and assess the overall progress of achieving the goals. Benchmarks and
performance measures will enable Farmington to track the progress of strategy elements and determine if
additional efforts are needed to reach the EDA's priorities.
3
What's in a Strategic Plan?
The following flow chart shows how the strategy is laid out to eventually meet the mission of the EDA. The
mission is the starting point of the strategy which provides a purpose for the EDA organization. It
articulates why you exist as an organization, describes what the organization does in clear terms, describes
the purpose ofthe organization, and answers the question "Why are you here?"
,1111:jllllh
The vision describes the roadmap of the strategy providing a direction for th~iplah'i!,.,The vision provides a
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clear and compelling view of the future and answers the question "Where i:\'i'e we headed?"
Priorities are overarching issues that the EDA wants to address. The pr I", ere set in early 2011 which
.111,,1111 ""lllillili/li/liIll'11I
include the Organizational Plan for the EDA. The Marketing, Busil'lessl~etentionian'd Expansion, and
,jljlJiI1idlJiJ..,jH! <ltt!liiH;j!;il!llii'!'
Business Recruitment are the most important issues that nee,9Iill!'ol6'e,,~ddressed in th:~II!i~~rategic Plan as
determined by the EDA. ,1[11111. .,/",'
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Strategies zero in on the priorities and determine how you will:'achievethose priorities. ActiOrl"steps guide
your daily, weekly, and monthly tasks for accomplishing the "~~I~~ltegie~lliil"~A'ril~'finally, benchriil~rks and
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performance measures holds the organization accountable to me'eNhe mission.
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Mission
Benchmarks and
Performance
Measures
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Vision Action Steps
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Priorities .... Strategies
4
Mission
A mission statement conveys the purpose of the economic development organization. It helps an
organization clearly communicate its purpose and direction. The mission statement was adopted in 2006.
.
The Farmington EDA's mission is to improve the economic vitality of
the City of Farmington and.to enhance the overall quality of life by
creating partnerships, fostering employment opportunities,
promoting workforce housing and by expanding the tax base
through development and redevelopment.
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Vision
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A vision allows the planning group to see the community in tne:luture'), "provides a foundation for all
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economic development activities, and should be creative but base'~1I8,nreality. Every organization needs a
vision of how it will operate. The vision statement determines "wh'~'r'ei'!do you want to go?" The vision
'1'Ui11iilll!lI'-iH: iil!':1
statement is your inspiration, the framework fql!rrii::~'il!ll:y,~!!pr strategic plariniri ,,'I""
"I"'I'~, ' !!iI' ii!
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The City Council, EDA, and key staff participated in'several Visioning sessions during the summer of 2007.
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The idea of what the EDA's dreams were for the City, the, ~xisting strengths that would result in the
achievement of those dreams/,a'nd"the weaknesses that ~ay stand"'in the way were all key discussion points
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that assisted with the creatio'n of a vision for the City of Farmington EDA. The vision is intended to guide
.1 ' "I 'Ii,
the work ofthe EDA. "II ' ''',!,
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5
Economic Development Strategic Plan
The following pages represent an outline of the priorities, strategies, action steps and performance
measurements of the Economic Development Strategic Plan. Directing the strategic plan are 4 priorities
that need to be addressed and the 15 strategies to accomplish each of the priorities set forth below.
Priority #1: ORGANIZATIONAL PLAN
Priority #2: MARKETING
Priority #3: BUSINESS RETENTION AND EXPANSION
Priority #4: BUSINESS RECRUITMENT
.III!I I'
dlij,iU,i11il'
It is essential that the strategies identified to meet the priorities outliri'ed above" ~"c1ear, concise and
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measurable. In order to provide focus to the priorities outline~IIIIIPil~19~' the folloWin~iil'~'~I~nomic
development strategies are established. It is staff's intent tocontinue"to provide thelEDAwith a monthly
l~I'jldll :,':~I
economic development activities report and to communidhe progress on the strategicpla'hto e EDA on a
quarterly basis.
Priority #1: ORGANIZATIONAL PLAN
i:;il
It is important that organizational components otfCl, strate'gy;:ilargl!i,dentified he Economic Development
. ,'i!i!f!l" "f'I,lllll!fllllllllii,I,iII!!II!!,,, .. .
Authority (EDA) has a number of Items that need tO',be aqqresseqat e,begmnmg of the strategic plan
'!i1i'II,,'llf!IIIII' "
before the plan can be implemented. Items to address include:
,II 11111..1
.
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.
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roles and respon~i~i"~ies of th~,~pA and staff,
website configu";'~t'i:O,~,. ;' I, IIIIIIIIIIIII!I
. ,,,'!iIH!!I!!,,, ,'illI',,1'
development review pr,dcess,a
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fundin&:,!p~;,~!,he EDA such""a? incentives t ne~il,businesses.
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iI'II'! IIII
.
.
1. 1
Organizing for Success: Far i,ngton's Economic Development Strategy
Iittl!I"I'IJlj I ',',il!'''' lIliliW"
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II Iii'"
Acti Qn!11,,', "1. 1: Develop a a h and philosophy for Economic Development in Farmington
"" ""!lliIIlllliI,,
Implementation Steps:
(a) Review the,l,existing ~i'~sion Statement.
!'i!!!JIljiiii:!I!i1ill-. "II!!iii!:ilii
(b) Review the existing Vision to build consensus for Economic Success.
'IHI!lli..lll"ij:,I'II.
(c) Review swoTIli'fR'~lysis for 2011 Strategic Plan.
Will
(d) Develop a pol'icy for a "business friendly" approach to economic development.
. Remove barriers to conducting business within the city.
. Improve the regulatory environment for businesses by ensuring that development review
process and other policies are streamlined, transparent, and consistent.
(e) Review City status/progress on economic development priorities on a quarterly basis.
(f) Update overall Strategic Plan every 3 years and continue to seek buy in from key local economic
development players.
6
1.2 Organizing for Success: Roles and Responsibilities
Action 1.2.1: Create a 7-member Economic Development Board of Commissioners (EDA).
Implementation Steps:
(a) Develop steps to implement a 7-member Economic Development Board of Commissioners
(EDA).
(b) Develop a transition plan from the City Council to the 7-member bo
(c) Compile list of past interested residents to serve on Board.
(d) Determine duties and responsibilities of EDA.
(e) Prepare organizational and procedures manual.
(a) Show all key staff members and clearly state~Heirlrole, ser\fic:es offered and pr
"1.'''':'''';1>',, " "'I"
responsibilities. ',.ii1iim!"
(b) Establish consensus on focus and roles regarding ,,!.'WicDev~lbpment.
(c) Identify desired roles of partners and how they could '~~r~:' '. as resources in the plan
implementation.
(d) Post on website and share internall
Action 1.2.2: Create Economic Development Departmen.
Implementation Steps:
(a) Use the Strategi Pan s '. ...ementation mcrl:[ix to provide annual reports to Council and staff on
ro ress madl~:::!6 . ke initi~~'l':!i es.!!)!!h
p g 'illli""'I"I::::i?nnll' Y '!I!lJlJ~I~ "i!!I:I:", ''''':,'':1
(b) Summarize annU~U~I,Qutco?l:~~achieved relat~19,I,#)the EDA's Economic Development Priorities.
(c) Actively promote t~~:"::e ~~I~~:('hli"', ners~nH the City as a whole.
Action 1.2.3: Monitor and Measure Progre
Implementation Steps:
1.3
al Visibility and Collaboration
(a) Make'wl",.",p~ations t",1' he community and residents to share the key initiatives and next steps
and ask fo'~{~:~P~O~ii',~~' appropriate.
(b) Develop pres!~I!il~I~I:~~'se and distribute to key media for a formal launch of the Economic
'!lli!IIIIII~"
Developmen~'II~trategic Plan - key initiatives.
(c) Post the plan on the Economic Development Department website and update regularly with key
accomplishments.
1.4 Organizing for Success: City Council, Boards and Commissions, Media
Action 1.4.1: Work to create a positive perception of Farmington.
Implementation Steps:
7
(a) Pro actively counter detrimental media coverage with a steady stream of positive counter
messaging, promotionl and public relations activities.
(b) Renew sense of pride in who we are, our aspirations, and way of life through marketing.
(c) Turn the tide from negative to positive communication in all aspects of business.
(d) Encourage community partners and citizens to actively dispel and counter negative public media
communications.
(e) Improve the regional perception of Farmington through the GROW Farmington Branding
initiative.
(f) City Council and Boards and Commissions welcome new busin
"business friendly" solutions to any development challenges
(g) Support projects and events of the Farmington Business AsSoclatl
Farmington initiative.
. Attend GROW. Farmington meetings
(h) Develop a clear and consistent message about ec
'ii'
(a) Create one direct "Economic Developrnen ...I:Q9.the City's h..... page.
· No information on th~ site should '!~:~[!!,~or~:::~:~I~'~"'~'~I~;i~i:!:~ili1~I~,~Sllil'~a~ from homepage.
· Poll key local e~Anom'c developmen1ji!ell.~,~ers to ma~~!II~!",te user friendly.
(b) "Economic Dev~!.?p'me me and welco,'~'e-pages shquld articulate the EDA/s mission
statement andlinclude a . .~ensed list of easily navigable links to the different service offerings
'<"li,,'llill"'!illllllllllllll'!',I'h
of the Ecor:J6mie!I,!R~~elopm~I~,t Department. T!I"!'~'1,~"i,~e should also include:
· Information S~I'"I', 'C'i'UI ining to the i,9~~tified target industries, including a list of local
busin~,~ses.
II"M"i'!i!!:::i::',::::Ji~iii!::i,:,i~
· Jiliil,arKet,
1 .5 Organizing for Success: Website
Action 1.5.1: Strengthen the Economic Development sect!
Implementation Steps:
onstrating the benefits of business location within
.
Farmingto
Commercial state la",nd:"building options with maps.
"!ii:l:i:!!!::i,lil
Updated demo ....... ,hic andliloor market data.
Easy-to-underst~Bd'I!'progra'l~s for development.
"!II:I:!!iili:l1i:::'!I;, i:i'.lI'!,:'il'
Re~,i,~w partner Ii~~~ to include DCR Chamber, Dakota County, and state economic
deJ~I~I'''''l'T1ent org~'~izations.
:!;i;'~lil,:I::I!!!:" ,"I:i:iiill
Include' ~;~'~~n~:~s'Emdorsements, quotes, and testimonials from businesses that have
successfuli~i:located/expanded in Farmington.
Ensure thclt URLs and web links for City of Farmington economic development sites are
featured prominently in all marketing materials.
Review economic development websites of similar sized communities.
.
.
.
1.6 Organizing for Success: Research
Action 1.6.1: Review various publications
Implementation Steps:
8
(a) Compile a list of the journals, newspapers, and articles to determine marketing opportunities.
(b) Create a database of active retail brokers and developers including names, addresses, contact
numbers, etc. - target south metro area.
(c) Conduct an analysis of surrounding jurisdictions business fees and taxes.
1.7 Organizing for Success: Development Assistance and Customer Service
1.8 Organize fo
(a) Include the business licensing component of developing a bus,
I!III'". '-,
Review Process.WI,
(b) Continue to evaluate the 30-Day Development Reve
and improvements.
(c) Consider formalizing a "development assist ", te" sponsd~ ,for each case. T ep'resentative
i"lllilillllllllllll"'II, I
would be the primary point of contact for an ap licant, CI would help the a licant resolve
" .. 1,:1: d!,l
issues throughout the process. '
(d) The City will create an updated If Doing Business i~e'~~:I' to assist businesses with obtaining
services, including, for example,'II~he~licenses and pe~II:II!!~!II"11 re needed, a timeline describing
the process for approval and asso~il!'~i>I"liI' 'es. '
I!j!!ilh
(e) Research electronic plan review imple"
I'I1I'1
(f) Continue to coordinate with the S~ate
regulations that impa businesses.
(g) Create an exit su
into the Development
Action 1.7.1: Continue to strengthen the Development Review Proc s
Implementation Steps:
facilitate compliance with
'vesfd'r Economic Development
wn th, gative fund balance.
"%~IIIIIIII':I!Ii''''
d techn!~al assistance to fund economic development initiatives.
fund fib finance attraction or existing business expansion projects,
e City's 'new' target industry areas.
Marketing is a tool of Economic Development that has two functions, to improve and to promote a
community as a viable location for economic activity. The City's image, specifically the logo, the City's web
site, content and appearance of City publications and printed materials, coverage in external media, and
our presence at local and regional events are all components of Marketing and Branding. Great economic
development initiatives involve the entire community working together to improve the local "product"
while the EDA works to improve the awareness and perception of the community in the outside world.
9
2.1 Promoting for Success: Marketing and Branding - Managing our Reputation
Action 2.1.1: Prepare a marketing plan.
Implementation Steps:
(a) Work with the GROW Farmington collaborative to create a unified economic development
message for Farmington.
- Initiate and manage a process for developing a new message.
- Determine objectives and standards to develop the marketing!:p '.
1111i!llli!ilIIJ .
- Identify and clearly define strengths, assets, goals, oppon;g~,il~:t~s including the competitive
advantages of our community, its amenities, and progr",es~il"a'~'" I'" arket it.
""'111'"
(b) Define, expand, and formalize communications with the ~~:~'minlilll!I":I"i~i~ness community.
- Hold quarterly meetings with the business comrrw:~iW tqlearn aI:)H'~~I',~nY issues or trends.
(c) Research what other Cities use and determine hOX'r'IJ'Mlpl~~ant printed mll~tlllll:!~I', Is are to the
marketing efforts. ",
(d) Coordinate with Communications staff to st~~t .",~~lIy plani'rn,~ssage delivery i . "g'
newsletter, newspapers, website, social media, !'cij'~bneI16A,~t!Gli"
, 'i i ,I: ,I : i i I ! I ill ; ! ii' , .jI if I:, I: ~ Ie ' I I! I[!
(e) Continue to attend or plan new efforts through GRO ' fffiington to promote the City to
developers, brokers, retailers, entrepreneurs, etc.
(f) Develop programs to enhance aml!'~i light the City's eco development efforts via sign age
throughout the City.
- Explore the use of City street sign,
Tree City USA, etc.
- Research the feasibility of an electronic si do " and on 19Sth Street to promote
and market Farffiili~lil:lllii"lillii'" and its econ~riWddevelopme'~i,ilefforts.
r--:!::Ji.I"li'~illl, "
- Encourag If)lade signs, pendicular to"the street to capture shoppers.
- Design, a , " all wayfi!~,~'ing signage fo~'~ r~ness of citywide attractions that will increase
visitor stays l"I"ir.!J1in" ,,'
(g) pro~!Qt~~,~,rmingtoh:~'~'~li"le s ' 0 deal" program.
-, 'i':!llii:'Eddt'~t~I'th~,DUblic"~'~~'!Jt the econ impact of shopping in town vs. out of town. Run the
,':~' , I' \!III:iIIIIIUII:IIII~J:II' d!i~:~li;:iiJl]II',
sample ad, 'o,lit~,~ Farmlt1~~r Independent: "Ten Reasons to Shop LocaL" Market benefits of
"sho local"'~!'~!reness i8''f'ill!'s'''/ehts.
P'I'!II!!"'''''~illll~I~'
The program sH'o~I'd educat'~: local residents and businesses on the importance of buying
1I,llllllii"II:II.IIIIII"
om other localilusmesses.
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- Ec()urage increa~ed business-to-business purchasing.
o Ut'i'ln~'~:lthe City's ~;~I~iness directory to market local businesses to the community both inside
''1!il!llill!ii!!!:!::'r, ,i!I!;ill;:"
and oUtside,ofi Farmington.
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- Discuss cre'ative ways to improve awareness of local business offerings such as meet
merchant~:i!~~mpaign, business spot light at Council meetings, anniversary of businesses at
Council meetings, Farmington website, videos.
- Coordinate the City's overall marketing effort via newsletter; newspapers; website; social
media; Channel 16; etc. highlight the "shop local" program.
(h) Staff and EDA attends gatherings and conferences pertaining to Economic Development.
- Attend gatherings of DEED, EDAM, Dakota County Regional Chamber, etc.
10
(i) Artists' studios and living spaces within the downtown area could be one of the few suitable
uses for spaces no longer appropriate for most modern retail.
. Encourage the arts in community plans. City leadership should support the existing DVAC.
. Periodically convene the current artist organization to identify better ways the City can
support their objectives.
. Encourage more public displays for local art work (City Hall, empty storefronts, Riste Lot,
etc.).
. Local designers/artists could be engaged by the City to create art
banners, and publications.
m Research "shovel ready" initiatives to determine ifthe futur~,..i
';';
requirements.;!.!!\!,
. Discuss the City's role in "shovel ready" sites. ,1,.1:, .. ii!
. Review other "shovel ready" communities in ~b,~il:M~tro.
. Facilitate an open discussion with land oWl"lehtof the future industrial
their future plans and timeline., .
(k) Work with regional economic development'to ass uSiness!"prQspects coming ~',.
'::, -:i),1
and the region.
. Respond to prospect requests in a timely manner.
1!:I::iil!!I""I
Priori #3: BUSINESS RETENTION AND E ,
,;,'i
Existing businesses are signifi ,tributors to tn'I,::,!,g,: I econo ,IIII'II! ~ tax base and a healthy and vibrant
local economy depends ~~III}''''IIIIIIIIi!li!I~I~ng. As menti~'~ed earlier research from numerous sources shows
that existing businesse. s'lc~I'le, at, e 60%-90~~'lof all new ecdQomic growth in a community. Business retention
,":i!lllijlllill~I~II~IIIIIIII, .,rmm[liI .'1,1111111. .
and expansion efforts1to sugeort eXisting bUSinesses shouldll be an Integral part of the economic
development strategy. The"I~:~!I~;~liW i~ii~~I'!I~~~~~I,~sh and/o~I~lm'~intain a solid working relationship and
f t . t', 'th 1111111111111,1" 111I11 ,',I,IIIIII,lllliillllllllll.II,III~,III~IiIl";"t "",,,I,' . 'd db' 'th' F . gt
requen commUOlca Ion WI a ere n S'"llservlce provl ers an usmesses WI In armln on.
..~lil:liliil~illlllllliIMiliHilllllllllliIUl~ I...' , '"" III;; I~II~IIIIIIIIII~IIIIIIII' . . .
~eeplng a~1 Ij~IStlngIBl!.~I!I~liilli~~1111~1~ oft . rand less"costly tha,n recrUiting a new ~u~lness. I,t's als? .
Importan1llll~o create an en'V\~ilnment 'il courage the expansion of commerce within the City which In-turn
will encl~.llrjll,~I:'~'I'lage,other eXistiri~jll~~lls",nesse~III~!II,!I',I,I~)(,",~nd. It's imperative that we build upon a coordinated effort
II!ril'T,;;;nII~!!IIIII' D"!'illllilll'll1.1 ,'11111111111111'1-'
between't I '~:il'E,conomic DeveldR """llent Authority and the key Economic Development players to assistant
,'!ijlll~I'IIIII" ,"11111111,111111. '1111"
with the rete 0 and expanslonllo,' f bUSinesses to:
111'1'1111[11111
1I111111
· kee m from ~ill' locating to other areas,
. assist "exg~~Sions that add J'obs
. "!!:'I~lllllllllllllllmllllll' . . '
. Increase tnelr competitiveness, and
11'111111'
. help themli\"vithstand economic difficulties.
3.1 Maintaining for Success: Business Retention and Expansion (BR&E)
Action 3.1.1: Create a more formal Business Retention and Expansion Program
Implementation Steps:
11
(a) Determine the most effective structure for a formalized business retention program in
Farmington.
· Review existing Business Outreach Program objectives.
· Research model retention programs to find and develop the best materials and tools (.i.e., U
of M Extension BR&E).
(b) Outline and formalize the BR&E program.
· Components to include: process for setting up retention visits, completing the visits,
follOWing up with identified issues or concerns, assigning foil w-up items to City staff as
appropriate, and reporting on the results of each visit.
,II. ,. ,It,
· To develop retention team, solicit volunteers from Ci~llliis~,~ncil, Dakota County Regional
Chamber, the business community or other groups wh ili,iWq" attend visits along with the
EDA members and staff I
'Iilil;',
· Establish a goal for the number of retention visit~!!the City would i ,0 conduct per year
· Set benchmarks for visits per month afJ~,,~agtinu~HY monitor' umber of visits
completed relative to the goal. ' ,.
· Prepare schedule of visits.
,!i:':.';:",!i:1
(c) Develop questionnaire(s) to be used in retention'v,lsits.
· Prepare questionnaire to discuss in BRE visits.
· Expand the Business Retention,and Expansion progra add more emphasis on questions
identifying suppliers and other lir~J~~~~ firms that coul'''::Ii~~.cruitment candidates.
:,dill".i'i,"I""I'" ",I'I'n:!,II.:.'".
· Consider taking staff to communi~,I,~s:,*,ii~,~!,m~re established,! tive Call/BRE programs.
(d) Organize and hold training for all rete~fiioniv()tM,h~~,~rs.
. Provide an overview of the format:~ the r~t~~'4Iiii'" isits, int uding scheduling procedures,
attendance, andJq,IJew-up."
I. II , I! i ! ! i ' : : I , I' i, , ',,' ',~ I ~ '! II I;' 1,1. , " ~ I : Ii, : ' ,
· Review que~~i,9linaitt~~I,d explain whY,~,~ch question IS asked.
. Anticipat!;!,~#me tYPiC:al'~?ncerns and fotrylUlate responses.
(e) Create list of bQ'~'i'~,~~ses to ~~~get for retentio~i,xii!~,!~s.
· Utilize a vari~~':~:~I:I!~f~i(W~i~i'~'D,~~formul~~~thiS list such as sales tax generation, number of
j?l:J~,t~rgeted geOgrClphicafea.s;',rpm()~sof closing or relocating, critical industries, etc.
..' ,c~iffih1411~~1 ~,~ regu'II~II;'I'!I' ith ec'~~'d~'\~:~evelopment partners to identify at-risk businesses
to visit.
· Develop Raplil"':"I~ponse "'/Ii'i,),of Economic Development Partners including City staffl FBA,
:i:i:il:ii,':".~nd DRC to imrll!,~",~tely re~pond to the needs of existing companies who may be expanding
':i!,q~I,..r:locating to a'O:9~her community.
. "i!]jl'i'0)>' Consider t~~li use of a "watch list" for businesses at risk of closing or leaving.
(f) Develop IIst9f resourc::~~ and referrals to use during retention visits.
"';:i:>:I.?>,:,,:,,'!'::I,!!I'
o This Iist'f~:~I,~".!nClude City Council, Planning Commissionl Dakota County Regional Chamber,
internal d~!!:~t'~ff in Economic Development, Finance, Public Works, Parks and Recreation,
and Plannh~g or retention team contact information.
(g) Host a business appreciation event once per year and invite all businesses in the City to attend.
. Discuss appropriate timing and type of event.
· Determine budget for an event of this nature. Identify funding sources, sponsorship
opportunities, and programming for a business appreciation event.
. Celebrate incremental successes and milestones.
(h) Consider developing additional resources or programs that the City could offer to its existing
businesses based on the resulting "issues" or "needs" learned during the retention visits.
12
. Possible programs to consider could include providing loans or grants for physical
improvements such as facades, signage, parking lots, interior remodels.
(i) Augment the business licensing process to promote economic development programs and obtain
information about Farmington businesses.
. Refine business license application form to include more questions about related to
economic development.
. As part of the licensing and renewal process, provide all businesses with information about
the City's Economic Development programs. , ,I'I!II'
m Create an informal business retention program that businesses ca II "~~~I~,,[IY meet with elected
officials.
. Canvas business community to gauge interest/availabilit'
of event.
. Target business community to attend "Coffee wit~:i~he
; I:: ,~II ,Ii' "!!: 1.1:[ [',I,
talk about the business environment in FarmilJgton.!i"ii
'i:lli!:"
4.1
.
Priority #4: BUSINESS RECRUITMENT
Farmington will continue to grow and reinventl,."
area. This priority addresses efforts that the Cit'l~i11
'11"1111,
and other types of services that demonstrate strong eco
the City's efforts should be to'
iil!1<
through the,',~~,~~ion of new businesses to the
~r!(Iging addi~Janal primary industries, jobs,
qrnj'~i"a~~':" 9: Farmington. The principal focus of
.
ployment opp I!llij,~nities.
ices for l(:j'tal residents.
,"':lli[II"
o I , IBle.
, i III ' II : I,:! ~ : r I IIII
of the city'i'n general, and its business environment in particular.
.
n the part of numerous organizations, all working toward
Business Recruiting
Action 4.1.1: Bu
Implementation
(a) Establish standardized programs that staff can confidently discuss with potential businesses.
. Determine if City can/should provide incentives to new businesses.
. Develop hardcopy materials that explain available programs and the City's policy on
incentives.
. Become fluent in understanding how incentives may be leveraged and coupled with the
greatest benefit.
13
(b) Develop new relationships and foster existing relationships with brokers who work in
Farmington and the metro region.
· Make contact with brokers involved with specific properties in the City.
· Inform the brokers about the existing incentive programs and the City's perspective on
offering incentives.
· Research different events to attend or host to highlight both commercial and residential
properties (i.e., "brokers forum" for real estate professionals).
(c) Continue to maintain and update the real estate database of availabl~, properties.
· Investigate other marketing opportunities to promote availablel!i!~:~~'p~rties in the City.
(d) Identify new networking opportunities that will allow the Cityi!i!!!!!!!!!"'" age ;ith new businessesJ
developers, entrepreneurs, and real estate brokers.
. Attend EDAM and Dakota County Regional Chamber
(e) Determine targeted retail prospect identification. .'
· Identify and target retailers (both national andIp'tal)"whose busines .
dependent on foot-traffic. ..
· Canvass local business districts for non-natlbhal retailers.
;i:':"'-":::;:'il::I;ili;::i:li' ,',
· Prepare targeted marketing packets for eacnrn:
4.2 Recruiting for Success: Busine~~ Recruiting - The
Action 4.2.1: Downtown Business Attr~'
Implementation Steps:
(a) Work with existing businesses to assist tg E.. m recr . .... gcomplimentary retail (target
,:!'iiil!!IIII':!!ljilll:!W::li!i;I:!"i' "::"I"'!I:':)I..::I- !'::':i!I:,.
businesses) to qu!ld"ao'&~tgwn as a strong!:~estination fdrshopping.
(b) Evaluate which:il~~ailable'i!I~~:Qil~erties are SUit!~~le for varied food and beverage establishments
which attra~t~:"~rp~der po!'~i'ation downtoVJ~,.,....,,!n
(c) Evaluate the ben~ft'of rec!!~'itin cultural eXP;:H~~ces including studios and galleries to provide
acti~itiesdo~ntow' . .... .1'
(d) S9D~irit~t~i':~~!~I~~r wlt"I~!li~i~:~,.1 organlz Ions that ?roVide regul~r and highly visible events and
'i!i'llil!festlvals to att(~iq'~:ttentl(jqi!~Pldowntown and brmg crowds to It.
,,!,I(li\' ecru it the eXP~!~~I~'9::,ofthei'~~~~~~sjona' sector, which will add downtown businesses and will
r~ct people to dO~,Qitown to!~nop, dine, and experience the arts.
e~rH!,~businesses tdr::~~,rve ot~er downtown businesses.
eeuild,a stronger dqWntown business community, retaining the cash flow and the profitability
'i:",I,:IIP,'ldi" I,I.,!'II:!'
of d~\Ngtown bu~j'n'esses.
· As m6Ip~I::;bod~aH:d services needed by downtown businesses are available, the community
III' .,.,1:'::;:'::,':,. ("'!:,I'
will be les~)ndined to travel to neighboring communities.
(g) Recruit "desti!~I~tion businesses".
· Destination businesses are businesses that are uniquely present in the downtown area and
they tend to be focused on "interesting" or "personalized" shopping.
4.3 Recruiting for Success: Office Development
Action 4.3.1: Recruit Office Development
Implementation Steps:
14
(a) Recruit office (target businesses) to locate them in Spruce Street Commercial and
Business/Commercial Flex zones.
(b) Explore feasibility of providing assistance with infrastructure in the Spruce Street Commercial
and Business/Commercial Flex zones.
(c) Define to potential office tenants the key competitive advantages of locating within the Spruce
Street Commercial and Business/Commercial Flex zones.
(d) Initiate office prospecting through contact with brokers.
(a) Facilitate an open discussion with land owners .0 ,I
understand their future plans and timeline. "
v:",
(b) Fully inventory vacant and underdevelopedindusfr"al propert~lto earmark those,1 Ith the
:u: """ }:;"I,I" '111111'1 .Iiiltll'
greatest development potential based upon locatio infrastructure, access and related factors.
1:',,1,1"111
. Identify needed infrastructure upgrades/extension~iifal1, getting sites 'shovel-ready'.
(c) Recruit industry (target business~I~)I!i order to locate th~!I!:I!!:!li!!lll"~he proposed industrial park in the
futu re.
4.4 Recruiting for Success: Industrial Property Availability
Action 4.4.1: Clearly Identify and Maintain Industrial Job Cre~ti!5'n Site
'I':I'!I
Implementation Steps: 'l'llilll"
!I,
Action 4.5.1: Antici
Implementation
4.5 Recruiting for Success:
)::!1'
:;:;ii::i:,I,il:'iliii!:iiii;
e guide whicH!I"j,"cludes pertinent contact information for various
511to frequently asked questions; and information
~'~III'" ration p ms.
(b Develop a st "" ': I,marke Ian to promote Farmington's available commercial properties
d 't I" t" 11t!illIII,!",III'IICt d .iI . .
n revl a Iza Ion l~,nlmr,re ev nt opportunIties.
. ,1'I ~I .icipate in long_~l~lkge. and su rea planning efforts to ensure the long-term vitality ofthe
, 'i 1:11~IUllIiiI'ijl' .. 'il!Willlillllll" .
CI~~.II::SIII'rxlstmg commirl;I~,al pro ertles.
(d) C '11,111111111, 'II" I' f II" 11,,111" '1 bl .c . I did' fill' F .
o ~ a 1st 0 prop~"les aval a e lor commercia eve opment an m- I m armmgton.
(e) Condu' nalysis ~:~I!:~brroUnding jurisdictions fees and taxes.
(f) Explore st "c an "~~ations at the City's edge to enhance potential commercial development
opportunitie
(g) Evaluate builql g code regulations to better understand how they may inhibit reinvestment in
existing facilities.
15
A Measured Approach to Chasing Development
As Farmington considers strategies for economic development, it is important to understand the reality of
chasing huge boxes of retail or production space. Economic development programs continually focused on
attracting industry as the most effective strategy for job creation have often failed. For many communities,
and in particular rural areas, this strategy often Itlines the pocketslt of the real e,~,~ate development
community while creating less than living wage jobs in big box stores that un e"H,!.Q!I~ local retail and
service enterprises."
In contrast, those communities able to retain retail and service sect . cal . s hesses may see profits
''''',II'IIIIIII;'ill;"
invested locally and contributed to local causes. The result, acc~.~,~,~,n'"f Rupasin~i~'~!I,~nd Goetz (2003) is
that Itself-employment is associated with lower poverty rates, 'nilethe!"presence 0' i
1"11
associated with higher poverty rates.1t ..
Community leaders often assume that incentives offeredf,,'I"iI,~/,ocatiom be returned, 'I" times over
in new tax revenue and support for schools and local infrastria:~'O(e~J.. '~ality, however, iJ1Jlrituch different.
Relocations often create new costs in the future when infrastr~'~I~lIf~;!~ges, the workforce needs change, or
1'.I!llil!I!!!lii::iil:h
the incentives run out and the operation moVesagain (Humphrey,1~8' Flora & Flora 2004).
"
An aggressive strategy to IIchase" development. . .uires significant s . 'ng;'!~nd operating funds to
:,:;,\, I, '~::;:!:;ii!li!!II:':i'lii!il!'"" , "I;ill:II:]111111
support the necessary travel and public relations~?sts. S'm'~II::(;9,rJ1mUnitieS,$~ch as Farmington generally do
~ot have the reso.u.rces to do this. The reality how~~~r, i~II~,~I~I~I!iti'~a::~:~I~!I~lj~ll"reicruit~ent, while generating jobs
In some cOmmUnIties, accountsl.forrol1ly a small portion of overall n'eW'Job creation. Indeed, research
1':i!::!,li:I:::ill!:I:III!;III;:;I::!!::!,,:!,:111! '.'I:!,::',!::': .,i,:,}"
indicates that this strate "as IimitE;!d;I'effectiveness fq~most cities (Kauffman, 2002).
"Grow Your Own" as .
The most effeC!:'!~~li~I?~~~~ch mai'"l "III' 0 a""i;'~(~,~!f~rprise development" strategy, which Simply means
supportin~Jb~;:la~\J'~'I~I~:W,~nt,: of sm'~t!i':~~!I~edium5i't'~a business in the community through a variety of
proacti~.~,irr1easures. Acd)r'~<"~A;~o ThJ'~:~,~~. Ly~ns (2002), ItEnterprise development is increasingly
recoglJi~~~:'~s a relatively low:'f9~t, 'bottl~,~,:,up' strategy for economic development that is particularly well-
suite'd fo~;I~:~ariety of rural andl,,';III;li'!' an corni~'~nitieslt (p.1). The following is put forth as a rationale for
"".',,,,:!,,',:,"" dll,I'
focusing on ~,.!tgrqwing your ow trategy for economic development:
;:ii:::!!i!'!;i::ii,:::!!
1. The majority of b~#'nE!sses a~;..!, 'mall or medium sized, and they employ the majority of people in the
United States. .,
2. Entrepreneurial growth'~ompanies account for Itat least two-thirds of net new jobs in the American
economylt (Kauffman, 2002, p. 3).
3. Small businesses incubate innovation leading to new businesses opportunity. They are responsible for
more than 50 percent of all innovations, 67 percent of inventions, and 95 percent of all radical innovations
(Kauffman, 2002, p. 5).
16
4. We are living in a IInew IEntrepreneurial Agel in which entrepreneurs and their companies are
transforming the economic landscape:' (Kauffman, 2002, p. 4).
5. Entrepreneurs, those focused on innovation and fast growth, comprise 5 to 15 percent of all U.S.
businesses (Kauffman, 2002), and there are some in every location.
6. Entrepreneurs and the companies they lead playa critical role in fostering economic prosperity and are
vital to our ability to compete internationally.
Ifthe first element in a proactive approach to entrepreneursi~ii.!~.~~J!I~ rgaoized and effectIve business
support services, then the second essential element is commurH6t:'I~'~dership. Case studies collected at the
Heartland Center indicate that service provi s alone cannot maR~!I'~',~;!::"ccessful"grow your own"
" . ,~I: I L!~ i:: ':!
approach. In the Heartland Center study (200 ders play key roles; 'I usinesses success by:
7. Fast growth companies occupy a variety of business sectors, but they 0
the garage with less than $50,000 (Kauffman, 2002, p. 7).
(t. .":
8. Both our defense capability and homeland security require a rqbust',small bus
, ';111
'I"
'::II",'!I::,
9. Once established, a strong entrepreneurial environment ir;l,distressed or remote c
success in regional relocations of related businesses.
o Creating a compelling vision;
o Communicating the vision to others; '.I.!:'!
~ ~:;:~:~;:t~n:~: t"J;";J~ill~U:;=~~~:~~~Yq~:, p. 5).
"'!'I
, ! i ! i ! I ! ! ~ I
, II i I ~ i !
ng their own incn~~,~e that linearly all of the citizens become
e enterpris~stthey understand the importance of operation
",Jii'~;~Trpa'nity. Where communities focus on creating their
re entr;~'I!j,eurship In all three arenas: civic, social, and
astructure, or system as Lyons described, that addresses the need
,Wall & Luther, 2003, page 5).
17
APPENDIX
18
APPENDIX 1
Economic Development Strategy
City of Farmington, Minnesota
February 2007
Introduction
In the summer of 2006, the Farmington City Council and Econo~:!,H,,pe~~,lopmen'!"I"I:ly!,:["ission hired the
International City-County Management Association (ICMA) tQ~eVelop an economic" ,''''velopment strategy
and to identify best practices in economic development.
The project was undertaken using a "peer assistance"appr"!,,~.II~ith\,~~~,,prOViding over~], roject
management, but enlisting the voluntary services of a "peer" 'gr9u'f"'experienced current and former city
managers with extensive backgrounds in economic development.
I. Peer Assistance
1III"jillll'II'-Io'I,"
Fundan'/,':;ilil"t'" ,"""""
1'!~lliliill~'iT:l~d]I!I;I"
wh'riad a dep
"" ,II,Waldron, City M ",' , er in Oa" Ie, MN. In addition to his experience in Oakdale, Dr. Waldron
ha~'!"b:~~I)J, a Community "I':'II,illll'lllelopm~~t Director and worked for the Department of Economic
1,111111111111111111, h . kif' . k I
Deve oPW,~!,ij~ at t e Stat Minnesota; Mar Nage, ormer City Manager In Ano a, MN. Mr. Nage ,
in additio'~I:'t!q!llhi,S experie " e as a City Manager, has also served as an Executive Director of a County
, Ilil:,,::i111~11111 111111[1:1'
Housing and ~~~I~x!el~,~,pi'ent Authority; Richard Fursman, former City Manager in a number of
communities, m'o~ti]"rg~entIY Maplewood, MN. In addition to his City Manager experiences, Mr.
lij'iililll!!illlljj'l
Fursman also ser\{j~a as an Economic Development Director.
lid'
of ~he City Council, Economic
The project was initiated in October, 2006 and ~1~'~'!ln~~I~? in a joint me
Development Authority and key staff on JanuarY!'" '2~Q"'"
Project Methodology
Responding to the scoP~i1'~!II"
methodology for the ~rar'"
II. Assessment of current conditions
To establish a baseline and determine the current state of economic development in the City of
Farmington, the project team conducted an extensive series of interviews. The interviews included
all current City Council, EDA members, key City staff, major business and property owners, and
developers in and around the city.
19
In addtion, the team made an assessment of the current environment based upon their own
knowledge of the area and through discussions with industry professionals.
III. Review of competitive environment/common practices
Understanding the competitive environment was a key component of developing a new economic
development strategy. To do this, the project team organized a bus tour of communities that had
similar characteristics to Farmington, but had been successful in their ec nomic development
efforts.
On Saturday, November 18, 2006, the City Council, EDA staff alJ,~: ,PJ~~t team toured the cities of
"IIII::!II:,I' '1':i::il!II,llhilil,1
Rosemount, Oakdale, Roseville, New Brighton, Anoka and EI~i~,iver. Irt:'~~~I~ city, an overview of
issues and project "lessons learned" was presented, inclu in,ll'ql,'" uestions,i1i,illdl!II answers for the
IIII
officials from Farmington.'!i
IV. Identification of Internal Capacity
Once City officials began to understand the competitiv '. nvir e~t and the com on practices
" ! i.'; , : : : ! r ~ II ,Ii::! ; . i : ; I ! ! i I : IIII '
used by other communities, the proj:ct team led. City offici,~Ji~!II~n an examination ofthe City's
capacity to respond to the challenges'o economic developmE!' II
On November 27,2006, the City Counci an EDAlmet in joint ses d participated in a
facilitated process focused on identifying'I~:i;!rmi~~I!!!!!I!i!II;',!, II,rnal str~ hs and weaknesses, and the
external opportunities and threats (SWOT ~'halysis~'Ct!or)i:with acheiving economic
development success. I I I I mary of that se~i~io~'i'ls attache~::i~!~i!APpendix_
V. Review of Best PractiCe
(, I "::;:'<>{ii;" , ~
The City of Farmingt()h:',reques~~~that the projec:i,,~~am provide information on best practice in
economic developmenti,~~,:~~"..9r\'f~~,!,~,~':!~,9y,~~:O~}.hformation and guidance. A review and summary
of be~~er~if'tiC:~,lijH.~conomi~,,~~velopffi~nt:~~~:~repared, identifying a list of most common
ele'l1e'nts andapij!~ii~~hes us~,g,!J;~X successful communities, as well as common mistakes made by
economic develophl~ tl authoriti, '"
'I""" "
In~ddlton, the team proVided a separate, but related examination of downtown development
Ii / l!ii!;:: i1~: '! '.' , '.,:':1 ~ ~:!:: I i I, '
practi'ce]GJyen Farmingtonrs unique circumstance as a outer tier community in the metropolitan
:~!, /:: i,;':d> !!;~I:;:: ,,!
area Withl~'~i~~inct dow~,~9wn, it was determined that a focus on downtown redevelopment
practices wclsT.erited. I~e best practice documentation is attached to this report in Appendix_.
I:il' 'i::%l!l!ii:"
VI. Facilitated Strategitplcmning Process
The project team'strongly recommended that the City of Farmington generate its own strategic
direction and work plan, not merely choose a set of actions based upon the research and interviews
conducted by the project team.
To that end, a facilitated joint meeting of the City Council, EDA and key staff was held on January 22,
2007. Building on the information generated by the SWOT analysis, interviews and research process,
the group identified the six most important strategic issues confronting the City. Once those issues
20
were identified, a series of action steps to address them were developed, and both responsibities
for follow-through and initial timetables were set forth.
General Findings
The project team found that Farmington has a solid foundation from which to build a successful economic
development program. The existence of a core downtown area, expanding residential base, good schools
and low crime are all assets that will serve the City well and can be leveraged to attract economic
development.
Best Practice Recommendations
The primary concerns expressed regarding the future of economic dev~t'lll ,:~'l~ were: lack of focus and
. bl' ff"' I I k f d' d "II d t ,':'jlll' I 11I111I1I111111I1 '" 't' f .
consistency amongst pu IC 0 ICla s, ac 0 goo In ustna an , ec mca ca Illes 0 economic
development staff and the absence of an economic developmen I
Nearly all parties connected to this process agreed, howeve
I
and commit to a focused strategy was worthwhile.
A detailed review of best practice for both gen~:i~,~1 economic develd'1i 11~~t as well as downtown
revitalization is contained in Appendix _' All 0 ). III" 'nformation contai~I~lq'I'I~ithi!r that document should be
carefully considered as implementation of the evelopment S1:'~IIIIIIIIIII"'''IIIi1moves forward.
Our most specific recommendation is to make surei!p li~I~:III~~~,Q,lfO the circumstances in
Farmington. One of the gre~~I~I~,i::~i!'~~i~i~es in econorrl'\~II"d~velopme~,~i::i~IIlto embark on a program simply
because it was successful "',llllanothe~I,',cWII' munity. TheMI,is no substit'ute for understanding the local
"I~lj'lll ~'I
economy, and the uni ngths all I , eaknesses ot,I~Qe community.
onsideration of these best practices:
.
.11"
.
.
.
consistent, clear processing of development applications and decision-making
. A supportive regulatory environment- creating policies and approaches that support private investment
. Understanding the regulatory environment- particularly how it affects businesses operating within the city,
while also contributing to the physical and social environment.
. Clear approach to coordinating land use and economic development- understanding how these relate, and
clearly articulating this philosophy to the citizens and development community.
. For downtown development, adopt the "Main Street Approach" and its four principles:
21
1 organization of downtown interests,
2 design and historic preservation to enhance the built environment,
3 economic restructuring to diversify the downtown economy,
4 marketing and promotion of the downtown
Additional Observations
In order to effectively implement the actions identified in the Economic Development Strategy, the city will
have to address two key issues addressed in this report (1) staffing, or staff ca ~I',' ; and (2) cooperation
and alignment of policy makers.
With respect to the issue of staffing, the project team recommends , I" "I h, e, City's capacity to analyze
""ii IIIII~III'
and conduct economic development negotiations and finalize "d;a his sh 'i e done as soon as
practical. This can be accomplished by either contracting for t . '~~':':IIII ce, or hirin
development professional.'
'I",
As City officials learned during this process, even the f11bS'iil'i"il~isticat~!~III~!ities use econo elopment
consultants. For that reason, the project team suggests initiat!;~,~li~iP~i,i#~21~s~ to engage th ervices of
qualified consultants for that purpose. In addition, serious consi' "'ation should be given to hiring a full-
time economic development professional.
Although no recommendation is being made al'III'!'I' 'l"~li'~I~i~,,,internal resPilll"'III~'I!'I'Jtles, based uponthe City's
current needs, a professional with broad OVerSig~~'i,of alll,'ij'~li'~i!!'i,~,~ent acti~i,l'es, with the strongest
experience in economic development would seerrh 0 be t l;i~I~'e,i" pf action.
In terms of cooperation an I "t,of policy makes, this issue a peared to the project team to be the
single issue most likely to, "ffect su~~~~~"lbr failure of tH'~II,City's effort. As a result, the team recommends
that the City Council, E~~1~12igJ'il~ey sta~,'~bend addition~i'!'~,ji~il~focused on team building, developing a plan
for commun.icating and C??r'd"~'~~li:!~~,~,~iiij~illi~~II~,~,,~nd re~#o'ns~bilities, and ~ow con~lict will be handled.
Extra effort In ~bes~sp~clflc are~~, ",Iii ~eipl,tQi$:l;i~~i~~ipen the Implementation ofthls plan.
11!',II,;'I!!III[l:III,I'
Economic
I. Create anEco orTIi~fDevelopment Framework
l'I!!:!II!I'j::'i"i::':
What are we ~pJng to do and how are we going to manage this project
',,'
Action Steps:
1. Make a decision for managing this process by
March/April '07
a. Administrator makes a recommendation to EDA; EDA recommends to City Council by end
of February/ next City Council Meeting.
22
b. Have project management in place by April 2nd, 2007
II. Understand Farmington's Market
Determining our niche
Action Steps:
1. Evaluate relevance of McComb Study for supporting an ED Plan .
2. Make recommendation for evaluating industrial and downto~,~,:'~:~g~~nts
a. City Planner to do by February 26, 2007 (next EDA m~leting)'
IV.
Action Steps:
,,;:lnll:"'lill,mlllill!~eting/c, munication process for
,9 Ec~fi'Q~,I, 'velopment Plans.
3. Identify "downtown" Farmington
a. Develop a process to define a downtown district
1. City Planner to do by April 151 2
2. Develop marketing plan for market segments:
study results .,
III. Coordinate Comprehensive Plan with Economic Deve~
1.
b.
1"1,'1
technical capac,~to support economic development activities
. I mak ,', source/capacity recommendation to the EDA by March '07 with
o go t~:il~~:I'~~IIApril '07. Recommendation to include the follOWing factors:
V.
ups behind the Economic Development Strategy
Action Steps:
1. Decide on Economic Growth Committee role
a. EDA recommends to City Council in April '07
2. Establish a schedule for CC/EDA/PC to meet and discuss issues and direction by February 8,
2007
a. Include "old" warriors as revered guests
23
3. City Planner will prepare a communication plan/process for community
information/updates
a. Coordinate w/ comp plan update process
b. Public relations and success dissemination
VI. Ensure necessary financial resources to support economic development activities
Action Steps:
1. Prepare a summary of funding sources for supporting op
February 2007
2. Summarize/create budget to implement planning:!!~!~:~",~V(Uuation a
3. Recommend a process to analyze funding!~6
",,:,!I"';
4. Analyze all sources of funds for underwriting de
The Appendix represents actions that have b~!~n'lfompleted or in tIiB:~,Rfess of being completed. This
information continues to be important to the~'II,lItt,,;iil:' chievements oft',II,II'!!!1 DA but may be outdated.
'.,
gll Development Chapter of the
I'
Met Goal
I Ongoing
Progress
Made
No
Progress
Downtown D~y@'gpm~nt andR
Establish a. CI'~~~''''Di~WI1~lllllil llil",. Boun" X
':','tIJ'" "'~ I
D'OT Analysis 0
"in the communit
~ nd Implement'
~ Joint "tipgs
c PUblic'!I:i!'~I~~
D Create maptai, ary of Downtown Commercia!
District
Design Standards X
EI Identify primary group to lead creation of design standards
EI Joint Meetings
EI Develop preliminary design standards
lJ Review with public and receive input
Cl Develop final draft and adopt supporting ordinance
Promote Infill Development
D Downtown Outreach Program
D Promotion of infill includes: business activities
X
24
complimentary to downtown, identifying types of
businesses to be targeted and outreach to developers
[J Parks and Public Spaces: identify opportunities for park and
green spaces
[J Identify Incentives: investigate possible incentive
programs/options to develop, research available grant and
loan funding
[J Land Assembly Strategy: ongoing attention will be paid to
the possibility of land assembly
Industrial Development
Business Retention Program
[J Visits (identify questions and discussion topics for visits,
data review, follow-up)
Promotion of Available Industrial Property and Buildings
[J Inventory
[J Identify desired businesses
[J Determine if land assembly is appropriate
IJ Rezone...
[J Promo materials...
[J Marketing packet for inquiries
Advocate with Stakeholders
Enforce Building Standards
Establishment of Incubator buildin
buildings for start-ups
Extend Light-Industrial A .
x
x
x
x
25
History of the EDA's Strategic Planning Efforts
The Farmington Housing and Redevelopment Authority transitioned into a seven-member Economic
Development Authority in February 2006. Later that year, the Farmington City Council and Economic
Development Authority (EDA) hired the International City-County Management Association (ICMA) to
develop an economic development strategy and to identify best practices in economic development.
The project was undertaken using a "peer assistance" approach} with IC~,~I:,! v g overall project
management, but enlisting the voluntary services of a "peer" group of?x~~rienced current and former city
managers with extensive backgrounds in economic development. Res'pl~nd!i'~ii!il!I!" the scope of services
outlined by the city, the project team established the following metRI~~Ology project:
dllL,
.
assessment of current conditions,,,,!,,,
review of competitive environment/common practj~~s,
identification of internal capacity,
review of best practice,
facilitated strategic planning process.
.
.
.
.
~:'::: i : Ii
i:il;I{':::',; L
The project was initiated in October, 2006 and'fylmm~~ed in.a joint"'I:!I:!lll~i~', of~,he City Council, EDA and.
key staff on January 22,2007. By February 200?ian~~PP9,~lc Developmen~'!i~~r'ategy was developed which
included six strategic issues confronting the city::II:,Qnce th'd,~:~IJ~~Mes were ~~elhtified, a series of action steps
to address them were developed} and responsibliti:~~ fO~!lt,9J1'dW~t.ij'~~i~i~!~la~d initial timetables were set
forth. See Attachment A for fthe Economlcq:~yelopment ~~:~ategy developed by the ICMA Peer
Team. "i'll' ,I
'::;; 0'. ' '''':'' I,::, ' '\!!I!i!,
Parties involved - Consultants: c,gtg~app, Cra,~f!:i aldron, Mark NaQ~/1,!,gfld Richard Fursman,
City Council: Kevan Soderberg, Mayor} Counci!nlembe~, David pritzlaff; Councilmember, Steve Wilson, Economic Development
Authority: Todd Arey, Chair; Paul HdiC:Jt;!:'Vice-Chdfh rM'hne!f/ahef;1:Y; Erik Starkman, Chad Collignon, Councilmembers Christy Jo
r' :;: "': '!! 'I ". , ' , , , II :: : ~ ill 1 L i; :", ' '" d ! ' " : i I ! I : : III ! I ! ! I : I d ' : i ! : II I'!:,: :,:: : IIIII i I .
Fogarty, and Davia McKriight/, City Staff: geter HerlofsKY~'Cit}J'Administrator; Lee Smick, City Planner; Tina Hansmeier, Economic
:': ,:i;:!:ill:"~;I!li!,;:i:;i! I,~l;i', ' ;":"1;11:,1111111'> ':lllii;id'Pi!!:':i:: 1"", .
Developmen~~peCialist; OthEt~~~:~~fhe Batul{~f;,r!DC Chamber; Brooke Walsh, ThisWeek News
,,:,i:!il!:iiii[liill ':'::\;!:;:i!!iiiiiili!i'\, ":"", "::...:,;':J
In ]une',iqQ7,the City of Farmip'ihon hirea,qmmunity Development Consultants: Richard Fursman and Jim
Norman tcl'~l~,~!re City councijjl:,~!R~' and~~y staff with the creation of a vision and Economic Development
Plan. The foIl6~ig?top areas fo~iilhe concentration of time, energy, and resources were agreed upon by all
parties and are sp~cif!ed in orde~i:~'s follows:
, "~I~:,I
1. Downtown DeveloPrt1~m,!~H!d Redevelopment
2. Industrial Development ,I!!'
3. Commercial Development outside of the Downtown area
Please see Attachment B for additional information that assisted in the identification of the EDA's top
priorities.
Parties involved - Consultants: Richard Fursman and Jim Norman, Economic Development Authority: Todd Arey, Chair; Paul
Hardt, Vice-Chair, Yvonne Flaherty, Erik Starkman, Chad Collignon, Councilmember Christy Jo Fogarty, City Staff: Peter Herlofsky,
City Administrator; Lee Smick, City Planner; Tina Hansmeier, Economic Development Specialist; Others: Ruthe Batulis, NDC
Chamber of Commerce; Ladonna Boyd, Dakota Electric Association; Doug Bonar, ISD 192
26
In January 2008 the City Council decided to disband the seven-member EDA board and begin serving as the
representatives on the Economic Development Authority Board becoming responsible for all economic
development initiatives. The new members of the EDA continued to focus their efforts on the priorities
listed above which include: Downtown Development and Redevelopment, Industrial Development, and
Commercial Development outside of the Downtown area.
Parties involved - City Council: Kevan Soderberg, Mayor; Christy Jo Fogarty, David McKnight, Dayid Pritzlaff, Steve Wilson,
Economic Development Authority: David Pritzlaff; EDA Chair; Christy Jo Fogarty, Vice-Chair; D ,"" McKnight, Kevan Soderberg,
Steve Wilson
:1
In January 2011- EDA composition was modified again witi,.,,~J!~ion of ~i:'~'~i~IY elected Counc
Bartholomay. Councilmember Bartholomay was elected as Chair of;.' II", E[)liliPI'" ""1'
Todd
In January 2009 the composition of the EDA changed again as the Boa~f~e
officials that will also serve as representatives of the EDA.i::ilii"
Parties involved - Economic Development Authority: Christy Jo Fogarty,
Larson, Mayor; Julie Mav. (new fDA members are underlined)
fDA's current composition: Todd....L.g. l~~~II.I!'M..." a.. y.o. r; Jason Bartho m. ..... i , Chair; Chris..ty, " '..}o Fogarty, Vice-Chair; Julie May, Terry
i:i:i:;:@ITiiIII!llllllLfi1111lliill!iI11i'ltil!i!lt I ~!~I~' .
DonneHy and exofficio member~Jt poug ISon ..:' , d Jeri JoHey "
ty Jo Fogarty, Vice-Chair; Terry DonneHy,
Parties involved - Economic Development AuthorIty:. ason Bartholomay, Chair,
Todd Larson, Mayor; Julie May
In August 2011, EDA Ex-Officio members: Doug
members.
y were sworn in as ex-officio
Jan '06
'06
Nov'06
Nov '06
ICMA Bus T",,'! ith City Council, EDA, and key staff. Cities toured included: Rosemount,
Oakdale, An6'ka, and Elk River.
Nov'06
SWOT Analysis Conducted (Exhibit_)
Jan '07
A joint meeting of the City Council was held. Building on the information generated by the
SWOT analysis, interviews and research process, the group identified the six most important
strategic issues confronting the City. Once those issues were identified, a series of action steps
to address them were developed, and responsibities for follow-through and initial timetables
27
Feb '07
June '07
July '07
July '07
Aug , 07
Aug , 07
Sept '07
Sept '07
Oct '07
Oct '07
Oct '07
'07
Jan '08
'08
'08
'08
were set forth.
Economic Development Strategy developed.
Community Development Consultants hired to assist with development of a vision and
Economic Development Plan.
Budget Imoact: $9,517
1'11"1
Visioning Process Began: Visioning Session focused on the struct'''~i,l~f"the EDA and
dill!
organization of City Staff as it pertained to the EDA. I
McComb Group L TD hired to conduct a Market Study t~i;;~lssis
future demand for commercial and industrial developmeht.
" '%1
Budget Imoact: $67,739.50'
in understanding the
Second Visioning Session: group participated(
,,,,,,,
he EDA.
First economic development newsletter was creat~,
Final Visioning Session: EDA's tOp,three priorities iden I ~q. The information compiled was
used to begin forming the econorhi~i'~,~XtJ~pment chaPt~~f9:r' h 030 Comprehensive Plan -
2008 Update and to create strategie~!,andi'~~rk lans for sta
':",':1i,
Last remaining HRA-owned industriaIP~;~~I~, e, ,hue??).
':'i"""I'i!!!llii,'i
ement ofthe C9~prehensive Plan was developed.
'I,
General Mark'e~jDgFoldertcfeated.
C/I.I\I1~rke~,~~udy COrflpJ~~ed, resu t~:"~~~i~FC:ity Planners with identifying future acreages
t~~eded to~U'~;~~~ addit!iq'l'l~1 commercial and industrial development/growth for 2030
Comprehensive:iBICin
';,1"1'; ,
':"I~~, EDA acquired:,!"!:'I:" approved the demolition of a blighted building locally known as the
"Riste." Building to m'ake way for future redevelopment efforts.
'!Iiiiii!!:!!'!!,:'!'!!:,::;" '!:i1i:i!::!!1
1;:'1::"::;:':::1:;;'1, ..,:-':>
Business~~Jnvestl'T1,ent Loan Created (CDBG)
';'I!i::I:!i!IIII!,;"II!!'
Transisition qf' EDA from 5 at large members and 2 council back to 5 council members
Industrial Park expansion research began, consultants hired, supportable acreage identified,
development of preliminary cost estimates. Budget Imoact: $32,000
Business Outreach Program developed (77 businesses visited: year 1)
Aesthetic Improvements to EDA-owned properties (McVicker and Riste) and renovation to EDA
owned building (305 3rd Street) completed. Budget Imoact: $
28
'08
Business Development Grant Program Created (CDBG)
(Include number of grants awarded and amounts)
'08
First Business (Service, Retail, & Dining) Guide Created
'09
New EDA Members: Todd Larson; Mayor, Terry Donnelly, Julie May
.
Sold EDA owned 308 Elm Street property (former parks gara AK Performance Graphics
!illl!II!!:,1
11:111:!",,:!ii!!:1
Sold EDA owned 305 3rd Street property (former liquor stq,re) on 5
dill'
'1.0
2010 accomplishments include: park garage sold (5/2010)...
May '1.0
May '1.1.
July '1.1.
Sold EDA owned 323 3rd Street property (McV. .
Aug '1.1.
Ex-Officio members: Jeri Jolley (Term: 1/3
Notes:
Possible Issues
.
.
.
.
.
.
.
.
.
t'fategic plan
29
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Major Economic Development Activities
July/August 2011
Prepared By: Tina Hansmeier
2011 Active Commercial Projects
AK Performance Graphics (interior/exterior renovation)
CDA Senior Housing (new construction)
Immanuel Dental (new construction)
Pizza Hut (build out)
Pizza Man Bar & Grill (interior remodel)
Savers Choice Market (Econo) (interior remodel)
Dodge Middle School- interior remodel
This Little Piggy (interior renovation)
Rising Stars Daycare NKA Magnificent Me (interior build out)
2011 Commercial Certificate of Occupancy's Issued
Anytime Fitness (build out/addition)
Farmington High School Minute Clinic (interior remodel)
NAPA Auto Parts (build out)
RP Holdings - office space 400 Oak Street (build out)
Schmitz-Maki Arena (ice system replacement)
Smiles for Life Dentistry (build out)
2011 Residential Permits
A total of 101 new residential permits have been issued as of August 8. (66 CDA Snior Apt, 35 single-family
homes). There are 13 new residential permits pending.
Friends, family, clinic staff, neighboring business owners, and many others involved in the project joined
Dr. Linden Dungy and his wife Donna to officially kick-off the construction of their new dental facility. Dr.
Dungy initially opened Immanuel Dental in Farmington 5 Y2 years ago at 511 Elm Street. Dr. Dungy purchased
the vacant lot adjacent to Gossips and the Farmington Steakhouse and construction began on July 25 for the
new 3,000 square foot dental clinic. Dr. Dungy hopes to have the clinic up and running before the end ofthis
year.
TEH
Page 1
8/1 0/2011
New Business
. Bernard's Glass (313 4th Street)
Ed Bernard is the owner of Bernard's Glass which specializes in the installation of glass shower doors
and enclosures, and the installation or replacement of mirrors, window glass and window or door
screens.
. Kyo Yook Do Martial Arts (328 3rd Street)
Shortly after USA Tae Kwon Do closed unexpectedly, Kyo Yook Do opened in its placeSince Kyo has
opened for business the owners have been busy remodeling the interior while the instructors and
students have been preparing for a tournament that will be held in Chicago. A ribbon cutting has been
scheduled for 3:30pm on Friday, September 9. Children, family, and adult classes are offered.
www.kyoyookdo.com
o Ribbon Cutting Scheduled for September 9th at 3:30pm
. Pizza Hut (19645 Pilot Knob Road) 0
The interior build-out is currently underway transitioning the former Beans & Bakery space into a Pizza
Hut takeout or delivery food service.
. This Little Piggy Catering (22280 Chippendale Avenue)
Seth Brittain, owner of This Little Piggy, has purchased the former BP Gas Station property on July 25.
Mr. Brittain is in the process of remodeling the building interior which will be used for the preparation
and storage offood.
Proposed Business Expansions
. Kwik Trip (217 Elm Street) - Store Remodel & Kitchen Addition
On August 9, the Planning Commission approved Kwik Trip's request for a Conditional Use Permit to
allow the proposed expansion of approximately 1.400 square foot addition on the south and west
sides of the existing store. The expansion area will allow additional kitchen space for food preparation
and sales area. The proposal also includes the addition of two gas pumps for a total of 9.
. Trinity Care Center(3410 213th Street W)
On August 9, the Planning Commission approved Trinity's request for a Conditional Use Permit to
construct a ten unit group home of approximately 8,700 square feet. The group home will provide
memory care services for persons suffering from Alzheimer's and dementia. There are future plans for
a second 10 unit group home to be constructed.
. Magnificent Me (formerly Rising Stars Daycare) (115 Elm Street) 0 651-463-4001
Magnificent Me is currently located at 115 Elm Street. The Planning Commission approved
Magnificent Me's recent request for a Conditional Use Permit to allow a daycare facility in the B-1
zoning district at Charleswood Marketplace. At it's August 9 meeting, the Commission denied with a
vote of 2-2, allowing the play area as proposed.
Commercial / 'ndustriallnquiries
Staff received 1 commercial property inquiry from 7/14 to 8/10. Several other development related and
financial assistance availability inquiries were received.
TEH
Page 2
8/1 0/20 11
r/;
NATIONAL
LEAGUE CENTER
of e.TI ES FOR RESEARCH
I & INNOVATION
10 Things You Should Know
NATIONAL
LEAGUE ~6~~EE~EARCH
of CITIES & INNOVATION
Copyright 2010
National League of Cities
Washington, D.C. 20004
NATIONAL
LEAGUE
of CITIES
CENTER
FOR RESEARCH
& INNOVATION
10 Things You Should Know
Christiana McFarland
Director
Finance and Economic Development Program
National League of Cities
Katie Seeger
Senior Associate
Finance and Economic Development Program
National League of Cities
National league of Cities I Center for Research and Innovation
The Role of Local Elected Officials in Economic Development: 10 Things you Should Know was the result
of a partnership between the National League of Cities Center for Research and Innovation and the
International Economic Development Council (IEDC). IEDC staff were instrumental in facilitating a
series of input sessions with economic development officials during their conferences in October 2009
and February 2010. IEDC staff also reviewed the guide and provided constructive feedback. NLC also
recognizes the direct input and guidance provided by members ofIEDC, members ofNLe's CityFu-
tures Panel on Community and Regional Development, and other local officials.
About the National League of Cities
The National League of Cities is the nation's oldest and largest organization devoted to strengthening
and promoting cities as centers of opportunity, leadership and governance. NLC is a resource and advo-
cate for more than 1,600 member cities and the 49 state municipal leagues, representing 19,000 cities
and towns and more than 218 million Americans.
Through its Center for Research and Innovation, NLC provides research and analysis on key topics
and trends important to cities, creative solutions to improve quality of life in communities, inspiration
and ideas for local officials to use in tackling tough issues, and opportunities for city leaders to connect
with peers, share experiences, and learn about innovative approaches in cities.
About the International Economic Development Council
The International Economic Development Council (IEDC) is the premier membership organization
dedicated to helping economic development professionals create high-quality jobs, develop vibrant
communities and improve the quality of life in their regions. Serving more than 4,600 members,
IEDC represents the largest network of economic development professionals in the world. IEDC pro-
vides a diverse range of services, including conferences, certification, professional development, publi-
cations, research, advisory services and legislative tracking.
About the Authors
Christiana McFarland is the director of the Finance and Economic Development Program in the Cen-
ter for Research and Innovation at the National League of Cities. Katie Seeger is senior associate in
the Finance and Economic Development Program. Caitlin Geary, finance and economic development
fellow, also contributed to the guide.
William Woodwell, editorial consultant, and Lara Malakoff, NLC senior program associate for out-
reach, provided editorial assistance, and Alexander Clarke, NLC manager of creative design and pro-
duction, designed and managed the production of the report.
National League of Cities I Center for Research and Innovation
Table of Contents
Introduction
3
1 . Your local economic strengths and weaknesses
City Example: San Buenaventura, Calif. (Ventura)
5
2. Your community's place in the broader regional economy
7
3. Your community's economic development vision and goals
City Example: Mission, Kan.
9
4. Your community's strategy to attain its goals
City Example: Littleton, Colo.
11
5. Connections between economic development and other city policies
City Example: Economic Prosperity Element, San Diego, Calf.
13
6. Your regulatory environment
15
7. Your local economic development stakeholders and partners
City Example: Garland, Texas
17
8. The needs of your local business community
City Example: New York, New York
19
9. Your community's economic development message
21
10. Your economic development staff
23
Conclusion
25
National League of Cities I Center for Research and Innovation
Introduction
Economic development is the process of building strong, adaptive economies. Strategies driven by local
assets and realities, a diverse industry base and a commitment to equality of opportunity and sustain-
able practices have emerged as those that will ensure a strong foundation for long-term stability and
growth. Even within the parameters of these principles, what constitutes success in economic develop-
ment and the specific strategies to accomplish it will look different from place to place. Despite these
differences, leadership is consistently identified as a critical factor in effective economic development.
Dedicated leadership is needed to raise awareness, help develop and communicate a common vision,
and motivate stakeholders into action. Although leadership can come from many places within the
community, local elected officials are particularly well-positioned to take on this role. The political
influence of elected leadership is critical to helping communities stay the course coward a vibrant
economic future. From the bully pulpit to the design and coordination of public policies. mayors and
councilmembers have opportunities every day to effect change and promote a strategic vision of eco-
nomic growth for their community.
The goal of this guide is not to provide a one-size-fits-all solution to economic development or even
to offer an Economic Development 101. Nor does this guide contend that elected officials should be
economic development experts. The goal is instead to identify fundamental ways elected officials can
become informed and strategic decision-makers who can connect the policy "dots," be effective com-
municators and take a leadership role in economic development. The guide is based on the premise that
elected officials can and should actively participate in and lead long-term development strategies that
make sense for their community.
The format of the guide is a "top 10 list" of things elected officials should know about economic devel-
opment in order to be effective leaders. These include:
1. Your local economic strengths and weaknesses. A stronger understanding of your
community's economic profile will help you create a realistic vision and strategies
for economic development.
2. Your community's place in the broader regional economy. With a firmer grasp
of how your community fits into the broader region, you're better prepared to work
with other jurisdictions to share responsibility for regional economic success.
3. Your community's economic development vision and goals. Local elected offi-
cials can playa key role in building consensus for a vision and goals that provide
clear direction for local economic development.
4. Your community's strategy to attain its goals. A strategic approach means linking
economic development goals to specific activities, allocating a budget and staff to
these activities and evaluating performance based on measurable outcomes.
5. Connections between economic development and other city policies. When
crafting economic development policies, it is essential to consider how other city
policies (e.g., transportation or housing) affect your economic development goals.
3
The Role of Local Elected Officials in Economic Development I 10 Things You Should Know
6. Your regulatory environment. Your community's regulatory process should allow
for timely, reliable and transparent resolution of issues facing businesses, while still
remaining true to your long-term economic development vision.
7. Your local economic development stakeholders and partners. Local officials should
think strategically on a project-by-project basis about who needs to be involved, the
resources they bring to the table, and what it will take to get them engaged.
8. The needs of your local business community. Local officials can help create an
environment that supports the growth and expansion oflocal businesses, primarily
by opening lines of communication.
9. Your community's economic development message. You will want a clear, accurate
and compelling message that reflects your local vision and that helps ensure broad
support for economic development projects undertaken by the city and its partners.
10. Your economic development staff. Local elected officials will be more effective
in leading economic development activities to the extent that they forge strong
relationships with staff members who work on these issues on a daily basis.
4
National League of Cities I Center for Research and Innovation
1 . Your Local Economic Strengths
and Weaknesses
Your community's strengths and weaknesses, such as quality-of-life amenities, infrastructure and work-
force skills, determine the potential of your local economy to support economic growth. This economic
profile lays the foundation for creating a realistic vision and strategic direction for economic success
that is unique to your community. Information about your local economy can also help engage and
educate constituents and build community support for economic development decisions.
ASSESSING YOUR LOCAL ECONOMY
With the assistance of your economic development staff and input from stakeholders, you can iden-
tify factors within and outside of the control of local government that impact and shape your local
economy. Identifying strengths and opportunities is crucial, but local officials also should pay attention
to weaknesses and potential threats.
For example, what industries in your community and region are growing or struggling? What are the
skills of your workforce, and are they sufficient to meet the needs of business? What barriers and sup-
5
The Role of Local Elected Officials in Economic Development I 10 Things You Should Know
port services exist for local entrepreneurs and small businesses? Is the local and regional housing stock
diverse enough to provide for a wide range of housing needs?
All of these factors should be understood in comparison to other communities and in the context of
broader economic trends. As a result of this process, you will have a stronger sense of your unique local
assets, as well as what you can and should be doing to buUd on strengths and mitigate weaknesses.
Taking Action, Asking Questions
· What unique strengths can your community build on for economic development
and growth?
· What weaknesses pose a barrier to economic development? To what extent can you
mitigate these weaknesses - and how?
· How do your community's strengths and weaknesses compare to those in other
communities?
· How are economic conditions changing in your city and region?
6
National league of Cities I Center for Research and Innovation
2. Your Community's place In
The Broader Regional Economy
Understanding your local economy also means knowing how your community fits into the broader
region. Although increased competition for jobs, tax base and private investment can put political
pressure on elected officials to go toe-to-toe with neighboring jurisdictions, the reality is that local eco-
nomic success depends on regional economic success.
This is particularly true in the context of the global economy, where economic competition may not
be with your neighbor, but with a city in China, India or Ireland. Firms engaged in global economic
activity rely on a breadth of resources available in a region, including workers, transportation, housing,
and amenities. In nearly all cases, one community does not have full capacity needed to support these
activities. Cities that focus on competition within the region, instead of collaborating for economic
development, are placing their economic future at risk.
With a firmer grasp of your community's place in the region, you're better prepared to work with other
jurisdictions to share responsibility for promoting regional economic success. Cities in the Denver
region, for example, work together to draw businesses and other economic activity to the region while
agreeing not to compete or offer incentives to firms to locate in their specific communities. Similarly,
many cities work together on regional marketing efforts, typically via participation in a regional coun-
cil. These collaborative efforts attract firms, investment, and employment that benefit the entire region.
Participating in regional activities may present some political difficulties if the local economic benefits
are not well understood by your constituents. Local elected officials should be prepared with the facts
about how regional economic success translates into improved employment opportunities, tax base, or
amenities for your city and the people who live there. Local officials can work with their staff to craft a
clear, accurate message about their involvement in regional activities, and communicate this message to
community through the media, neighborhood meetings or other public venues. It can serve as a start-
ing point for a community dialogue about the importance of regional collaboration to local success.
Taking Action, Asking Questions
. How do you define your economic region?
. How does the economic strength of your city
depend on what happens in other cities and
towns in the region? How does regional eco-
nomic activity provide direct or indirect ben-
efits to your community?
. What assets does your community contribute
to the regional economy (e.g., workers, hous-
ing, amenities, transportation)?
. What regional organizations, partnerships
and/or activities already exist? To what extent
is your community involved?
7
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3. Your Community's Economic
Development Vision and Goals
A primary challenge in the practice of economic development is choosing among many competing pri-
orities and various activities. A clear economic vision and goals are needed to provide a framework for
strategically assessing and coordinating these efforts. The vision stems from the community's values, its
collective sense of local economic strengths and weaknesses, and consensus on a desired future. Goals
are more tangible expressions of the vision and provide specific direction for actions.
For example, the City of Albuquerque, New Mexico's economic development initiative "thrive!ABQ'
identifies the city's economic vision as a city with a vibrant business climate that's accessible, user-friendly
and welcoming to all. The three primary goals of "thrive!ABQ' are:
. Albuquerque First: Retain existing businesses and industries by fostering partnerships
with local businesses and increasing spending in the community.
. Albuquerque Easy: Remove barriers to conducting business within the city.
. Albuquerque Recruits: Make the city an attractive place for businesses to locate.
According to the American Planning Association's Economic Development Toolbox (2006), a sound eco-
nomic vision and goals should:
1. Balance what the jurisdiction would like to achieve with what resources and public sup-
port the jurisdiction can realistically expect to muster in support of that vision.
2. Be consistent with the role of the jurisdiction's economy in the larger regional and
state economies.
3. Be understandable to citizens without technical training or experience in
economic development.
4. Be produced in a way that makes it possible to incorporate it in the jurisdiction's
comprehensive plan.
If your city already has an economic development
vision, make sure your policy decisions reflect the
principles in the vision. In cities that do not have an
economic vision, local elected officials can help initiate
a community visioning effort. A well-designed vision-
ing process will surface an array of ideas, opinions and
objectives from a diverse group of stakeholders. An
important role for elected officials is to help bring peo-
ple to consensus and agreement on a common purpose.
9
The Role of Local Elected Officials in Economic Development I 1 0 Things You Should Know
Taking Action, Asking Questions
· Does your community have a clearly stated vision and goals for economic development?
If so, what are they?
· Does the vision reflect the community's values as well as its strengths and weaknesses?
· Do your constituents and key stakeholders understand and agree upon the community's
vision and goals?
· To what extent do local government policies support the vision and goals?
10
National League of Cities I Center for Research and Innovation
4. Your Community's Strategy
To Attain Its Goals
Once the economic development vision and goals are defined, it is important that they not be shelved,
but that they guide and determine you community's economic development strategy. If the community
has been involved in the process and believes in the vision and goals, residents will hold political leader-
ship accountable for putting them into practice. Strategic implementation of the economic development
vision involves linking economic development goals to specific activities, allocating a budget and staff
to these activities, and evaluating performance based on specific, measurable, agreed-upon outcomes.
There are many local activities that can be used to accomplish your city's long-term economic vision.
The types of economic development policies and tools pursued by your community will depend on
those permitted by your state, as well as how your local government perceives its role in stimulating
private sector economic activity.
The traditional local government role in economic development is to facilitate economic activity by
offsetting the cost of doing business in your community (in terms of time, opportunity and money).
Strategies include land assembly, modifying the permitting process and providing job training. More
entrepreneurial roles, as well as strategies that more directly address the demand for local products,
may include seeding and investing in local small businesses, matching gaps in supplier/buyer linkages
and international trade promotion. Local elected officials can work with city staff, businesses and other
stakeholders in the community to educate themselves about the types of programs and tools that are
available to them and to decide which economic development role is best for their city.
You can also look to "best practices" in other communities; however, it is important to remember that
economic development activities that work in one place will not necessarily work in another. Following
economic development fads or strictly replicating another city's approach without putting it in the con-
text of your community is a recipe for failure. Instead, elected officials can learn how and why another
city was successful and adapt those practices to local realities.
Elected officials should also work with their staff to determine a set of expected outcomes, the neces-
sary level of resources (staff and budget) needed to achieve these outcomes and performance metrics to
evaluate and measure them. In the context of short-term political cycles, it may be tempting to stray
from the strategy and only consider economic development in terms of traditional, more tangible suc-
cesses, such as attracting a new, large employer. For this reason, it is important that elected officials and
staff agree upon, are committed to and accurately measure even incremental economic achievements.
This will allow political leaders to demonstrate success and champion all various ways the community
is supporting economic activity.
Strategic implementation of economic development, from selecting activities that support the vision to
accurately measuring progress, enables local governments to be more responsive in an increasingly com-
plex and uncertain economic environment. It allows the community, staff and elected officials to be part
of a "continuum" ofleadership and to make more deliberate progress toward long-term economic success.
11
The Role of local Elected Officials in Economic Development I 1 0 Things You Should Know
Taking Action, Asking Questions
· How do your goals drive everyday actions to develop and grow your local economy? Can
you develop better strategies, if needed, which make sense for your community?
· What is the general orientation of your local government toward supporting private sec-
tor economic activity? What tools is your city willing to and able to use?
. Is your city's budget and staffing aligned with its strategies for economic development?
· How will you measure and evaluate your city's economic development efforts over time?
· What can you do to celebrate incremental successes?
12
National league of Cities I Center for Research and Innovation
5. Connections Between Economic
Development and Other City Policies
It would be nearly impossible to list all of the various ways in which local government policies interact
and overlap. When crafting economic development policies, it is essential to consider how other city
policies support or discourage your economic development goals. For example. are your transportation
initiatives supporting local retail? Are your local workforce training programs aligned with your sustain-
ability plans? Is the regional housing stock adequate to meet the needs of workers in your community?
By thinking about policies holistically, you can avoid detrimental policy interactions and create an
environment for different policies to support and enhance each other.
Policy integration has become even more important over the past 30 years as the drivers of economic
growth have broadened significantly. Today. the scope of economic development and the interests and
needs of the business community extend well beyond market access and transportation networks.
Social and professional networks. educational institutions, quality-of-life amenities, talent and work-
force skills and housing are important assets that contribute to your community's economic profile.
Additionally, there is increased recognition that improvements in economic equity and the natural
environment are critically important to a strong local economy.
For example, the City of Portland, Ore., has created a Sustainable City Partnership to foster a collabora-
tive, citywide effort to integrate sustainable practices and resource efficiency into municipal operations
and to strengthen existing policies and efforts. A primary partnership role for city officials and staff is
to develop connections between environmental quality and economic vitality. The city has encouraged
sustainable business practices and has leveraged sustainability as a key economic sector.
One strategy to ensure that all of the various sources of economic growth and the key elements impact-
ing economic development are coordinated is to develop your economic development activities in con-
junction with your community's comprehensive planning process. Some communities have formalized
this process through implementation of an Economic Prosperity Element (page 14).
Taking Action, Asking Questions
. How do other city policies - in areas from transportation and housing to public safety
- affect your goals for economic development?
. To what extent does your city need to change existing policies so they are aligned with
and support the economic development vision and goals?
. How often do various city departments communicate? To what extent is there a shared under-
standing of and commitment to successful economic development across city government?
. Are your city's economic development strategies and goals reflected in the comprehensive
plan? Can you add an Economic Prosperity Element to the plan?
13
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The Role of Local ElectecI Officials in Economic Development I 1 0 Things You Should Know
14
National League of Cities I Center for Research and Innovation
6. Your Regulatory Environment
Your regulatory environment directly impacts the ease of doing business in your city. For business
leaders, time is money; they want to know that the regulatory process provides for timely. reliable and
transparent resolution of key issues. If your city's regulatory policies are riddled with delays. confusing
and redundant steps and multiple approval processes, a prospective business may very well choose to
locate or expand in another community.
Local officials can improve the regulatory environment for businesses by ensuring that the development
review process and other policies are streamlined and transparent. The key to success is ensuring con-
sistency and clarity about expectations, timelines. regulations. and costs. This will alleviate much of the
uncertainty involved in economic development projects by allowing businesses to accurately anticipate
the timing of the process and to build their plans accordingly. In addition, a better regulatory environ-
ment can promote information-sharing and better communication with local businesses so you can
work together to identifY potential challenges or problems.
As a local elected official, your first step is to ensure that you have an understanding of the current regu-
latory system and where there may be problems. This will require you to gather input from the business
community about their frustrations and experiences. Working with your local chamber of commerce
or other local business organizations may be helpful in this process. To gain additional perspective, you
may want to consider going through the process yourself, as if you were a developer or a new business.
This will allow you to have firsthand knowledge of the time. costs, hassles and clarity of the process.
When examining your regulatory process. be mindful not to throw the good out with the bad. Not all
development is good development, and it is important that your regulatory processes reflect your long-
term economic development vision so you can safeguard against detrimental projects. The key for your
city is to find a balance and remove unnecessary delays and hurdles, while still preserving the integrity
of the community's economic development vision and goals.
Taking Action, Asking Questions
. Are your local agencies charged with regulatory processes attuned to the needs of busi-
nesses. particularly efficiency and transparency concerns?
. Are there one-stop approvals or other ways to expedite review processes?
. How long does it take to get a new development proposal in front of a local planning board?
. Do businesses have access to clear information about local regulations from one source?
. Is there a designated city staff person who helps facilitate the process to ensure that things
go smoothly?
15
Notional League of Cities I Center for Research and Innovation
7. Your Local Economic Development
Stakeholders and Partners
A group of diverse stakeholders within and outside local government contribute to economic develop-
ment. These include both large and small businesses, nonprofit organizations, workforce and training
organizations, universities, department staff and many others. Economic development partnerships will
likely change depending on the activity, so it is important to think strategically on a project-by-project
basis about who needs to be involved and the resources they bring to the table.
Collaborative partnerships are especially important given the increased complexity and diversity of
interests in economic development. Harnessing the breadth of resources, knowledge, leadership, and
skills of stakeholders that may not typically interact is essential for effective implementation of your
city's economic development strategies. By facilitating broader and deeper interaction among local
government, business, the community, and economic development activities, local elected officials can
ensure that policy decisions will be in tune with all of the other work that is happening in the com-
munity to advance the city's economic development goals.
Your local government may not always be the lead organization for an economic development project.
Sometimes, the chamber of commerce might lead the way. In other instances, it might be a different
community organization or business leader. But even if the city is just one stakeholder among many,
local elected officials can make themselves available to help bring the right people and organizations to
the table. Important roles for municipal leaders include: reaching out to the various parties; working to
break down communication barriers; helping to facilitate consensus; and ultimately, coordinating and
leveraging action.
Taking Action, Asking Questions
. Who are the key stakeholders (individuals, organizations, businesses, city staff) that can
help strengthen your city's local economic development efforts?
. To what extent are stakeholders already communicating and working together on
these issues?
. What will it take to break down any barriers that exist among key stakeholders and to get
them to do more collaborative work?
. What resources do various stakeholders bring to the table in terms of financial support,
people, skills, contacts and more?
17
The Role of Local Elected Officials in Economic Development I 1 0 Things You Should Know
18
National League of Cities I Center for Research and Innovotion
8. The Needs of Your Local
Business Community
Local businesses are essential to a stable and diverse local economy. In recent years, many cities have
shifted their primary economic development focus away from attracting large firms from outside the
community to growing new businesses from within and helping existing businesses survive and thrive.
Local officials can help create an environment that supports the growth and expansion of local businesses.
In the case of entrepreneurs and small businesses, many fail not for lack of ideas, but on planning
and management. By allocating resources for entrepreneurial and new business support services, local
governments can help these businesses overcome critical barriers to success. Such services include small
business development centers, entrepreneurship training, market information, networking opportuni-
ties, marketing assistance, business incubators and even financing opportunities.
Running a business is a full-time job, and even if local services are available, business leaders may be
unaware of the assistance available to them. Even more likely, they may not automatically view the city
as a resource or an ally. By making the effort to reach out and communicate with your local business
community, whether through your local chamber of commerce, organized events or visiting businesses
individually, local officials can gather input to help improve local business policies and demonstrate that
the community cares about the success of their business.
It is important for local elected officials to bring the same commitment and enthusiasm to existing
business as they do to new business prospects. The city often creates incentives or other policy packages
to attract new employers, and celebrates a new, large company with ribbon cuttings and stories in the
local media. By similarly celebrating local business accomplishments, you can show the city's support,
increase the business's profile and draw attention to economic development success stories that often
go unnoticed.
Additionally, by publicly highlighting the achievements of your local companies, you will build your
city's reputation as a business friendly community. This, in turn, may encourage outside businesses to
take a second look at your community as a desirable location, while providing existing businesses with
even more reasons to stay in your jurisdiction.
When making policy decisions focused on business retention and expansion, including small business
and entrepreneurial development, it is important to remember that many local businesses need time to
mature and grow. Although this form of business support may not deliver an overwhelming, immediate
economic impact, the benefits of staying the course with your local businesses can provide greater long-
term pay-offs. These include a more diversified, stable economy, a business community with stronger
local ties and maybe even the next, great Fortune 500 company.
19
The Role of Local Elected Officials in Economic Development I 10 Things You Should Know
Taking Action, Asking Questions
· What does your local government do to find out the needs of your business community?
· Who in government regularly communicates with individual businesses and the business
community at large? How does this happen?
· To what extent do you celebrate milestones achieved by existing businesses in your
community?
· What support services does your city offer to entrepreneurs and small businesses? What
more could you do?
20
National League of Cities I Center For Research and Innovation
9. Your Community's Economic
Development Message
Strong communications and a compelling message are vital to successful economic development and
a primary responsibility for local elected officials. An economic development message that is based on
your community's collective vision and is conveyed by all key stakeholders will establish a consistent
community "brand" and competitive identity to the outside world.
Local elected officials can use public speeches, interviews and other communications to rally the com-
munity around their economic development message. In addition to publicly promoting the message,
local elected officials can work with their staff to ensure that all economic development partners have
the information that they need to support the message or to accurately convey the message to others.
This may be data about the economic role they play in the community, or marketing materials that
they can use to engage others outside the community. These small steps go a long way in generating a
positive reputation of your community.
Sometimes, cities let politics and minor disagreements about the direction of economic development
affect their city's public image. This can detrimentally impact the confidence investors have in your
community as a place to do business. Developers, business owners and others want to be assured that
their investment in your community will have broad support among local leaders, residents and key
partners. If those who impact the success of a business or economic development project are not uni-
fied. the confidence of the investor will falter. Local elected officials can help manage internal disputes
and ensure that all stakeholders remain committed to the message and the vision it conveys.
Taking Action, Asking Questions
. How do you currently communicate about your city's economic development activities?
To what extent are you using speeches, media interviews and other forums to highlight
an economic development vision and goals?
. Does your city have a clear and consistent message about economic development for the
outside world?
. How do your city's communications efforts dovetail with what other organizations in the
community (e.g., the chamber of commerce) are doing? Are there ways to enhance coor-
dination on communication activities?
21
Notional League of Cities I Center for Research and Innovation
10. Your Economic Development Staff
As discussed throughout the guide, local elected officials have clear and specific roles to play in their
cities' efforts to build a strong local economy. However, success in filling these roles often depends on
the relationship between elected officials and staff members who work on economic development issues
on a daily basis.
As a local elected official, you are often the public face and the cheerleader for your city on economic
development. When you are giving a speech, talking to a local business or discussing a new project with
constituents, you must be prepared with the facts or run the risk of seeming uninformed and out of touch.
Staying up to date requires open and regular communications with and trust in your city's economic
development staff. Your relationship with staff will enable you to gain a better understanding of the
economic position of your city, changing local and regional conditions and your city's economic devel-
opment plans and priorities. You will be better able to articulate economic goals to constituents and
the media and make more informed policy decisions based on the most current information. This is
especially important in the current economy, as city resources are scarcer and businesses and citizens
alike are looking for informed leadership.
Local officials should begin building a strong relationship with economic development staff at the
beginning of a political term or new project. Economic development is a complex topic; most newly
elected officials may not have an in-depth understanding of the current economic policies or the city's
long-term vision and strategy. By forging a relationship early on, local officials can come up to speed
more quickly and be able to make better policy decisions in the long run.
lt's also important to consider what expertise and knowledge you bring to the relationship that city staff
may not have. Most elected officials come to office with a professional background in an area other than
local government, such as banking, small business or healthcare. This can make you uniquely qualified
to represent the city to important economic interests. With open communication, your city's economic
development staff can become more aware of your skills and seek opportunities to use them.
Taking Action, Asking Questions
. How often do you talk to the key economic development staff in your city?
. Do you get regular updates, or "cheat sheets," about the issues, trends and successes of
economic development in your city?
. What are your expectations about economic development? Have you discussed this with
the economic development staff?
. What economic development issues or practices could you learn more about?
23
National League of Cities I Center for Research and Innovation
Conclusion
As an elected official, you make decisions every day that impact the future of your community. It is of criti-
cal importance that your decisions and actions support your community's vision and do not work at cross
purposes with existing efforts. This is particularly true in today's rapidly changing economic environment.
You can use this guide to initiate conversations - or ask questions - with key players within your
community. The first step will most likely be to initiate conversations with your economic development
staff about how to best use your skills and political capital to support a strategic economic direction.
Even if you are already engaged in economic development, this guide can serve as a reminder of all the
leadership roles needed for economic success. It can also help you identify how your economic devel-
opment role should vary over time to support the changing needs of your community and economic
development stakeholders.
Your city may have all the right assets, partners and tools, but may never realize its full potential with-
out a leader to bring all the pieces together. You have the power and the ability to do what's needed to
advance the cause of successful economic development for your city.
25
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time for the U.S. economy. The unemployment "America's Next Great Restaurant" brought with it
rate remains relatively high, and fears resulting the opening a new eatery at the Mall of America.
from the uncertainty of foreign markets such as Soul Daddy is a southern home-cooking, fast-
Greece have continued to delay the inevitable casual-style restaurant and is one of three across
comeback of the commercial real estate market. the United States. In addition, Morgan's in the
Tliougncfeloye;C1; the rriarket;is~-ri'(Wat"a~stan-dstill Park, an American-style sit-down restaurant also
and_has_been_maintaining_a slow_buLpositive. sig~ed a lease in the second quarter for a 6,700
- - - -- -- - - -
in~~e'9 This has kept optimism high that the square-foot location at Park Place Promenade in
return is just around the corner. Brooklyn Park.
The second quarter of 2011 produced only a few
new major retail transactions. CSM Corporation
purchased the 623,000 square-foot Lockheed
Martin site and has plans to build a mixed-use
office/retail development. The Oakdale Housing
and Redevelopment Authority purchased the 20
acre site housing the vacant Oakdale Mall. It has
plans to do a major mixed-use site including over
150,000 square feet of retail space.
For the third straight quarter, Wal-Mart managed
to make headlines with the announcement of its
plans to open a store in downtown Minneapolis.
This is its latest attempt at loosening Target's grip
on the Minnesota market. Big Lots made the news
with its plans to open three new stores across the
metro. It plans to open new stores in Maple
Grove, Eagan and Woodbury, giving them a total
of five stores in Minnesota.
Some new construction broke ground in the
second quarter, with Wal-Mart leading the way. In
April, it broke ground for a 30,000 square-foot
store in St. Paul and a 180,000 square-foot
supercenter in Fridley. The 36,000 square-foot
Whole Foods planned for Edina broke ground last
quarter as well. The only new retail space
delivered in the second quarter was the 18,000
square-foot Aldi's grocery store in Oak Park
Heights.
Second-quarter absorption was positive at
149,564 square feet, continuing the positive
absorption trend in the market. W~.-had a
-- -
de~~_qsj3,:..in_vacancy_ and a slight increase~ in
--- ----- - - - - --.
availabili!y,~which ended the quarter at 7.7% and
------ --- --- ....
1 Q,;t%. resp~cti~ly.
NollAla.. Rat. _ $16.05
.'y'~.~.~.~~y...~.~!.~.~~~..~.~~.~!~.~.~..~~!!......................................................................................~~.:~~~.~.~.~..~....~:.~.........
10%
9%
B%
7%
6%
".
J 5%
;j':
4%
3%
2%
1%
$22
$20
$IB f
'"
$16
0% -- $14
2004 4004 2005 4005 2006 4006 2007 4007 200B 400B 2009 4009 2010 4010 2011
@ 2010, CB Richerd Ellis, Inc.
Submarket Statistics
........................................................................................................................................................................................................................................................
Absorption . Avg. Asking
Market Rentable Area Vacancy Rate SF Under Construction SF Lease Rate $ Availability Rate
..............................................................................................................................................................................................~.~~...............................................
A.V.-Lakeville 3,499,383 4.7% 2,022 0 $20.02 10.9%
[ii!.ookdale 3)80,561 22.6% 12)79 18,000 $13.76 24.1% 1
Surnsville 3,486,605 9.7% 7,910 50,000 $18.47 10.3%
~houn 1,258,636 8.3% 3,600 0 $26.12 8.3% _J
Coon Rapids 4,321,506 5.2% 2,475 0 $16.36 5.7%
~;a-n/iGH7H- 1)96,232 5.7% (3,630) 0 - - $13.84 9.4%':=J
Eden Prairie 3)13,103 3.6% 5,125 0 $16.65 3.8%
I Maple Grove 5,331,416 _ 6.50/~_ 94,370 144,OOO-ru.~_?:I% ~
Maplewood 3,563,352 7.3% 11)45 0 $17.51 8.1%
~Mpls CSD 2,297,199 13.5% (3~ 981) 7,000 _ __~ .98 14.4%"]
Northtown 3,114,465 11.5% 6,170 198,000 $11.24 12.3%
IRidgedale 5,652,096 5.8% (2,277) 13,000 __ ~.~ = ~.3~~_J
Rosedale 5,206,953 6.4% 2,611 30,000 $18.07 7.3%
ISouthdale __ 9,553,570 7.1% 43,085 36,000 2~_ _ }.3% --1
St.Paul 1,413,147 9.9% 9,029 0 $11.50 10.0%
~stSt~ Paul 1,296,692 9.9% -(2,i26) 0 $11.91 _ - 10.3% -l
Woodbury 4,684,062 12.0% (4,343) 0 $8.91 12.9%
........................................................................................................................................................................................................................................................
Total 63,968,978 8.8% 149,564 496,000 $16.05 9.9%
Unemployment Rate
U.s. _ 9.1%
Mlnnesoto _ 6.6%
M5P _ 6.3%
...........................................................................................................................
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
r "'"
I
J 1-
/
1- -
, I ,
.
l I
-
-- --
I
. ! , -
. . I
I-I- I 1- 1:- I- 1- I-I- . I- I- 1'- 1- -
I I
I I
The national rate remained relatively flat at
9.1 %, and the Minnesota rate dropped from
7.2% to 6.6%. The Minneapolis/St. Paul non-
seasonally adjusted rate fell from 6.9% to
6.6% in the second quarter. As we move into
the summer and fall seasons, a decrease in
metro unemployment is expected as the rates
are not adjusted for seasonal employment.
2006
2007
2008
2009
2010
2011
CBRE
CB RICHARD ELLIS
@2010.CBRichard Ellis, Inc.
Absorption
1,400 -
... 1,000
..... -
0
~
c 600
:;:
"
0
..c
....
200
Absorption
. 156,13OSFYTD
1,800 --------------------------------------------------------
-200
-600
2005 2006 2007 2008 2009 201 0 2011 YTD
Construction Completions
... 1500
..... -
a
~
"'"
c
:;:
" 1000 -
0
..c
....
500 -
0
Completfons. 271,OOOSFYTD
2500
2000
2005 2006 2007 2008 2009 201 0 2011 YTD
11.0%
Vacancy vs Availability
Voconcy. 7.7%
Avollobllity . 10.4%
10.0%
9.0%
8.0% -
7.0% -
6.0% -
5,0% -
4.0%
2005 2006 2007 2008 2009 2010 2011 YTD
CBRE
CB RICHARD ELLIS
The 2nd quarter 2011 ended with a positive
149,564 square feet of space being
absorbed in the Minneapolis/St. Paul market.
Absorption was in the black again for the
fourth straight quarter, giving us a full year of
positive absorption. The overall 2010
absorption at the end of the year was a
positive 16,116 square feet. After only two
quarters, the 2011 YTD absorption is already
a positive 156,130 square feet.
The Aldi's grocery store in Oak Park Heights
was the only construction completed in the
2nd quarter of 2011. However, there are
currently nearly 500,000 square feet of retail
space under construction, and the rest of
2011 should see a further increase in
completions with the planned opening of the
1 74,000 square-foot Super Target in
Woodbury and the 120,000 square-foot
Village at Maple Grove retail development.
Availability -incrita~ei and-':.aca!lcy~~r_~pp-ed
in:.fbe-2nc!. qu~rter ~L2Q11, eo.di!:lg.qt-10..1%
and 7":"7~%-respectively. Although the-cha~nge
w..as-:=still...small, it was.notably;;.larger-than the
p.!:.ev..ious-th ree4q ua rters. Th is*cha ngejs_pr~oof
in itself.tnat.the~markeHs~improving.
@ 2010, CB Richard Ellis, Inc.
.
MarketView Minneapolis/St. Paul Retail
!~p'..!'~!.~~.~.~p'.~.I.!~!.~~:..~~.~.!.!~~.~~.~~!.~~.~~...................................................................................................................
Size (Sq. Ft.) Type Tenant/Buyer Location
623,000 Sale CSM Corp. Lockheed Martin Building, Eagan
r- Tamarack Village, Woodbury
Q6,000 Lease Big Lots
I
14,000 Lease Total Hockey Circuit City Plaza, Minnetonka
r--- l
17,500 Lease Broadway Pizza Crystal Town Center, Crystal
I --
6,700 Lease Morgan's in the Park Park Place Promenade, Brooklyn Park
I
,770 Lease Pearl Vision Roseville Crossing, Roseville
~.~~!!I.~.~.~~~.M~.p..................................................................................................................................................................
o
~
3.5
miles
Maplewood
Woodbury
....-'\..."\... .-"'.
~.~
Burnsville
CBRE
@ Copyright 2010 C8 Richard Ellis (CBRE) Statistics contained herein may represent 0 different doto set than that used to
generate Notional Vacancy and Availability Index statistics published by CB Richard Ellis' Corporate Communications
Deportment or CB Richard Ellis' research and Econometric Forecasting unit, Econometric Advisors. Information herein has
been obtained from sources believed reliable. While we do not doubt its accuracy, we hove not verified it and make no
guarantee, warranty ar representation about it. It is your responsibility to independently confirm its accuracy and
completeness. Any projedions, opinions, assumptions or estimates used are for example only and do not represent the
current or future performance of the market. This information is designed exclusively for use by CB Richard Ellis clients,
and cannot be reproduced without prior written permission of CB Richard Ellis.
CB RICHARD ELLIS
Average Asking Lease Rote
Rate determined by multipl~ng the asking net
lease rate for each building by its available
space, summing the products, then dividing by
the sum of the available space with net leases
far all buildings in the summary.
Net Leases
Includes all lease types whereby the tenant pays
an agreed rent plus most, or all, of the operating
expenses and taxes for the property, including
uHliHes, insurance and/or maintenance
expenses.
Market Coverage
Includes all competitive retail buildings 30,000
squore feet and greater in size.
Net Absorption
The change in occupied squore feet from one
period to the next.
Net Rentable Area
The gross building square footage minus the
elevotor core, flues, pipe shafts, verticol ducts,
balconies, and stairwell are os.
Occupied Square Feet
Building area not considered vacant.
Under Construction
Buildings which hove begun construction as
evidenced by site excavation or foundation work.
Direct Available Square Feet
Available Building Area which is either physicolly
vacant or occupied. Does not include sublease
space.
Total Availability Square Feet
Available Building Area which is either physically
vacant or occupied. Includes sublease space.
Direct Vacant Square Feet
Existing Building Area which is physically vacant
or immediately available. Does not include
sublease or shadow space.
Total Vacant Square Feet
Existing Building Area which is physically vacant
or immediately available. Includes sublease and
shadow space.
Normalization
Due to a reclassification of the morket, the base,
number and square footage of buildings of
previous quarters have been adjusted to match
the current base. Availability and Vacancy
figures far those buildings have been adjusted in
previous quarters.
For more information regarding the
MarketView, please contact:
Andrew Petkoff, Research
C8 Richard Ellis
4400 West 78'h St, Minneapolis
T. 952.924.4885 F. 952.831.8023
andrew.petkoff@cbre.com