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HomeMy WebLinkAbout11-21-19 CITY OF Meeting Location: FARMI NGTON Farmington City Hall 430 Third Street Farmington, MN 55024 ECONOMIC DEVELOPMENT AUTHORITY REGULAR MEETING AGENDA November 21, 2019 6:30 PM Hannah Simmons, Chair; Steve Wilson, Vice-Chair Katie Bernhjelm, Ryan Butterfield, Jake Cordes, Robyn Craig Geraldine Jolley 1. CALL TO ORDER 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL 4. APPROVE AGENDA 5. CITIZENS COMMENTS 6. CONSENT AGENDA (a) Approve Meeting Minutes (October 24, 2019, Regular Meeting) (b) Monthly Financial Statements 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS (a) Business Retention & Expansion Draft Program Plan (b) 2020 CDBG Allocation Recommendation (c) City Council Update 9. DIRECTOR'S REPORT (a) November Director's Report 10. ADJOURN CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 ..v O FarmingtonMN.gov TO: Economic Development Authority FROM: Cynthia Muller, Administrative Assistant SUBJECT: Approve Meeting Minutes (October 24, 2019, Regular Meeting) DATE: November 21, 2019 INTRODUCTION/DISCUSSION Please find attached the draft meeting minutes from the October 24, 2019, EDA meeting. ACTION REQUESTED Approve the October 24, 2019, EDA minutes. ATTACHMENTS: Type Description D Exhibit Minutes MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting October 24, 2019 1. CALL TO ORDER The meeting was called to order by Chair Simmons at 6:30 p.m. Members Present: Simmons, Butterfield, Cordes, Craig, Jolley, Wilson Members Absent: Bernhjelm Also Present: Adam Kienberger, Community Development Director; Lauren Siebenaler, Communications Specialist 2. PLEDGE OFALLEGL4NCE 3. ROLL CALL 4. APPROVE AGENDA Community Development Director Kienberger added 345 3rd Street Façade Grant Application under discussion items. MOTION by Wilson, second by Craig to approve the Agenda. APIF,MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Jolley, second by Craig to approve the Consent Agenda as follows: a) Approved Meeting Minutes (September 19, 2019, Regular Meeting) b) Received Monthly Financial Statements APIF,MOTION CARRIED. 7. PUBLIC HEARINGS 8. DISCUSSION ITEMS a) Business Retention &Expansion Communications Strategy Update This item is part of the ongoing discussion about business retention and expansion. Over the past months the EDA has discussed messaging, communications,what we currently do and how we communicate with businesses and residents. Communications Specialist Siebenaler spoke about the different ways the city communicates with residents and businesses. She explained changes to the website and what is available from the website and explained the different social media options available. There was a lengthy discussion regarding NextDoor as far as what it is, how to sign up, and how it works for businesses. Every new NextDoor does a favorite for your city. Blue Nose won for favorite coffee shop. The role of the EDA could be to facilitate some of the knowledge of NextDoor to businesses to make that connection. Prior to that, EDA Minutes(Regular) October 24,2019 Page 2 EDA members will join NextDoor and see how it works. There are 4,800 residents on NextDoor now and the amount of people seeing it continues to grow. Viewing of posts averages between 700 and 1,000. On Facebook the city has 4,100 likes. The 4,800 on NextDoor are verified Farmington residents. The 4,100 on Facebook,we don't know where they are from. On NextDoor you create a post and you gage how many people see it. On Facebook you get comments and likes. On NextDoor you get daily digest feeds and it continues to grow from there. On Facebook we promote ribbon cuttings for businesses. We have to be careful we are not favoring one business over another with specific events they may have. Everyone is very supportive of our ribbon cuttings and like to see new businesses in town. In addition, the business gets a spot in our Farmington Currents. The role of the Communications Specialist in the business retention and expansion plan will be determined as the plan is developed. Currently residents sign up for e-notifications through our website and messages are sent to their email. Receiving text messages is not available and an additional software would be required. There is a way to push messages out through our website app and staff can look into that further. Community Development Director Adam Kienberger and Community Development Specialist Kalley Swift recently attended a two-day business retention and expansion program at the U of M. It was very technical and has national accreditation for what a BR&E program can look like. Member Butterfield urged staff to keep in mind,the main goal of the EDA is to expand the tax base from businesses and keep those we have. Staff noted 80%of new projects in a community happen from within. So it is best to allocate a lot of resources internally rather than attraction pieces. Member Simmons asked staff to look at the EDA website pages. Staff noted the discussed changes have been made to the website. Community Development Director Kienberger developed a standardized questionnaire for business visits and asked for comments. Member Simmons would like to see added to outcomes an engagement of community and solutions. She had a discussion with a business that left and asked what drove them out of Farmington. They noted their lease price was too high. They would have liked a spreadsheet showing comparable buildings in Farmington so they could have argued the lease price is much higher so they are going elsewhere. So that type of engagement and partnership would be a good thing to have. She would like to take every opportunity we have to promote the work we are doing, because we consistently hear that the EDA and City Council are not doing anything. If we are making these visits and doing everything we can to get that picture we need to get the word out so we are demonstrating we are actively trying to do things. Member Craig noted if the building is privately owned,we can't control what they charge for the lease. Member Simmons stated that is why the spreadsheet of other lease prices would help. Staff stated we do have some of that information in EDA Minutes(Regular) October 24,2019 Page 3 our available spaces listings. Member Wilson was very uncomfortable with engagement from the city to market forces of what is going on. The city runs lean the way it is and he doesn't want to start prescribing that the city makes sure we are connecting all the dots. Businesses are going to come and go. We believe that as an authority we have some grand power over that and we don't. Member Butterfield agreed we don't, but as a charter of this organization business retention and expansion is something we need to have a pulse on and we need to drive programs and grants and incentives so that is not happening. Anything we can do to get the feedback and get in front of it so we know we are spending our discussion on the right things to incentivize that in the future,that is why he signed up. Member Wilson noted we are not a Chamber of Commerce and we are not a sales organization. Since the time he has joined,this has become a sales organization. Ultimately Member Cordes is on the School Board, he works with big financial activity with the school, Councilmembers Craig and Bernhjelm have activity on the City Council. Regarding the points of investment in time and energy to create favorable text calls, create favorable communication on how business can do well,would all be germane. He fundamentally disagreed that we are here once a month to be a marketing effort on behalf of the city when we have two extremely talented people who are interacting with businesses all day long. Member Simmons asked for other comments on the questionnaire. She appreciated the recent designations the city has received. Member Craig noted the City Council wants to be more assertive in promoting the good things that are happening in the city. There were no further comments on the questionnaire. b) EDA Program Financing Update Members wanted to get a feel for the EDA's finances before making policy decisions. All plans are based on operating dollars transferred from the City Council paid monthly. Other unrestricted revenue includes interest earned on investments of the fund balance. Restricted revenues include outside funding such as CDBG dollars, grants or other special funds. Additional revenue sources to the EDA include an HRA/EDA tax levy. The city has not historically used this. A year ago the decision was made to not transfer dollars to the EDA because we had a healthy fund balance and only small amounts were designated. Façade Grant Program—We allocate $20,000 to this program every year. The grant amounts have changed over the years. One thing we could do is lower the grant amount from $10,000 to $5,000, but put it back up to $10,000 for special categories, such as historical properties. There are 16 historic properties. Site Readiness Program—We allocate $20,000 to this program every year. Grants up to $5,000 are available for qualified commercial/industrial site preparation. This program was created in 2017 and has not been used. Commercial Rehabilitation Grant Program.—This is through the Dakota County CDA. The available amount is $39,000. There are a lot of restrictions with this EDA Minutes(Regular) October 24,2019 Page 4 program, but it can have a significant impact on a property. We have to make sure we have enough cash flow as these are reimbursement dollars. Open to Business—The city contributes $5,513 annually to support small and emerging businesses. The current contract runs through 2020. General Operations—We allocate $20,000 to cover legal, IT,professional development,programming expenses and the Open to Business fee. Other appropriations—The EDA earmarked$100,000 in mid-2018 for the creation of a Rambling River Center Plaza. This project has not been scheduled for implementation. Wish List—We have unfunded or yet to be created programs included in adopted plans. Such as the Highway 3 Corridor Plan,wayfinding improvements noted in the Downtown Redevelopment Plan,potential property acquisition to further either the Downtown Redevelopment or Highway 3 Corridor plan goals and other infrastructure improvements or cost participation necessary to remove barriers to redeveloping key properties. Member Butterfield asked if the funding in the EDA budget has to be allocated to a general program and cannot be allocated to any particular business. Staff noted that is correct. Member Simmons would like to learn more about cost participation necessary to remove barriers to redeveloping key properties. Is it a program or options we don't have in place that would have a bigger impact? It seems we are trying to balance things that can be done quickly and have visual effect for businesses, but also if things such as site readiness exist, we would like to learn more about what that would look like. Staff recommended the EDA craft a program that is general in nature and not site specific. So if you fall within this geographic boundary and meet this criteria, you are eligible for these funds. Member Cordes would like to learn more about SAC and WAC programs. Member Butterfield asked what is a meaningful program the EDA can put together that gets past the we want to pull in retail stores and is something that will be a large development effort with significant job opportunities to have the residents actually work in Farmington. With the lack of businesses that could expand, how do you get business in that would have 100 to 200 jobs to create a tax base and draw in new talent. What does that look like versus a façade grant program for small businesses? Staff stated TIF and tax abatement are the programs for that. Member Simmons stated for areas such as Highway 3 and downtown is the influence of code enforcement. It would help her to know what types of things would be resolved by proactive code enforcement on the appearance of a business. There are design guidelines for the Highway 3 Corridor Plan. Staff will be outlining that work at the November Planning Commission meeting. EDA Minutes(Regular) October 24,2019 Page 5 Staff noted we also have to have a reserve for known opportunity costs. Approximately$50,000 of the EDA's fund balance is uncommitted. The EDA will be receiving the $40,000 transfer in 2020 and 2021. Member Wilson noted we have one or two meaningful discussions with the City Council. We can be a strategic partner with the Council if we knew what their priorities were and how we can work together. Councilmember Craig agreed. At each meeting we try to give the EDA a little of what we are working on. Member Wilson would like the City Council, EDA and Planning Commission to get together once a year. c. City Council Update Councilmember Craig didn't have any additional information. Last time they discussed not raising the tax levy this year and utilized left over 2018 money to keep the tax levy the same. d. 345 Third Street Façade Grant Application Repairs to the Fletcher Building at 345 Third Street were discussed at the October 8 and 22, 2019, Planning Commission meetings. The item was continued to the January 2020 Planning Commission meeting. MOTION by Butterfield, second by Wilson to continue the facade grant application for 345 Third Street to the January 2020 EDA meeting. APIF,MOTION CARRIED. 9. DIRECTOR'S REPORT a) March Director's Report The owners of Homestead Community Church are in touch with us about purchasing the Riste lot. Our City Attorney is working on a Contract for Private Development with them. This will be brought back to an EDA meeting. The City Council /board and commission reception will be December 5 at 6:00 p.m. at Bourbon Butcher. It will include a summary of the work done by each group. Member Butterfield would like to review the work accomplished at the November EDA meeting. Member Wilson recalled one year we took city transportation and the EDA and City Council drove around town and discussed the various land owners and activity going on. It was super valuable. Maybe we could do that in April 2020. 10. ADJOURN MOTION by Cordes, second by Craig to adjourn at 8:18 p.m. APIF,MOTION CARRIED. Respectfully submitted, ClJ.vitlnia Muller Cynthia Muller Administrative Assistant CITY OF 043o Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-680o OFarmingtonMN.gov ___, .,. TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: Monthly Financial Statements DATE: November 21, 2019 INTRODUCTION/DISCUSSION Please find attached the monthly financial statements of the EDA. ACTION REQUESTED ATTACHMENTS: Type Description D Exhibit EDA-Actual Vs Budgeted Rev and Exp- November 2019 D Exhibit Financial Snapshot- November • a)0 ,T; O r O CO .4CO N " LC) CO N CO O N CON COO to M W 0 m N N N O co ----- �. O M M 03 v CO a) U c N) • m U CO Q 7 ❑ ..... 0 a O O O N- 0 0 0 0 0 0 0 O r N. 0 o 0 ti F- O O O O O O O O O O N N O r F• 0 C) M M CO O CO CO LC) 11, O O O O ' CF O pao V a o N N V' CO- N CO- r CO N r N a)m N in O 0 0 O Cb co N O) O O N LO 0 0 6) CO CO N. N ❑_ oo co M In M N. r N N. CO O N V st O r CA N. CA O O N CO O r r CO 00 N Lo N O O M N CO U Q N CC1 In r CO r N 6) PO N � N M O ❑ o 0 0 a O O O O O O O O O O O C) O O O O 0 O .a Q) O) 3 E a r V Q N 0 0 0 0 O O O O O O O O O O O O O O O 0 0 0 0 N_ s m CA E 7 r co 15 a O Q N Z 0 O O O oo O CO O N O O LID O O O V N N N- W C) M 1,-,, OON r N. M NNd 7Cn CO LO 7 NC7 NO U r ti V M M U QN O 0 N. O N . O "t C) N O O N O O O O rr . 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O cA H Q d a) W a) a) U. m o C7) a)1p co V N CO O O O LO N O O C) A2 y y Z • y m..O ••,t. moi' V V V V V d- V d , din La a) O m s 5 I— co co co CO co CO CO CO CO CO CO (.0 - F n I• N= O 5 2 ••,t. m Department Actual vs Budget-Generic Time Period Business Object Account Cumulative 12 Cumulative 12 ActualBudget Unit Account Description 2019 2019 2000-HRA/ECONOMIC DEVELOPME 1010 CASH 253,686.07 2000-HRA/ECONOMIC DEVELOPME 1010 CASH-LGA ASSMNT RELIEF 35,000.00 2000-HRA/ECONOMIC DEVELOPME 3510 UNRESERVED FUND BALANCE -299,361.64 2000-HRA/ECONOMIC DEVELOPME 4955 INTEREST ON INVESTMENTS -5,080.43 -2,300.00 2000-HRA/ECONOMIC DEVELOPME 5205 OPERATING TRANSFERS -41,666.60 -50,000.00 2000-HRA/ECONOMIC DEVELOPME 6401 PROFESSIONAL SERVICES 1,287.50 11,680.00 2000-HRA/ECONOMIC DEVELOPME 6403 LEGAL 853.00 4,000.00 2000-HRA/ECONOMIC DEVELOPME 6404 IT SERVICES 6,930.80 8,317.00 2000-HRA/ECONOMIC DEVELOPME 6422 ELECTRIC 171.67 300.00 2000-HRA/ECONOMIC DEVELOPME 6426 INSURANCE 118.90 130.00 2000-HRA/ECONOMIC DEVELOPME 6450 OUTSIDE PRINTING 0.00 500.00 2000-HRA/ECONOMIC DEVELOPME 6460 MEMBER DUES&LICENSURE 1,820.00 2,500.00 2000-HRA/ECONOMIC DEVELOPME 6470 TRAINING&SUBSISTANCE 2,871.67 3,000.00 2000-HRA/ECONOMIC DEVELOPME 6485 MILEAGE REIMBURSEMENT 265.06 1,000.00 2000-HRA/ECONOMIC DEVELOPME 6492 ADVERTISING 0.00 3,000.00 2000-HRA/ECONOMIC DEVELOPME 6550 DEVELOPER PAYMENTS 9,500.00 2000-HRA/ECONOMIC DEVELOPME 6570 PROGRAMMING EXPENSE 31,229.00 17,000.00 2000-HRA/ECONOMIC DEVELOPME 7310 OPERATING TRANSFERS 2,375.00 2,850.00, Total 2000-HRA/ECONOMIC DEVELOPM 0.00 1,977.00 0.00 1,977.00 0.00', 1,977.00 11/18/2019 3:07:17 PM Page 1 of 1 CITY OF 0430 Third St., Farmington, MN 55024 FARMINCTON © 651-280-6800 OFarmingtonMN.gov TO: Economic Development Authority FROM: Kalley Swift, Community Development Specialist SUBJECT: Business Retention & Expansion Draft Program Plan DATE: November 21, 2019 INTRODUCTION/DISCUSSION As discussed throughout the 2019 EDA meetings,there have been ongoing considerations for a renewal of a business retention and expansion (BR&E) program.To continue this discussion, staff was directed to bring forward a draft structure of a renewed BR&E framework which can evolve into a sustainable, active and long-term program.This draft structure is outlined below and includes various resources for review and consideration. As noted at the October 24, 2019 EDA meeting, Community Development Director Adam Kienberger and Community Development Specialist Kalley Swift attended a two day BR&E course at the University of Minnesota focused on retaining suburban businesses. It was technical in nature and has national accreditation for what a BR&E program can look like. Putting time, energy and resources into a renewed BR&E program which seeks connections with community businesses is a worthwhile effort at trying to expand the tax base and retain the businesses we have. BR&E strategies typically focus on two main components—data and relationships.This renewed program will formulate relationships between the city, EDA, Farmington businesses and the community while the business assessment survey will gather data to provide support for policy changes and program implementation. I n addition,the BR&E program will open lines for efficient and effective communication with local businesses which will allow the EDA to identify opportunities to enhance success, encourage expansion and create partnerships. The topic of renewing the BR&E program is directly related to the first objective listed within the EDA's 2019-2021 Strategic Plan (Pages 6-10). "Objective:Expand and Diversify the Tax Base. Tactics—1. Create and maintain strong relationships and lines of communication with local business to identify opportunities for the EDA to enhance success and encourage expansion. 2019 Action Plan—1. Create and conduct a comprehensive business needs/assessment survey." The EDA's 2019-2021 Strategic Plan is also based on the following Core Strategies which guide EDA actions (Page 6): "Encourage the retention and expansion of existing businesses" "Manage EDA programs and projects" Furthermore,the 2040 Comprehensive Plan contains eight(8) economic development goals.The EDA validated the importance of these goals for guiding actions of the EDA by ranking the importance of each within the 2019-2021 Strategic Plan (Pages 3-4).The second and third most important goals were: "2. Cultivation of strong relationships between existing businesses and the city to increase business retention." "3.A desirable commercial environment for residents is created through growth from existing and new businesses." Preparation for a Renewed BR&E Program Identification of Goals The first objective to identify is a list of attainable goals to focus on. Some goals could include: • Form, grow and strengthen relationships with the local business community • Understand our businesses,the business climate and how we can improve it • Show local businesses we care and will listen to their needs • Link businesses with knowledge and connections to potential resources to help solve existing problems • Fix local policies and ordinances which hinder business growth • Encourage businesses to grow and increase their ability to compete in the global economy • Gather and analyze data to validate existing strategic plan for economic development EDA Sub-Committee The second objective to identify is a dedicated group of 2-3 EDA members who will form an EDA sub- committee. Since EDA committee members are only required to commit to one meeting a month, it is suggested to form an EDA sub-committee in order to not add additional time commitments on EDA members if they cannot participate.This structure will allow for enough time, attention and detail to a renewed BR&E program without taking over the EDA agenda at each meeting. In addition,the intent of the EDA sub-committee is to allow this group of 2-3 EDA members to meet, discuss and direct actions for the BR&E program outside of normal EDA meetings without violating the open meeting law.The 2-3 member EDA sub-committee would not need to host a special public meeting or have their meeting publically noticed if they wanted to meet and discuss the renewed BR&E program.A copy of the open meeting law as discussed at the February 28, 2019 EDA meeting is attached for reference. Business Visitors Once an EDA sub-committee is established,the third objective to identify is a volunteer group of business visitors who want to improve business retention and expansion in Farmington.These business visitors will be the ones conducting the in-person visits with the businesses.The only obligation for these business visitors will be to attend a mandatory training before their first business visit and attend the in- person business visit(s).This group of volunteers will not regularly meet to discuss the BR&E program themselves-this type of action will fall onto the EDA sub-committee. It is suggested to gather business visitors from more than the pool of EDA members and city staff so businesses are more willing and less hesitant to participate. Additional business visitors can include members from the School Board, City Council, Planning Commission, Parks and Rec Commission, Rambling River Center Advisory Board, Water Board, MN/Dakota County Regional Chamber of Commerce, DEED, Dakota County Workforce Development Board and other recognized and respected community leaders. With an average of one business visit a month with 2-3 people at each visit,we will need an estimated 12-18 business visitors if each person can visit two businesses a year.The amount of business visitors needed will also depend on the availability and willingness of community businesses to participate. This multi-tiered approach will allow the EDA to increase efficiency as the top tier policy makers by consenting the EDA sub-committee to manage the renewed BR&E program.The bottom tier business visitors will attend trainings and participate in business visits.The middle tier EDA sub-committee will take the data and information gathered from the business visits and direct actions for short, medium and long term follow-up procedures.The top tier EDA committee will follow through on long term follow-up procedures such as new services, programs and products needed to address the opportunities and problems identified. Business Participation The fourth objective to identify is a list of community businesses the BR&E program hopes to connect with.This program is aimed at using convenience sampling of specific businesses to allow for strategic outreach rather than informal networking. Convenience sampling selects samples because they are convenient or interesting cases.This method may be appropriate for surveys conducted to organize communities, identify leaders or build networks.The renewed BR&E program aims for connections with key businesses such as second stage growth companies located within Farmington who currently have less than 100 employees at the Farmington location. A list of second stage growth companies in Farmington is attached. Other key businesses such as Farmington's top ten employers and specific businesses identified by the EDA sub-committee will be included as well. A list of top ten employers for Farmington is attached as well. I n addition,we are going to ask for participation from businesses who get ground breakings, ribbon cuttings and anniversary celebrations to gain knowledge of why these businesses have chosen to do business, continue business and expand their business in Farmington. Outreach and Contact with Businesses The fifth objective to identify is a successful outreach program to get businesses to say yes to our attempts of implementing a BR&E program with in-person visits. I n addition, successful BR&E visits require getting past gatekeepers so we can talk to high-up officials within these companies. Direct outreach can occur in many different ways. Attached is a sample letter from GreaterMSP which we can change to specify the goals of a long-term BR&E program. For those businesses who do not respond to a letter in the mail, a phone call or in person follow-up is suggested to ensure the participation and connection of as many targeted businesses as possible.Attached is a guideline for calling a business about BR&E efforts from GreaterMSP. Implementation of Business Visits and Business Needs Assessments Business Needs Assessment Survey Attached for reference is a Common Questions Survey Reporting Form from GreaterMSP and Connecting Businesses and Community Program Interview Guide from the University of Minnesota Extension. A business needs assessment survey specifically for Farmington is recommended to be crafted from these resources. Using these questions are suggested because they are thoroughly vetted,the questions have been used in accredited BR&E programs and the questions are not double-barreled,too vague,too precise or biased.To guarantee greater success and participation,the quantitative data questions can be sent out to businesses before their scheduled visit through an online survey tool such as SurveyMonkey.This would allow more time during the business visit to focus on identifying challenges and red flags. Red flags are something which might limit a business or lead it to closing, selling or leaving. I n addition to identifying red flags and challenges,the in-person business visit will be dedicated to building relationships, probing interesting survey results and having conversations on different EDA, city, county and state programs which may help their business.The data gathered from the business needs assessment survey will allow for longevity and long-term success of a BR&E program which will extend beyond the personal relationships formed during and after the in-person interviews. Business Visitor Training Before the business visitors can participate in any in-person business visit,they must attend a business visit training.The goal of this training is to set a level of formality which needs to be present during the business visit along with emphasizing that these visits are not informal networking sessions to be used for personal gain or as a social hour with the businesses. This pre-visit training will equip the business visitors with uniform training and strategies on how to present key questions and talking points such as City Council Adopted Priorities and recent designations the City of Farmington has been awarded. Training will also review the goals of the BR&E program and empower the business visitor with confidence to ask questions and retrieve the data we need. Business visitors will also be prepared with informative material to give businesses such as potential partnerships or collaborations for special projects and how businesses can increase engagement with the community. I n addition, before each visit the business visitors will be given background knowledge on the business they are visiting. Farmington's BR&E program should consider using a skip-it rule and confidentiality rule which is integrated and thoroughly vetted within the University of Minnesota Extension's business needs assessment(page ii-see attached). The skip-it rule allows businesses the opportunity to opt out of any question they may not want to answer.The confidentiality rule may increase business response rates as this rule may provide comfort to businesses worried about giving their perspective on the business climate in Farmington. I n addition,the confidentiality rule will also allow for unbiased data analysis by the EDA sub-committee.The confidentiality rule will not impede the ability to help businesses with specific issues and red flags identified if we include a release of data question as outlined in question 45 (page 17) of the University of Minnesota Extension survey(See Attachment). Post Business Visit Process:The purpose of a BR&E Program is to plan for something to happen. Follow-up:Short Term After each visit,thank you notes should be mailed immediately.This action will be developed by our Communication Specialist Lauren Siebenaler who spoke at the October 24, 2019 EDA meeting about different communications the city has with businesses and residents. Follow-up with businesses will also be expected in response to needs and red flags identified during the business visit. Information and applications for potential city, county and state programs which may aid these businesses should also be addressed immediately.These programs include the Downtown Facade Improvement Grant, Commercial Rehabilitation Grant, Redevelopment Incentive Grant(RIG),various DEED financing programs, etc. Even if these businesses do not apply for various programs immediately, they will have the information necessary to strategically plan out when programs may best aid their business and give them comfort in knowing there are potential resources out there if businesses may need it. Follow-up: Medium Term A Business Spotlight on a social media platform and/or the Farmington Currents for businesses who participate and are interested should be offered.This action will also be coordinated by our Communication Specialist Lauren Siebenaler. This follow-up tactic is directly related to the fourth objective listed within the EDA's 2019-2021 Strategic Plan (Page 13). "Objective:Effectively communicate information about the EDA within city government, to the community and to people and businesses outside of Farmington Tactics—3. Make use of the newsletter and other ongoing city communications to provide information about the EDA. 2019 Action Plan—5. Develop a social media strategy to promote the work of the EDA." Offering a Business Spotlight gives a two way benefit.The participating businesses get a short blurb on who they are,where they are located and what goods and services they provide. This can drive more traffic to these businesses if people see a business offering services they need and did not know are in Farmington. The city and EDA also get a platform to promote the BR&E program,the program's and EDA's goals and encourage other businesses to participate in our BR&E procedure. In addition, each business who participates could also receive something to put on their store front which reads, "I participated in Farmington's BR&E Program!"This will increase visibility of the program and encourage other businesses around them to participate. Follow-up: Long Term Once there has been adequate business participation,the data gathered can be used as support for different efforts and projects along with adding services, programs and products needed to address the opportunities and problems identified during the business visit process. Once enough businesses participate,we can send out localized fact sheets so each business can see how their data responses compares to the whole.This type of fact sheet won't be statistically valid until we reach 30-40 business participants. Attached are the long term follow-up packets the City of Vadnais Heights and City of Hugo sent out to their participating businesses. Their long term follow-up packets included information on businesses, managerial skills,sales and marketing, computer skills,general skills and manufacturing information. How the EDA and EDA sub-committee responds to business participation of a BR&E program will be a testimonial to validate what the EDA does to benefit the economic vitality of Farmington and the community as a whole.This testimonial will occur by helping businesses identify solutions to their acknowledged challenges and red flags (short term), presenting businesses with a Business Spotlight to show we care about their business (medium term), and creating new programs which will address challenges businesses face(long term). Data Analysis SWOT Data analysis from the business needs assessment will allow for validation or renewed identification of Farmington's strengths,weaknesses, opportunities and threats (SWOT).This will lead us to answer questions like: What are the strengths and opportunities which bring and keep businesses here in Farmington? How can we take these strengths and opportunities to brand Farmington as a great place to start, expand and do business here?What are the weaknesses and threats which may lead to vacant buildings and businesses not interested in coming to Farmington? How can we limit these weaknesses and threats through different programs and incentives?Attached is the memorandum of key observations with some identified SWOT made from ULI Minnesota who conducted a Navigating Your Competitive Future Workshop in 2017. Quantitative Data Graphing Quantitative data requires adequate evaluation in order to craft an actionable response to key issues. One way the University of Minnesota does this is by graphing responses to satisfaction and importance of community factors on an x,y axis.This allows for identification of celebration items (high satisfaction/high importance) and action items (low satisfaction/high importance)to focus on.Attached are the community factor questions (pages 10-13) in the University of Minnesota Extension's business needs assessment survey along with an example of what a data response graph may look like. Ripple Map A ripple map should also be crafted from defined BR&E program goals to visually track progress as it is made. With unforeseen time and resource limitations from businesses and business visitors,tracking progress of key milestones will validate why a BR&E program is being renewed.An example of a ripple map from East Bethel's BR&E program is attached for reference and a larger version will be available at the EDA meeting. Future EDA Actions Forming relationships, gathering data and identifying key issues within Farmington will allow the EDA to increase their efficiency by designing new goals, programs and incentives.The EDA will also be able to better identify attainable goals and objectives within future strategic plans. A successful BR&E program will provide a testimonial for years to come as to why the work the EDA does matters and is an important and integral part of improving the economic vitality of the Farmington community. ACTION REQUESTED Discuss the preferred components within the BR&E Draft Program Plan and provide staff with desired changes along with direction on implementation. ATTACHMENTS: Type Description ❑ Exhibit 2019-2021 Strategic Plan for Economic Development ❑ Exhibit BR&E Activities Matrix ❑ Exhibit Open Meeting Law ❑ Exhibit Farmington's Second Stage Growth Companies ❑ Exhibit Farmington's Top Ten Employers ❑ Exhibit GreaterMSP Sample Outreach Letter ❑ Exhibit GreaterMSP Calling Businesses Guidelines ❑ Exhibit GreaterMSP Common Questions Survey Reporting Form University of Minnesota Extension Connecting ❑ Exhibit Businesses and Community Program Interview Guide • Exhibit City of Hugo BR&E Summary Report ❑ Exhibit City of Vadnais Heights BR&E Summary Report ❑ Exhibit ULI MN Navigating Your Competitive Future Workshop ❑ Exhibit University of Minnesota Extension Quantitative Data Graph ❑ Exhibit East Bethel Ripple Map Strategic Plan 2019 - 2021 Farmington Economic Development Authority n ,� fit` ,. . , c$ .a �s `.freti dor 1. -. - '. .r '�,s". ---. °}mne .,u 11,E r Yom'� "o . .'`+.,,,�. cfi f - -t'1.' '5. �r January 2019 NORTHLAND .....„F,' PUBLIC FINANCE EDA Strategic Plan 2019-2021 CONTENTS Contents 1 Introduction 2 Context 3 EDA Powers 3 Comprehensive Plan 3 City Government 4 EDA Resources 5 Strategic Plan 6 Objective: Expand and Diversify the Tax Base 6 Objective: Encourage development that brings additional goods and services to Farmington 11 Objective: Promote the economic and physical health of older sections of Farmington....12 Objective: Effectively communicate information about the EDA within City government,to the community and to people and businesses outside of Farmington. 13 Objective: Conduct the business of the EDA to maximize its effectiveness 14 January 2019 EDA Strategic Plan 2019-2021 2 INTRODUCTION This document presents the Strategic Plan for the Economic Development Authority(EDA) of the City of Farmington.The EDA Strategic Plan serves several purposes: • The plan articulates the vision,mission and fundamental principles that guide decision making and actions for the EDA. • The plan provides a framework for identifying potential roles for the EDA,prioritizing use of resources and periodically reviewing actions taken by the EDA. • The plan serves as a tool for communicating information about the EDA to the city council,city departments and advisory boards,partner organizations in the economic development community and Farmington residents and businesses. The Strategic Plan focuses on the years 2019 through 2021. Vision Statement The Economic Development Authority's vision is to improve the economic vitality of the City of Farmington and to enhance the overall quality of life by attracting and retaining businesses, creating partnerships,fostering employment opportunities, promoting workforce housing, business growth, and expanding the tax base through development and redevelopment. Mission Statement Farmington is commerce friendly, responsive, and innovative in the realm of economic development. The Economic Development Authority's mission is to position Farmington as one of Minnesota's most desirable cities to open, grow, and maintain a business. January 2019 EDA Strategic Plan 2019-2021 3 CONTEXT The actions of the EDA do not occur in a vacuum,but within the context of city government and development forces that affect Farmington and the region. Understanding this context is an important element of creating and implementing the strategic plan. EDA Powers The powers of the EDA come from both State Law and city enabling resolution.The EDA can exercise the powers set forth in Minnesota Statutes,Section 469.090 through 469.108 unless otherwise limited by the city council.The Farmington EDA was established by Resolution R104- 05 (the"Enabling Resolution").The Enabling Resolution empowers the EDA to use all statutory authority with the following exceptions: • The sale of all bonds or other obligations issued by the EDA shall first be approved by the city council. • The EDA shall follow the budget process for city departments as may be provided by the city and as implemented by the city council and Administrator. • All official actions of the EDA shall be consistent with the city comprehensive plan and official controls implementing the comprehensive plan. The Enabling Resolution also transferred all activities,programs,operations and authority relating to economic development from the Farmington Housing and Redevelopment Authority (HRA).The EDA is authorized to exercise all of the powers granted to the HRA pursuant to Minnesota Statutes,Sections 469.001 through 469.047. No actions contemplated by the Strategic Plan are impaired by the limitations of State Law or the Enabling Resolution. Comprehensive Plan The Economic Development chapter of the 2040 Comprehensive Plan provides a framework of the activities of the EDA. "The Economic Development Plan (Chapter 9 of the Comprehensive Plan)provides a high level and long- term roadmap for the City of Farmington and its partners (public,private, and nonprofit sectors) to work together to enhance employment, investment and quality of life opportunities that benefit the entire community. The city recognizes that local government has a responsibility for creating an environment in which economic development can occur. This plan also serves to examine and strengthen the city's ability to compete effectively and prosper in both the regional and increasingly global economy." The Comprehensive Plan contains eight(8)economic development goals.As part of the process of creating this Strategic Plan,the EDA validated the importance of these goals for guiding the actions of the EDA.The following list contains the economic development goals in order of the ranking of the EDA Board: January 2019 EDA Strategic Plan 2019-2021 4 1. A three-year Strategic Plan for Economic Development that provides a dynamic and actionable tool for achieving the community's economic development vision. 2. Cultivation of strong relationships between existing businesses and the city to increase business retention. 3. A desirable commercial environment for residents is created through growth from existing and new businesses. 4. Healthy and diversified growth of existing and new businesses to achieve the community's 2030 and 2040 employment projections. 5. Redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas. 6. Public and private sector reinvestment in downtown to revitalize it as the community's commercial,cultural,and recreational center. 7. Diverse housing options and quality of life amenities that support the needs and preferences of the community's workforce into the future. 8. A well-trained and adaptable workforce is maintained within the community to support the projected business and job growth. These goals provide a useful tool for evaluating EDA activities.How does the activity help to achieve the goals of the Comprehensive Plan?A consistent connection between these goals and EDA activities ensures that the EDA meets its mandate of consistency with the Comprehensive Plan. City Government An essential factor shaping the Strategic Plan is the EDA's fit within the overall structure of the city. The EDA is one of five advisory boards and commissions established by the city council. The EDA is different from any other board in that it has the power and resources to undertake projects in a relatively autonomous manner.State Law designates EDAs as political subdivisions. Farmington Community Community City Council City Development Administrator Director Residents Business Economic : Development Authority(EDA) The EDA is governed by a 7-member board of commissioners appointed by the city council. Members of the EDA board consist of two city council members,one Independent School District 192 school board member,and four residents.Economic development staff is part of the January 2019 EDA Strategic Plan 2019-2021 5 city's Community Development Department.The Community Development Director serves as the Executive Director of the EDA. This structure combines the dedicated focus on economic development and statutory powers of the EDA with a day-to-day foundation in the core structure of the city. EDA Resources Creating and implementing the Strategic Plan must be done with an eye towards the resources of the EDA.With limited resources,the effective use of resources should be a factor in evaluating current and future activities. Do the potential benefits of the action merit the allocations of EDA resources? The most important resource of the EDA is city staff.The experience and technical skills of economic and community development staff provide the capacity to successfully achieve EDA objectives.The staff resource available to the EDA is a finite commodity. It is also a commodity that serves other functions within city government. January 2019 EDA Strategic Plan 2019-2021 6 STRATEGIC PLAN The EDA Strategic Plan is based on the following Core Strategies: • Attract new businesses that provide jobs,needed goods and services,and tax base • Encourage the retention and expansion of existing business • Encourage revitalization and redevelopment • Manage EDA programs and projects • Be the voice of economic development in city government The Core Strategies guide EDA actions.All actions shall be consistent with one or more of the Strategies. Objective: Expand and Diversify the Tax Base Economic development is not an end itself,but rather a means to achieve certain outcomes.An important outcome in Farmington is to grow the property tax base.Preliminary tax rates for taxes payable 2019 show Farmington with the fifth highest city tax rate for Dakota County cities (over 1,000 population).When all other taxing jurisdictions are included,the total tax rate in Farmington is the highest in Dakota County. Preliminary 2019 Tax Rates 160.00 140.00 120.00 — a,w 100.00 — — °� 80.00 — — I- 60.00 } 40.00 — 20.00 4.) co� �aoXoJck a\e:\ - ?).(\Qa . ; rwe �ek� �eeg \ea <2:.`1 PeFa c3k 4\e ■City Rate •All Others Rate Figure 1 Tax base is a key factor in a higher tax rate.A lower tax base means that the city must tax at a higher rate to generate revenue needed to operate the city.A comparison with other Dakota County cities provides some perspective on Farmington's tax base.Figure 2 shows total Pay January 2019 EDA Strategic Plan 2019-2021 7 2019 Taxable Market Value by property classification. Figure 3 compares the distribution of Taxable Market Value among the property classifications. Taxable Market Value Taxes Payable 2019 8,000,000,000 7,000,000,000 a 6,000,000,000 ■All Other 5,000,000,000 •Agriculture 4,000,000,000 Industrial 3,000,000,000 •Commercial 2,000,000,0001111 m Apartments 1,000,000,000 1.711 ■Residential Farmington Lakeville Rosemount Hastings Apple Valley Figure 2 Taxable Market Value Taxes Payable 2019 100°/O 90% ■ ■ 80% U U 70% t All Other 60% ■ ■ ■ ■ ■Agriculture 50% 1111 ■ ■ Industrial 40% ■ ■ 111 1111 ■Commercial 30% ■ ■ ■ ■ •Apartments 20% ■ ■ • ■ •Residential 10% ■ ■ ■ ■ 0% Farmington Lakeville Rosemount Hastings Apple Valley Figure 3 January 2019 EDA Strategic Plan 2019-2021 8 • Hastings has less Taxable Value than Farmington($1.52 billion to$1.74 billion). However,the portion of the total tax base in commercial and industrial property is more than double in Hastings(11%)in comparison to Farmington(5%). • The commercial/industrial share of the tax base in the comparison cities ranges from 9.66% in Apple Valley to 11.24% in Rosemount. • Rosemount provides a good contrast to Farmington.The cities have similar populations (Farmington 22,421 -Rosemount 23,956),but Farmington has 29% less tax base.Total Taxable Market Value per capita in Farmington is$87,866 and$116,100 in Rosemount. Growing and diversifying the tax base has a variety of benefits.A growing tax base gives the city more flexibility in funding services and capital improvements.This flexibility would likely extend to the EDA budget.The demands for operating revenues may limit the ability to lower the tax rate,but a growing tax base lessens the need to raise rates. Growing the tax base is one of the only means available to the city to promote reductions in other parts of the total tax rate. A diversified tax base changes the impacts of economic downturns as value changes vary among property types. Commercial and industrial development make different use of city services than residential with the potential for comparably less pressure to increase services and spending. EDA efforts to grow the tax base must be done thoughtfully and strategically.The Minnesota property tax system affects the ability of the city to realize growth in the tax base from new development.40% of all new commercial-industrial value goes into the Fiscal Disparities Pool and is not available for local taxation.The use of tax increment financing(TIF)or tax abatement defers the benefits of new tax base until the financial assistance ends.Property class rates set by the Legislature convert the Assessor's Estimated Market Value to Tax Capacity(taxable)value at different rates. Figure 4 illustrates these points.This chart compares the Tax Capacity value available to the city (and other taxing jurisdictions)from alternative development of 100 acres. January 2019 EDA Strategic Plan 2019-2021 9 Tax Capacity From Alternative Land Uses Industrial Retail Single Townhome Acres 100 100 100 100 Lot Coverage/Density 30% 30% 3 6 Development(SF or Units) 1,306,800 1,306,800 300 600 EMV per SF or Unit 65 125 330,000 330,000 EMV 84,942,000 163,350,000 99,000,000 198,000,000 Tax Capacity 1,698,090 3,266,250 990,000 1,980,000 Fiscal Disparities 40% 40% 0% 0% Net Local Tax Capacity 1,018,854 1,959,750 990,000 1,980,000 2,500,000 2,000,000 1,500,000 co 1,000,000 I- 500,000 0 Industrial Retail Single Townhome Figure 4 Expansion of the tax base also comes from within.The Economic Development chapter of the Comprehensive Plan notes that"research from numerous sources shows that existing businesses create 60%-90% of all new economic growth in a community".A focus on local businesses is a more efficient means of expanding the tax base. Resources applied to business expansion are more likely to yield returns than using the same resources to compete with other cities. Resources are applied to businesses already in Farmington rather than competing with January 2019 -� EDA Strategic Plan 2019-2021 10 other cities.The use of financial incentives (if needed)is typically lower and more closely aligned with project need. Tactics 1. Create and maintain strong relationships and lines of communication with local business to identify opportunities for the EDA to enhance success and encourage expansion. 2. Be prepared to receive and effectively respond to inquiries about locating businesses in Farmington. 3. Make use of tax increment financing and tax abatement,pursuant to city policies,to achieve the objectives of the Strategic Plan. 4. Use tax increment financing and tax abatement only when the benefits received from the development outweigh the deferred tax base. 2019 Action Plan 1. Create and conduct a comprehensive business needs/assessment survey. 2. Review and update(as needed)economic development promotional materials. January 2019 EDA Strategic Plan 2019-2021 11 Objective: Encourage development that brings additional goods and services to Farmington Building and maintaining a strong core of commercial development is important to Farmington. When necessary goods and services are not available locally,residents travel to other cities to shop.These trips often result in additional shopping that could have occurred in Farmington. The EDA seeks to encourage commercial development that reduces this out-migration and complements existing businesses. The EDA has limited control over the type and pace of commercial development. Market forces tend to be the primary force in commercial growth. In that regard,commercial development and job growth are directly related.New,well-paying jobs located in Farmington may produce the demand for new housing.These new"rooftops" create the market sought by commercial development. The EDA can facilitate commercial development by providing desirable business districts. Farmington has a history of creating community plans for such business districts.Plans for Vermillion River Crossing and Downtown Farmington provide the framework for public and private investment. In 2019,the city will be completing a plan for development in the Highway 3 Corridor.The ongoing implementation of these plans is an important EDA objective. Tactics 1. Attract new businesses that produce jobs that are likely to create or retain households and expand the local market for new commercial development. 2. Prepare and implement plans that provide desirable locations for new commercial development. 2019 Action Plan 1. Continue to work with brokers and land owners to attract developments to Vermillion River Crossings area. 2. Create ongoing means of communicating actions related to the implementation of the Downtown Redevelopment Plan to the EDA. 3. Play an active role in the completion of the Highway 3 Corridor Study and seek effective implementation strategies. January 2019 EDA Strategic Plan 2019-2021 12 Objective: Promote the economic and physical health of older sections of Farmington. One of the Economic Development Goals of the Comprehensive Plan is"redevelopment of vacant and underutilized properties in older areas to revitalize these vital community areas". In reality,there are two aspects to redevelopment. The most effective strategy is to promote the economic and physical health of the community to avoid the need for redevelopment. If the need for redevelopment exists,however,it is important to prevent blighting conditions to spread to other properties. The EDA has taken a proactive approach to redevelopment by creating plans for the Downtown and the Highway 3 Corridor.These plans provide a framework for public and private investment.Implementation of these plans is not the sole responsibility of the EDA.The EDA must coordinate its efforts with the city council,planning commission and other stakeholders. Tactics 1. Engage on a consistent basis with the planning commission to share goals and develop strategies. 2. Support the outcomes and implementation of the Highway 3 Corridor Plan. 3. Review and promote existing programs that target key areas. 2019 Action Plan 1. Schedule quarterly joint work sessions with the planning commission and semi-annual work sessions with the city council to align priorities. 2. Complete and identify initial implementation steps of the Highway 3 Corridor Plan. 3. Meet with Dakota County CDA staff(or invite to EDA meeting)to discuss programs. January 2019 EDA Strategic Plan 2019-2021 13 Objective: Effectively communicate information about the EDA within city government, to the community and to people and businesses outside of Farmington. Communication is an essential function of the EDA.Communication with the city council promotes collaboration on shared objectives and builds the foundation for the financial resources required by the EDA. Communication with the community explains the work of the EDA,highlights the positive impact on the community and offsets potential misinformation. Communication informs the business community,both within and outside of the community, about the opportunities to do business in Farmington and the assistance available from the EDA. The city's website is the most important communication tool for the EDA.The website is the place people look for information about the EDA.Farmington's online presence for economic development should be guided by several factors: • Information about the EDA and economic development in Farmington must be easy to find on the website. • The information on the website must be useful. • The form and content of the pages devoted to economic development should convey a positive message that creates interest in Farmington. Tactics 1. Utilize the city's website as the primary point of information about the EDA and economic development in Farmington. 2. Ensure that the website contains useful information for businesses evaluating potential development in Farmington. 3. Make use of the newsletter and other ongoing city communications to provide information about the EDA. 2019 Action Plan 1. Review other websites to identify elements that could be incorporated into Farmington's website. 2. Review and enhance the city's webpage(s) related to Economic Development. 3. Develop one or more new communications tools to relay the messages and work of the EDA. 4. Shift the monthly"Director's Report" in the EDA packet to a more public-facing newsletter. 5. Develop a social media strategy to promote the work of the EDA. January 2019 ��� EDA Strategic Plan 2019-2021 14 Objective: Conduct the business of the EDA to maximize its effectiveness. While this objective seems obvious,it is important to make it a stated objective of the Strategic Plan.The EDA operates with limited resources in terms of funding,staff time and board responsibilities.All decision-making must consider the effective use of these limited resources. Tactics 1. Provide consistent information to the EDA about its financial condition and existing obligations. 2. Provide the EDA with consistent updates on the status of the action plans for the Strategic Plan and other ongoing initiatives of the EDA. 3. Annually update the action plans in the Strategic Plan. 2019 Action Plan 1. Provide annual comprehensive review of the EDA's finances in March. 2. Develop a standardized template for providing specific project updates. 3. Explore ways to enhance the effectiveness of monthly board meetings. 4. Create a process to annually review and update action plans in the Strategic Plan. January 2019 ��� Farmington EDA Business Retention and Expansion Strategy Summary Category Activity Audience and Frequency Relationship Farmington Business Association(FBA)morning networking meetings Farmington businesses-Monthly Ribbon cuttings for new or expanding businesses Farmington businesses-5-10/year Dakota County Regional(DCR)Chamber of Commerce events(Good Day Dakota Dakota County-wide businesses-Monthly County,Legislative Updates etc.) Economic Development Association of Minnesota(EDAM)events Economic development professionals from across the state- Monthly Minnesota Commercial Association of Real Estate Association(MNCAR) Commercial property brokers-Weekly membership and event participation(MNCAR Expo) Miscellaneous business inquiries,start-ups,existing business questions etc. Farmington businesses-Weekly Partnership Dakota County Community Development Agency(CDA)-Open to Business, Dakota County Community Development Directors and CDA Broadband,CDBG programs staff-Bi-monthly MN Department of Employment and Economic Development(DEED)MN Marketing Public and private sector economic development Partners professionals from around the state including state officials- 3x per year Private sector economic development collaborations(Dakota Electric,Xcel Energy) Private sector economic development partners-As needed DCR Chamber of Commerce programs and collaborations(State of the City, Annually(SOTC)and monthly update meetings with DCR monthly update meetings,Chamber Directory) Chamber leadership GreaterMSP site selection responses GreaterMSP staff and national site selectors-As needed Data Dakota/Scott Workforce Development Board updates Monthly DEED employment data and industry trends Monthly GreaterMSP dashboard and on demand data requests As needed Informational EDAM Third Thursday programs and EDAM University educational series Monthly Minnesota Real Estate Journal(MREJ)educational development events Quarterly Business highlights and updates in the Farmington"Currents"newsletter Quarterly Local and regional news stories and updates Daily Vila 4iACity of Farmington 430 Third Street Farmington,Minnesota 43,-.4 651.280.6800•Fax 651.280.6899 '"o° www.cifarmington.mn.us DATE: February 14, 2019 TO: Farmington Boards and Commissions FROM: David J. McKnight, City Administrator 01 CC: Farmington City Council SUBJECT: Open Meeting Law Please let me take a minute to thank all of our board and commission members for dedicating your time to serve our community. The city council values your input and appreciates the time and effort each of you put into your specific group. Thank you on behalf of our entire community for helping make it a great place to live. Open Meeting Law The open meeting law requires that meetings of public bodies must generally be open to the public. The law serves three vital purposes: 1. Prohibits actions from being taken at a secret meeting where the interested public cannot be fully informed on the decisions of public bodies or detect improper influences. 2. Ensure the public's right to be informed. 3. Gives the public an opportunity to present its views. The open meeting applies not only to the city council, but also to each of our boards and commissions as well. While the work of ensuring that meeting dates, times and locations are made public in a timely fashion falls upon city staff, it is important for each of you as board or commission members to remember the following items in regards to the open meeting law. ✓ Please avoid gathering in a quorum of board/commission members outside of the regular meeting. On the chance that a quorum is present at a social gathering, please do not discuss city business. V While there are exceptions to the open meeting law, these small number of exceptions typically pertain to the city council meeting in a closed session on a very small number of topics. ✓ Avoid having a serial meeting by telephone, email, texts or social media. A serial meeting example is when one member contacts a second member and shares how a third or fourth member feels on a topic. Avoid these types of pitfalls and have these discussions as a part of the regular public meeting. ✓ There are legal penalties for those who intentionally violate the open meeting law. A civil penalty of$300 for a single occurrence is the first penalty and the public body may not pay the penalty. A number of years ago I attended a legal training on this issue that is encompassed below- The most basic summary of this sometime complicated law is to conduct city business at the meetings, call city staff with any questions you have or assistance you need and when the meeting is over, go home. If you have questions or need additional information, please let me know. 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Y >- u o 4- ca N Y ` E O (--) O_ Q- N +�+ Y C + w c co ca co + a) w LL LL _ 0 H G > 0 5 Y (Date) Company Name Attn: Address City, State Zip code Dear(name): The City of(name of city) has selected (company name) as a company we would like to learn more about as part of our Business Retention & Expansion efforts. I would enjoy the opportunity to meet with you and your team to discuss a variety of topics ranging from general business climate, employment,future investment plans, community initiatives and other topics that are of importance to you and your company. I will be contacting you in the next week to schedule a half hour visit. Your feedback is valuable in helping the City and Region better serve the business community. We hope you will assist our efforts by participating in a short interactive discussion. Hearing from businesses in the community is key to successful business retention efforts. If you have any questions or would like to connect sooner, please contact me at (phone#) or (email). Thank you for all you do to ensure business and people prosper in the Greater MSP Region. Sincerely, Name Title GREATER MSPTM Minneapolis Saint Paul Regional Economic Development Partnership Guideline to Phoning a Business Leader: I'm.( name 2 from(identify your organization). I'm calling today on behalf of(insert organization name) business retention program. In our work continue to make our City/County/Region a better place for businesses, we would like to obtain your input. I'd like to schedule a short 30-minute meeting with you to ask you a few questions to learn about your business and most importantly listen to your views and opinions about the local business climate. I would also be happy to tell you about programs and resources that could be helpful to your bottom line if the opportunity arises. How does your calendar look on (suggest a day and time)? If this is not good,what is a convenient day and time for you? Some tips for success • Keep the phone conversation as short as possible; the goal of the phone call is to secure an appointment. Once this has been accomplished,thank the business owner and end the call. If the business does not want to schedule an on-site visit, ask the company if they have 10-15 minutes to talk via phone. • Use active listening skills to determine if your pitch is working. If the"we want to hear your views and opinions"pitch doesn't work, use the"we want to tell you about available programs and resources" angle. If this doesn't work, use the "we want to learn how you've been so successful." • Also mention that other business leaders in the Region have found this meeting to be a valuable use of their time. • Never use the word"survey" in the phone conversation. Use"meeting" or "conversation" instead. • If you leave a voicemail,try to follow up with an email referencing your voicemail. Common Questions Survey Reporting Form (rev 1.12.16) COMPANY INFORMATION Company Name: Contact Name/Email: Visit Date: Would you be willing to participate in the MN Manufacturers week? YES NO BUSINESS AND FACILITY DETAILS: Primary Business Sector? Type of facility(select all that apply): ❑ Branch ❑ Distribution ❑ Franchise ❑ Headquarters ❑ Home-based ❑ Manufacturing ❑ R&D ❑ Sales-Office Is this facility owned or leased? Owned Leased Does company have a succession plan? YES NO Has the company ownership changed? YES NO Or is change imminent? YES NO Explain: Over the past year, have company sales(select one): ❑ Increased ❑ Decreased ❑ Been relatively stable ❑ Fluctuated widely ❑ Not identified What has contributed to the increase or decrease in sales? PRODUCTS AND SERVICES What are the company's major products and services? Has this company introduced new products? YES NO Briefly describe new products: EMPLOYMENT AND WORKFORCE How many full time employees are at this facility? Has the number of employees at this facility changed in the past year(select one): ❑ Increased ❑ Decreased ❑ Stayed the same If increased, how many employees have been hired in the past year? 1I Page_ In the next year,do you expect the number of jobs at facility to(select one): ❑ Increase ❑ Decrease ❑ Be relatively stable ❑ Unsure Do you plan to hire in the next 2-5 years? YES NO If yes, how many employees do you anticipate hiring? What types of jobs are you hiring? If you have hired in the past year,was it hard to fill positions? YES NO What contributed to the challenges in filling open positions?(select all that apply): ❑ Poor work ethic❑ Lack of basic education❑ Lack of technical skills❑ Lack of candidates ❑ Challenging location❑ Competition ❑ Other Do you anticipate needing to train existing employees: YES NO What type of training is needed? Does the community have enough housing and the right type of housing for your future employees?YES NO MARKET INFORMATION Company's primary market(select one): ❑ International ❑ United States ❑ Midwest(including MN) ❑ Minnesota ❑ Local Company's fastest growing geographic market(select one): ❑ International ❑ United States ❑ Midwest(including MN)❑ Minnesota ❑ Local ❑ Not identified Do you export or have clients outside of the United States? YES NO If so,where(select all that apply): ❑ Africa&Middle East ❑ Canada ❑ Europe&Russia ❑ Greater China ❑ India, Pakistan, Central/South Asia ❑ Japan&Korea ❑ Southeast Asia ❑ Australia&Pacific Oceania ❑ Latin America&Caribbean ❑ Mexico ❑ Other Percent of sales outside of the US? Are you interested in exporting or learning how to obtain clients outside of the U.S.(exporting)? ❑ Yes ❑ No Wage INVESTMENT PLAN Does the company plan to(check all that apply) ❑ Invest in new facilities ❑ Make major equipment purchase ❑ Renovate/Expand current facilities ❑ None Approximate date of investment(select one): ❑ Within one year ❑ Within two years ❑ Within three years ❑ Unsure Do you currently have room on your site to expand? YES NO If investing in new location,why(select all that apply)? ❑ Access to labor❑ Access to markets❑ Environmental permit obstacles❑ High state taxes❑ High local taxes ❑ Labor costs ❑ Lease expiration ❑ No room at this location❑Quality of workforce ❑Transportation/infrastructure ❑ Other COMMUNITY What are the strengths and weaknesses of the community? Have you interacted with any of the departments at City Hall?If so,what department and please describe your experience. Are there any priority projects or initiatives the City should consider in order to enhance the business climate? POST DISCUSSION VISIT Does this company require follow up? YES NO If yes,what organization(s)should assist(select all that apply): ❑ City ❑ Chamber ❑ College ❑ State ❑ Workforce ❑ GREATER MSP ❑ Other NOTES: 3 lPage Rank the local business climate:Community Rankings:1=Poor 5=Great Education and Training K-12 1 2 3 4 5 n/a Higher education 1 2 3 4 5 n/a Customized Training Programs 1 2 3 4 5 n/a Overall Workforce Quality 1 2 3 4 5 n/a Transportation/Location Public Transportation 1 2 3 4 5 n/a Highway Infrastructure 1 2 3 4 5 n/a Air Service 1 2 3 4 5 n/a Proximity to Suppliers 1 2 3 4 5 n/a Quality of Life Recreational Opportunities 1 2 3 4 5 n/a Cultural Opportunities 1 2 3 4 5 n/a Crime Rate 1 2 3 4 5 n/a Social Organizations and Networks 1 2 3 4 5 n/a Housing Supply for Workforce 1 2 3 4 5 n/a Local Access to Capital Lending by local financial institutions 1 2 3 4 5 n/a Assistance from local governments and/or non-profits 1 2 3 4 5 n/a Local Government Attitude towards business 1 2 3 4 5 n/a Permitting/Zoning 1 2 3 4 5 n/a Local Taxes 1 2 3 4 5 n/a Local fees 1 2 3 4 5 n/a Utilities Telecommunications/Broadband Service 1 2 3 4 5 n/a Telecommunications/Broadband Rates 1 2 3 4 5 n/a Electric Rates 1 2 3 4 5 n/a Electric Reliability 1 2 3 4 5 n/a __4IPage i• <City or County Name Here> CONNECTING BUSINESSES AND COMMUNITY PROGRAM Interview Guide For staff only: Business ID: Also record on pages 1&4 of survey BUSINESS NAME: Address: City State Zip Code Phone Website PERSON INTERVIEWED: Job title: Date of visit: Email OTHER KEY OFFICIALS IN THIS ESTABLISHMENT: Owner Chief Exec. Officer Plant Manager Human Resources Officer VOLUNTEER VISITORS: Note to Visitation Coordinator:After placing the ID number on this cover sheet and on pages 1 and 4 of the survey,remove the cover sheet and file separately to ensure confidentiality of results. NOTE:IN AN ACTUAL BRE PROGRAM THIS FORM SHOULD BE PRINTED SINGLE-SIDED TO MAXIMIZE ROOM FOR VISITOR NOTE-TAKING ii <City or County Name Here> CONNECTING BUSINESSES AND COMMUNITY PROGRAM Background We believe our existing businesses are our best prospects for future development. The purpose of this program is to see how we can help them succeed I. This program is sponsored locally by the following organizations: name of community organization here name(s)of other local sponsors here Minnesota Department of Employment and Economic Development University of Minnesota Extension II. Technical and applied research assistance for this program is provided by the University of Minnesota Extension. III. Business,government,and educational leaders have agreed to help us work with our local businesses on this program. N. The program is a cooperative effort involving volunteers drawn from other businesses,local government,and educational institutions. V. The objectives of the program are: 1. To demonstrate support for local businesses 2. To help solve immediate business concerns. 3. To increase local businesses' ability to compete in the global economy 4. To establish and implement a strategic plan for economic development. 5. To build community capacity to sustain growth and development. VI. Confidentiality-Your individual answers to this survey are confidential and will not be released except as required by law. Your response will be summarized with those of others to produce an overall result in percentages or averages. If we find an issue in your survey response in which a certain individual or individuals may be able to respond to your concern in a beneficial way, you will be asked at the end of the survey whether you authorize us to release your survey information to them. VII. The"Skip It Rule"-If there is a question that you feel might be best to skip,we will do that;just let us know. There is no need to explain your reasons. VIII. Copy of Summary Report-Copies of the summary will be provided to all businesses that • participate in this survey. Copyright C 2019,Regents of the University of Minnesota. 1 For staff only: Business ID: <City or County Name Here> CONNECTING BUSINESSES AND COMMUNITY PROGRAM Interview Guide City: Date: la. Is all the information on the cover sheet complete and correct? (Circle ONE answer) (1)Yes (2)No --►lb.If No,make the necessary corrections. 2a. Did your business begin its operation in this community? (Circle ONE answer) (1)Yes (2)No --►2b.If No,where did you move from and when? State Year ► 2c.If Yes,what year? 3. What type of facility is this? (Circle all that apply) (1)Branch (2)Distribution (3)Headquarters (4)Home-based business (5)Manufacturing (6)Office-operation(non HQ) (7)Research&Development (8)Retail Sales Office (9)Other: 4a. Is your business locally owned? (Circle ONE answer) (1)Yes (2)No --►4b.If No,where is your corporate headquarters located? (Please identify city,state,&country) 5a. Do you have multiple locations? (Circle ONE answer) (1)Yei (2)No I ► 5b.If Yes,where are they located? 2 6. Which of the following North American Industry Classification System(NAICS)categories best describes your business? (Circle ONE answer) 1.Administration/Support/Waste 11.Manufacturing Management/Remediation Services 2.Agriculture/Forestry/Fishing/Hunting 12.Mining,Quarrying,and Oil and Gas Extraction 3.Accommodation/Food Services 13.Other Services 4.Arts/Entertainment/Recreation 14.Professional/Scientific/Technical Services 5.Construction • 15.Public Administration 6.Educational Services 16.Real Estate/Rental and Leasing 7.Finance/Insurance 17.Retail Trade 8.Health Care Services/Social Assistance 18.Transportation and Warehousing 9.Information 19.Utilities 10.Management of Companies&Enterprises 20.Wholesale Trade Your product/service 7. We are interested in learning about your primary products and services. a.Name the major products or b.What percentage c.Are sales of this product or service? services offered by this establishment of your total sales (Circle ONE answer) comes from each? (Total should equal 100%) (1) % (1)Increasing (2)Stable (3)Decreasing (2) % (1)Increasing (2)Stable (3)Decreasing (3) % (1)Increasing (2)Stable (3)Decreasing (4)Other products or services(specify) % (1)Increasing (2)Stable (3)Decreasing Check total(should equal 100%) 100 8a. What is special or unique about your major products or services? (visitor:Please take detailed notes here.) 8b.What are the one or two most important reasons that customers might choose your competitors over you? • 3 Labor Force i 9. Please estimate how many workers(including yourself)are employed by you at this location? We'd like you to break this out between full-time and part-time for the two time periods shown. a.Full b.Part time(as defined by c.Seasonal(hired by d.Temp agency time the business) the business) employees Currently Three years ago 10. If the number of employees changed from three years ago,please identify up to 3 reasons for the employment change.(Circle UP TO THREE reasons) (a) Business did not exist 3 years ago (b) Change in management (c) Change in profits (d) Change in subcontracting (e) Changes in worker efficiency (f) Corporate decisions/policies (g) Entered new markets (h) Expansion (i) Government regulation (j) Growth in demand (k) Increased competition (1) Lack of demand (m)New products/services (n) Renovation (o) Technological changes (p) Other—please.specify (q) Not applicable 11. What is the average hourly STARTING wage paid to employees in each category? (Ifyou do not have employees in that category,write Not Applicable or NA) (a) Professional/Managerial(managers,accountants,HR professionals etc.) $ (b) Information Technology $ (c) Engineers,Scientists and Technicians $ (d) Arts,Design and other Creative Occupations $ (e) Healthcare Related $ (f) Office and Administrative(secretaries,office clerks,receptionists,etc.) $ (g) Unskilled Service Workers(food prep.,retail sales,housekeeping,etc.) $ (h) Agricultural $ (i) Construction $ (j) Repair and Skilled Maintenance(not janitorial) $ (k) Unskilled Manufacturing(assembly,production helpers,etc.) $ (1) Skilled Manufacturing(welders,machinists,etc.) $ (m)Transportation $ 4 • For staff only Business ID: 12. Does your company have problems recruiting employees in the following categories?(Circle ONE answer per line) Category Yes No Unsure Not Applicable (a) Professional/Managerial(managers, accountants,HR professionals etc.) 1 2 3 NA (b) Information Technology 1 2 3 NA (c) Engineers,Scientists and Technicians 1 2 3 NA (d) Arts,Design and other Creative Occupations 1 2 3 NA (e) Healthcare Related 1 2 3 NA (f) Office and Administrative(secretaries, office clerks,receptionists,etc.) 1 2 3 NA (g) Unskilled Service Workers(food prep., retail sales,housekeeping,etc.) 1 2 3 NA (h) Agricultural 1 2 3 NA (i) Construction 1 2 3 NA (j) Repair and Skilled Maintenance(not janitorial) 1 2 3 NA (k) Unskilled Manufacturing(assembly, production helpers,etc.) 1 2 3 NA (1) Skilled Manufacturing(welders,machinists,etc.) 1 2 3 NA (m) Transportation 1 2 3 NA 13. If you answered "yes"for any category in question 12 above,identify up to 3 of the most important reasons for your recruiting problem. (Circle UP TO THREE.) (a) Competition for employees (b) High cost of training employees (c) High wage rates for labor (d) Inadequate labor skills (e) Lack of child care (f) Poor work attitudes (g) Workers cannot pass screening(drug,criminal record check,etc.)please specify (h) Workers lack documentation of legal work status (i) Workers will not commute into the area (j) Workers will not relocate into the area (k) Other 14. Please estimate the commute time for your employees. (a) Within a 15 minute drive one way % (b) 16-30 minute drive one way % (c) 31-60 minute drive one way (d) 61+minute drive one way % Check total(should equal 100%) 100% 5 15. What resources are you currently using to locate new employees? (Circle ALL that apply) (a) Ad in local community papers (b) Ad in metro/state-wide papers (c) Hire our own apprentices (d) Hire people who were initially temporary employees (e) Internet advertising on job boards(e.g.Craig's List,Indeed,Monster,etc.) (I) Internet advertising on our own website (g) Internet advertising through social media(e.g.Facebook,LinkedIn,etc.) (h) Job Fair (i) CareerForce(Minnesota's Career Resource) (j) Placement office of four-year,community and/or technical colleges (k) Private search firm (1) Professional associations (m)Promote from within (n) Referrals from existing employees (o) Sign in the window (p) Temporary agency/staffing service business (q) Union • (r) Walk-in (s) Word of mouth (t) Other (u) Not applicable 16a. Do you expect the number of employees you have in each of the following categories to increase,decrease or stay the same over the next three years? (Circle 1,2 or 3 for each category) b. If you expect a change,how many employees will be added or subtracted? (Indicate by how many) Category Increase Stay Same Decrease How Many? (a) Professional/Managerial(managers, accountants,HR professionals etc.) 1 2 3 (b) Information Technology 1 2 3 (c) Engineers,Scientists and Technicians 1 2 3 (d) Arts,Design and other Creative 1 2 3 Occupations (e) Healthcare Related 1 2 3 (f) Office and Administrative(secretaries, 1 2 3 office clerks,receptionists,etc.) (g) Unskilled Service Workers(food prep., 1 2 3 retail sales,housekeeping,etc.) (h) Agricultural 1 2 3 (i) Construction 1 2 3 (j) Repair and Skilled Maintenance 1 2 3 (not janitorial) (k) Unskilled Manufacturing(assembly, 1 2 3. production helpers,etc.) (1) Skilled Manufacturing(welders, 1 2 3 machinists,etc.) (m)Transportation 1 2 3 6 17. Overall,how do you rate your employees with respect to their attitude toward work and their productivity? (Circle ONE answer per line) Below Above Poor Average Fair Average Excellent (a) Attitude toward work 1 2 3 4 5 (b) Productivity 1 2 3 4 5 18.Employees and owners often need additional training. (a)Do you need training for either workers or managers? (1)Yes (2)No (b)If yes,circle the categories below and please estimate the number of employees Number of people needing this training (a) General Skills (b) Managerial Skills (c) Sales and Marketing (d) Computer Skills (e) Other Skills(please list) 19.How do you currently train your employees? (Circle ALL that apply.) (a) A government supported program(e.g.Minnesota Job Skills Partnership or similar program) (b) Apprenticeships (c) Contract with private vendors for online training (d) Contract with private vendors-for on-site training (e) Contract with public vendors(technical colleges,etc.)for online training (1) Contract with public vendors(technical colleges,etc.)for on-site training (g) Do not provide any employee training (h) In-house training(one-on-one by supervisor or co-worker,training department classes,etc.) (i) Self-taught(manuals,videos,training materials) (j) Send employees to training offsite (k) Other(Please list) Customers 20.We are interested in the location of your customers. Please estimate the percent of your gross sales coming from the following locations: a.Local(within 25 miles)? percent b.Regional(26-100 miles)? percent c.Outside the region but in the United States? percent d.Outside of the U.S.? percent 100% TOTAL 21a.Is your business currently exporting internationally? (Circle ONE answer) (1)Yes,we export directly from our business 7 (2) Yes,but we sell our product internationally through another company which exports it (ex: US parent company,etc.) (3) No: 21b.What prevents you from exporting your product? (Circle ALL that apply.) (a) Business designed to serve specific area (b) Business is too small (c) Concerns about receiving payment (d) Costs/risks are too high (e) Lack of knowledge of foreign countries/markets (f) Lack of specific export knowledge (g) Language barrier (h) Never fully considered it before—but I would like to consider it (i) Restrictive state and or federal regulations (j) Starting plans to export (k) Tough competition (1) Other 22.If you export now,or previously exported,please identify problems,if any,that you have exporting your product(s)? (Circle ALL that apply) (a) Transportation of product (b) Lack of export fmancing (c) Restrictive state and/or federal regulations (d) Inadequate knowledge of foreign countries/markets (e) Other (f) I do not have problems exporting my product(s) (g) Not applicable Changes 23. a.Are there any major technological innovations on the horizon in your industry that might affect your company? (Circle ONE answer) Yes No Not Sure (1)- (2) (I) ►23b.If No or Not Sure,skip to question 24. ► 23c.If Yes,what are these? 23d. If Yes,will these new technologies require retraining of your labor force? (Circle ONE answer) (1)Yes (2)No 24. Does this business have a written transition plan for ownership,leadership,or both? (1)Yes (2)No (3)Not applicable 8 25. Are there changes in your business plan for the next three years? (Circle ALL that apply) (a) No change in operations (b) Change in mix of goods/services (c) Add or subtract product lines (d) Change production technology or other technology (e) Other 26. Do you have a written business plan? (1)Yes (2)No (3)Not applicable 27a. Do you have any plans to modernize or expand your present buildings(s)or equipment? (Circle ONE answer) Yes No (1) 12) 27b.If No,skip to Question 28. 27c. If Yes,what is planned? 0. 27d. xf Yes,when will the work begin(year)? 28. Which of the following resources would you like to know more about? (a) RETAP(Retiree Environmental Technical Assistance Program)—A free review of your facility by a retired engineer to help find potential energy savings. (b) PACE(Property Assessed Clean Energy)—A new way to fmance energy efficiency and renewable energy upgrades in your business. (c) Utility rebates—learning about the energy efficiency(and occasionally renewable energy) rebates available from the local utility. (d) Renewables—Getting more information about solar or other renewable energy technologies and ) No'.t OtherrlocaUregional resources can be'added here' 9 Future Location Decisions • 29. Are you currently considering? (Circle ALL that apply) (a) Downsizing (b) Selling (c) Merging with or acquiring another business (d) Moving (e) Closing (f) Expanding—at this location (g) Expanding—adding another location (h) Other changes to business plan (i) None of the above 30. If you said in Question 29 that you are considering downsizing,selling,moving or closing, what are the reasons? (Circle ALL that apply) (1) Changing market conditions (2) Overcrowded building (3) No land for expansion (4) Transportation problems (5) Crime/vandalism • (6) Low work productivity (7) Environmental concerns (8) Rigid code enforcement(including ordinances and building codes) (9) High local taxes (10) High state taxes (11) Lease expiration (12) Poor telecommunications/internet • (13) Insufficient labor supply (14) Retiring (15) Another business opportunity (16) Business incentives from other jurisdiction(s) (17) Trying to sell business but unable to sell it (18) Other(specify) . 31. If moving or expanding at another location(Yes to Question 29d or 29g),where are you considering? (Circle ALL that apply) (1) In same city as currently located (2) Another city in this county(specify city) (3) Another county in the state(specify county and city) (4) Another state(specify city and state) (5) Outside of the United States(specify city and country) (6) Undecided 32. If not expanding your business,what is the single biggest factor or issue preventing you? 33a.Do you rent/lease or does this business own this facility? (Circle ONE answer) . 10 (1)Rent/Lease (2)Own 33b.If Rent/Lease,when does the current rental agreement expire? 34a. Does your company currently own or rent/lease sufficient property to allow for expansion if necessary? (Circle ONE answer) Yes Maybe No (1) (2) (3) I I 34b. If Maybe or No,what type of land,buildings, and space needs do you foresee? Community Factors 35. If your business had to.select anew location'in thenear future,how unportant would each of the following factors be in the decision-making process? Not at all Very Not Important Important Applicable 1 2 3 4 n/a A:Workforce : • • . 1)Availability of skilled labor 1 2 ...2.......i__,______j___4 n/a 2 Availability of unskilled labor 1.:` ._ : 2 3., 4':.: ..: .n(a 3)Wage rates 1 2 3 4 _ n/a 4)Emiployee health care cost 333 _ • L.5 Union resence 1 2 3 4 n/a B.Education and Training , K_,12 :1: . 2 ";. •. 3 4 n/a .:_ ,Lli 2)Higher education within a reasonable 1 2 3 4 n/a drive 31.Technical traming•pograms. , ` _ . . 'C. Transportation/Location. ; 1)Highway accessibility 1_ 2 3 4 :.,...,:1:: /a '2)'Ait'service: 1 :: 2 :3.:. ,. _... 3)Proximity to major markets 1 2 3 4 n/a 4)..Proximity:to raw.materials; 31.;:. . . 2 33 n/a' 4 • .. 5)Proximity to service suppliers 1 2 3 4 n/a '6y Railroad service.,. ;... .:,.1:` . :' 2..,::::.7.; : • 3, - . 4;. n/a: 7)Transit&local transQortation 1 2 3 4 n/a D.Land,Buildings,and Credit 1)Avail'ability'ofland '.. ' . • ,. 1' 3.2 :.3 : 4 . --' : 1•n/a 2)Cost of land 1 2 3 4 n/a 3)Availability:of buildings . .. . •••. 1 2 3 4 n/a 4)Cost of buildings 1 2 3 4 n/a )Availability of loans . • . • ..... :1 : 2:;. 3 ':4 ::n/a . i)Cost of loans 1 2 3 4 n/a • 11 1 35.(continued) If your business had Not at all Very Not to select a new location in the near Important Important Applicable future,how important would each of 1 2 3 4 n/a the following factors be in the decision- makin l I rocess? ..E'.Utilities .....:.... ' 1)Energy cost (electric,natural gas) 1 2 3 4 n/a .:2)..a, 2)Energy reliability(electric,•natural 1 .2 3 ` . 4 n/a' :gas) • • a .. 3)Telecommunications& 1 2 3 4 n/a broadband reliability 4)Telecommun Eations& 1 ••;2 3 4 n/a broadband`cost..; ..... . . . •'. . 5)Broadband speed 1 2 3 4 n/a F. Local Business Support :1)Comi munity.attitude towards.business !::::;::: ....i...1;';,-,:.:. .;:',2 .. : . 3•.; .._•4 a . 2)Community promotion of itself and 1 2 3 4 n/a business 3)Chaiiiber of:commerce •1:::','.....;•. ::. 2. 3 c"4 .. "il/a 4)Economic development authority 1 2 3 4 n/a .5)Incentives for business investment in i' : 2 3 ,4 ; u/a ., facilities,"worker skills'or more,workers . . • - :'...;:•:;:-!...,..::: . G.Quality of Life`.•:••i. '-:: ... . 1)Recreational opportunities 1 2 3 4 n/a 2)Cultural opportunities : •. . :1:: -2 •3 ° 4 : .,n/a 3)Social organizations and networks 1 2 3 4 n/a 4)Housing supply .. '` . '.:. .. 1 ':2 ;` 3 -1;::!:::: :::i111;:;..: n/a . 5)Housing costs 1 2 3 4 n/a "6)Health care facilities': ., . . • 1. 2 . 3 . 4.. .., /a 7)Availability of child care 1 2 3 4 n/a H. Government and Regulation '.1)Fire Department, .: 1 , .. ..,:2. . :::;-,;';l3::.; ▪ 4 t ,n/a. • =i.t. 2)Police Department 1 2 3 4 n/a 3)Sewer&.Water1 :2. '•,7:•::-3';'•','.'„.!;•• 4. ;a '•ii/a • .. 4)Street Maintenance 1 2 3 4 • n/a 5)Environmental regulations: :' .1 • • :..2, 3 ;.•4 :;'ii/a • _. . 6)Planning and zoning 1 2 3 4 n/a .:7)Code enforcement.. 1 ";•.41.:,::::2 . : 3 _:... ▪ 4, ..;: .: , :rife I Local"Government Financial. Iytanagement-1' .. • .. ,..:.:1:,:',,;;;!:',.....!:.,.:. , 1)Property Taxes 1 2 3 4 n/a 2 Other Local:Taxes and fees • l : .:2t;.`: 3 4 n/a . .;. 3)Spendingriop rities 1 2 3_ 4 n/a 4)Budget process;:&financial.: .;:::-...:.::.1...:...,:. ':... 2 3 :;;4, ii/a management . • . , 12 36.Based on the following factors,please,rate your.,satisfaction.With your current location,as a place for your company to do business. Very Very Don't Dissatisfied Satisfied know 1 2 3 4 DK A.Workforces::..,. • .. 1)Availability of skilled labor 1 2 3 4 DK ,;2)A iailability:of unsk lied labor . , 1:;.1",;•.. • 2... • 3; 4 .• . :,: :'.:..K ::; 3)Wage rates 1 2 3 4 DK 14)EmployeQ ealthrcare cost':' .1; 2 •.•-•:.;3,::: • :;;;-...;.:4:-,,,: . ,. :;':!..;:i:120 . I. _ 5)Union presence 1 2 3 4 DK B.Education and Training :1)x:1'2.... • :' .1'.. . 2 • 3. . 4 DK 2)Higher education within a reasonable 1 2 3 4 DK drive 3);Teclimcal.trainiiig`programs • 1. , . . ': 2.. ::. 72',..'....3' 4 ,.;::DK: •:C..:Transportation/Location . .. 1)Highway accessibility 1 2 3 4 DK :.2 Air;service;:,. .. • • • • . ,1 2` -3..: 4 :DK 3)Proximity to major markets 1 IIIIEIIIIIMIIIIIEMII 4 DK 4)Proiznity to,xaw materials' _ :. 1 :' : 2 . 3`: 4 .DI(. . .� 5)Proximity to service su liers 1 2 3 4 DK 6):IRailiroad service ...'.:• 2 _. 3 4 .DIC ' 7)Transit&local trans•ortation 2 3 4 DK D.'nLa{d,Buildings;:acid Credit 1)Availabili of land 1 2 3 4 DK 2)Cost:of land:..., ' 2_. . :: .. 3.'. 4 ,. ::..DK ' .t, 3)Availability of buildings 1 2 3 4 DK 4)Cost`o f buildings.,; . : , ;' 1 :::°.. : 2 . 3 , .4., ': ::DK ' 5)Availability of loans 1 2 3 4 DK .6)Costofloans .;°; ; '. :. ;.,1 2 • •••3` ..... 4'. . .':DK ' ,..., MOM • ;E.Utilities • • • ' . 1)Energy cost (electric,natural :as 1 ._._ 2 3 4 DK :1)Energy reliability(electric,`natural; 1- 2 3..: 4.':.....f•••1 ;:DK gas) 3)Telecommunications& 1 2 3 4 DK broadband reliability 4)Telecommunications& '. 1 .. ' : 2 3 : 4 DK :..:.. :-broadband cost... • 5)Broadband speed 1 2 3 4 DK • . , 13 -., , 36.(continued)Based on the following factors,WCike:ii*Siiiii44404MyyjAkyobr,:ctiirT9A h'fraf4:4 as a place for your company to do business. Very • Very Don't Dissatisfied Satisfied know 1 2 3 4 DK F...LOCal•BaainesiSapPortH•:;..;: •,:::....: ••:••.• •.•• : .: • -.'. '; .:•••-.•• ''• •:.•• :.;. .."1: :'•• •:: .1. •:::::..: ••••::::•::;• :1.•!. 1)Community attitude towards 1 2 3 4 DK business 2)Community ProMOtithi of itself and.:*' :. ....i : l'....:.:,:. .2::•.:;•.r:,.::. •.-:,.:7:::- '.... .4:!.i.• :.: '.. .::bk..-:: ::.' .imisiii6s !:'...,:, ..:::'::*:- :.•..: ..• .:.•..: . ,. .;,-: .. .,....',,'";.!... ,. •.-.'.:,:i;....-'...,....,,: ... , '.:!••••::;:s...:;::,,.. .::,::. .:l•I 3)Chamber of commerce 1 2 3 4 DK Economic development authority :: •!'••;'' .::::.1 ..,•:;!..2 ..:;; 2 ..'.:. •.;.:: 'r",:•: :4 :L.....;,:. .-. .....'!DKs::..'...•.:•-. 5)Incentives for business investment 1 2 3 4 DK in facilities,worker skills or more workers G.Quality of Life • , . . . „ .,. . 1)ge4O101414 opportunities:::';'••:'.: -7:.': .,7 ;;i'l'.....:'; .......: :..i..."-..,Z.f'...: :. '..'•3':i'•:::'':': ;',',4:-... •:•:ii;; :',.ii.,:';:c'..D‘Iti.:•-•::::: 2)Cultural opportunities 1 2 3 4 DK )'SO4iil'iiiiiiiiatibiii and'ilaWb:ika :::: :-;Y::•:',•.:,;!1.'•:,.'.!:-,.::',....::,'..::1':,:•-...'•;:1;:::I.1.'T:•'.:•; !•', •;4.':::.,:;.: .. DK.. ., ,•,.... 4)Housing supply 1 2 3 4 DK 5)IldhILSiiiii"dbaii:Li .--';;C: ••:•'.!•:..::. ,. :‘i::.'7•:.:':.:.•iJ :f . 1,::.. :::..:.-:::.:,:l.l.'.2........-:'ic ;;.-1,..'4,...,!.; .:.:!-::.::...!44;;:-.,,: '1: .-...:Dx1........ :! 6)Health care facilities 1 2 3 4 DK 7)*/0ailabilitYpf..child‘p4q;: ::•;'''': •, .'• 1.-.::•: '''::.:•.,• 1. •:-.;••:.:•:.-• :'•: .:2 ••::.•:.••••:.''..::.3 ':,:',.-.'i*-... :, 4'.:,...:, ':1-, ::;:-::..:; i.bic.....,......:- .. II. Government and Regulation ;•,:•••••••!..:•;::' •:;::•::.- .,:''':.;,!::.''• ; • ''' ;!;.•;,.;....!•...;•;;•.!k-i .:••••••:,. .;J-.•; '.•.::•:::.:'.6 -..:7: ,1.. ,:.:•,.iU:•:.: 1)Fire Department 1 2 3 4 DK )Police Department -:--:•::•,:,.;.:-.;',.•••:•:: :•.....: : .: 1 - '. •": ••'•..;"2 ..;, :.. ...•:•.:::3'•:• is::.- '•-;: 4...,:i.'.,;.::',Ei'..r., DK 7:..:;.;• 3)Sewer&Water 1 2 3 4 DK ;'.4).Street Maintenance:;. .• ' ''.'• ., • :.;;••.:. . ....j: '•...'...r :-.. :.:• - r::.2 .:1- !•0:-:.:*-: ::::.1!.:•:.:4:i:..i'.: .',....'::',i.:.bic.:',,•,;!::* 5)Environmental regulations 1 2 3 4 DK . .. . .. . . . .. .• . ... . ... . . ...... ..... •• ,• . . ,., .. 6)PJanning:and,iiming::.' ' .:::::.: .1;;..'. '. .: 1.. ., ...! ... ,.2:..;',i .;. ..,: 1:;.!:,.:.::-..,...I.AJ:-.:',:.:..-...1, i,,, ,!..,...01(.:...:.. .. 7)Code enforcement 1 2 3 4 DK :'..;:-......!.:'..::'...• :- :.•:',''; i-,:.'::: .: :'.; :. ''-:: •-•-,i.... ;••.: . •.•" ;•:2".::••••-;*.-.:;.''.'-:::".,:••• ';';','.:'•:.:i'.-,:•:•.-'•:: :.': ::•-.'•••••!- ••-•;;•1•1.'f.':''..::1•';;.*::::.!:.'•..'.-':;;. I.Local Government Financial Management :1.15tiiib ":::riXes :,!:•••••::! ..:., --'f;.-:-.si .: : 1 7::.-*:''. .:;*: 2 :•:';. ::::3.:.-,..--...' :,.:•-.f..'.:4:',..-:•:::•....:::',::':-.:-D1<:.;!.::-. 2)Other Local Taxes and fees 1 2 3 4 DK 3)Spending priorities: '•-:',.:: . •;••.!.: '.. ..i.:*....F.'•••.'1•::,.. :7. . •: 1:.,.-;:: .:: 11-: : ::7'..!..,'..:..4,::*...,':::.•:.. '.....;...*:.151('.', :. 4)Budget process&financial 1 2 3 4 DK management .." 14 37.Do you have any suggestions for improving the items above(in Question 36.)that you gave lower ratings to? If so,please give the item number and your suggestion for each item: 38 a. Do the following community features related to tourism have a positive impact,no impact,or negative impact on your business? (Circle ONE answer for each item) Very No Very Positive Impact Negative Impact p a ,�,. r�„�..®r:irmz�+aa !® s rammp, _ sacnmms.m,c C •:•. '•(a) `Agtivitiesfor.cluldren and teens .. .: , ... '?.-,1-1''':.?. . +1 ;: :::.0:':'. •1":: . b Amusement and recreation activities +2 +1 0 -1 -2 (c)1Arts and cultural events.;;:,:.';':*,:r!::'.!..'-;:-'.; +1: . .. . o .. . 1 ... .: ..,-...:72:: : (d) Community atmosphere +2 +1 0 1 -2 (e) :Comri unity diversity'.....*::::.:,:i'.:;: 4:., +), 0, , .. . ..1. : 2 (f) Festivals or events +2 +1 0 -1 -2 (g)_Historic atmosphere(downtown, +2 +1 0 -.... ..1::,:::.: 2 :barns;;'etc) ` . . .. .. (h) Information for tourists +2 +1 0 -1 -2 (i). Landscapes(downtown,farm, +2 +1 0 1 2 natural) _0) Lodging facilities +2 +1 0 1. -2 'Flee;;'= conference faciities:. . . . :.-..:1'.;4-..r...'::,.' +1 :::0 ); :%::-/,:::.4.::. (1) Museums/historic sites +2 +1 0 1 -2 m:Natural environnienf'.`, 1 +2... ,:: .:::: :.±1,',:. .0. •:' ..1.. :; . . ..::: (n) Outdoor recreation(including +2 +1 0 -1 -2 hunting/fishing) (o)'.'Proximity to poteiitial,v..isitors *1:.:•±2:: . • +1,..! , , 0 1 2 _,, (p) Seasonal tourism _ +2 +1 0 - -1 2 (q) Transportation access for potential , +2 +1 0 1 2 visitors. 38b.Which of the features listed in Question 38a.do you feel should be the focus of a marketing image for this community? (Please list the LETTERS for UP TO THREE choices) First choice Second choice Third choice 15 39a. Please rate the following factors about retail in this community. (Circle ONE for each item) ), Don't Poor Excellent Know • 1 2 3 4 DK (a):Advertising :. 1 ,' i • 2 3 ::. 4: .::DK .. (b) Coordinated store hours 1 2 3 4 DK (c)':Customer service'.:' -. 1:•:*: , •,• 2 : ..... 3 4; DK (d) Exterior atmosphere of 1 2 3 4 DK the area(e.g.front . entrances,rear entrances, landscaping,street trees, store fronts,sidewalks, cleanliness,signage) (e)-Feeling of safety(e.g 1 ... 2 3 4 DK lighting,security) _ (f) Group advertising 1 2 3 4 DK (g)':1Hours:-Evening .1 2: 3. 4, ,::.DK (h) Hours-Weekend 1 2 3 4 DK (i) -Internet.presence(i .e.:.c 1 2 3 4 .:DK Y0.9-fine)community . retailers.online? -. :. (j) Knowledge and 1 2 3 4 DK friendliness of local personnel Merchandisi.. by :* ' '. 1: ' 2 : :' :. 3 .' .. 4 • :. DK retailers_ _ (1) Other(specify) 1 2 3 4 DK (m):Parking:situation(e.g. 1 2 3 , 4 - DK number of spades, (n) Prices 1 2 3 4 DK (o)':Public restrooms 1 2 ::= 3, •` 4 :':<DX,.' (p) Quality of merchandise 1 2 3 4 DK handled by merchants (9)`:Special events or :, . .. 1 :T. 2 3 4 DK :_;promotions inthe shopping area . r Traffic flow/si: ::e 1 2 3 4 DK (Sy Variety of businesses`: , ..1. ' 2 .: • . ... (t) Variety of places to eat 1 2 3 4 DK 39b. What three items from the above list are the most important to be improved(Idents UP TO THREE LETTERS from the above list) First choice Second choice Third choice 16 40. Considering all the factors in Question 39a.,how would you rate the overall atmosphere in your local shopping area?(Circle ONE answer) (1)Poor (2)Below Average (3)Average (4)Above Average (5)Excellent Summary Questions 41. What is your overall opinion of your community(i.e.where your business is)as a place to conduct business? (Circle ONE answer) (1)Poor (2)Below Average (3)Average (4)Above Average (5)Excellent 42. What is your overall opinion of your community(i.e.where your business is)as a place to live? (Circle ONE answer) (1)Poor (2)Below Average (3)Average (4)Above Average (5)Excellent 43. What state and local policies are of greatest significance to your company? 44. We have covered many issues. Please help us set some priorities on how the Connecting Businesses and Community Task Force can help your business or what we should work on to help all of our existing businesses grow and expand. Please give your additional comments. (visitor,please take notes on back of page,if need be). 17 45. If we find an issue in your survey response in which a certain individual or individuals may be able to respond to your concern in a beneficial way,do you authorize us to release your survey information to them? (Circle ONE answer) (1) Yes Your contact information will be shared with the resource person(s)to aid them in understanding your company and the concern. Please sign here to authorize release of your survey information to the appropriate,selected resources: (2) No We will provide you information about the resources available to assist you,and you will make the first contact with the resource. The resource person(s)will not have access to your survey. Thank you for participating in our Connecting Businesses and Community Visitation Program. We appreciate the time you've given us and the contribution your business is making to our local economy. We cannot promise to solve the concerns you mentioned but we will promise to try. If we can help you in the future,please call: The University of Minnesota shall provide equal access to and opportunity in its programs,facilities,and employment without regard to race,color,creed,religion,national origin,gender,age,marital status, disability,public assistance status,veteran status,sexual orientation,gender identity,or gender expression. HUGO BUSINESS RETENTION Business Retention and Expansion & Summary Report EXPANSION Strategies April 2010 Program sponsors: 1 ,' `� • CONNEXUS xcelEnergyA City of ENERGY H77l1 LI VCf\V! REf�9 N3 Ult RV !WOW' ll,,li�LJ��JJ Your Community Energy Partner k } YAle LAKE AREA BANK PO4( IHtI ,as‘ Friends Serving Veigliba,cSince 191i Ma i) ,ir,d 1N i ry Lt,,.. - �f 7}rnlyf. n r 11 f ,yl n WSB l ., _ Premier i ' , pr , ., ,s &Associates,Inc. 4 In collaboration with: VF S.T. I p si J'l {/Department ofEmpioyment 5ti !,/ a7 • f7Y and Economic Development . . _ , . ,. . : :, znnes5ta Hugo Business Retention and Expansion Strategies Program Summary Report April 2010 Written by: Brigid Tuck University of Minnesota Extension Center for Community Vitality For more information about the Hugo BR&E Program contact: Rachel Simone City of Hugo Associate Planner (651) 762-6304 rsimone@ci.hugo.mn.us Bruce Schwartau Extension Educator in Community Economics University of Minnesota Extension 507-536-6308 bwschwar@umn.edu The University of Minnesota is an equal opportunity educator and employer. Hugo Business Retention and Expansion Program Sponsorship Communities recognize that helping This program is sponsored by the City of existing businesses to survive and grow Hugo, the Hugo Economic Development is a vital economic development Authority, Connexus Energy, Xcel strategy. The Hugo Business Retention Energy, Hugo Business Association, and Expansion Program (BR&E) is Lake Area Bank, Postal Credit Union, designed to assist local businesses in Premier Bank, Reimer Photo, and WSB thriving and expanding in the city. While and Associates. the attraction of new businesses and BR&E History new business start-ups are important components of any economic The Hugo BR&E Leadership Team development strategy, research has shown that forty to eighty percent of new approved entering into the Business jobs are created by existing businesses Retention and Expansion Program after rather than by businesses new to the being accepted into the program by community. University of Minnesota Extension. The first Leadership Team meeting took The Hugo BR&E Program is a place in July of 2009. comprehensive and coordinated approach to assisting existing businesses. Visiting current businesses Business Visits and learning their concerns is only one A total of 38 businesses were visited by component of the process. The BR&E volunteers during the business visitation program builds awareness in the phase. The Leadership Team and Task community of issues that face Force's goal was to visit an equally businesses and builds capacity for the community to address these issues. representative sample of businesses from each major industry classification The program also assists local leaders and community members in working in Hugo. Businesses were selected together to provide solutions to business randomly from within each classification. concerns. During the months of October, Objectives November and December of 2009, the Leadership Team, Task Force and The Hugo BR&E Program has five Volunteer Visitors conducted the Tobjectives: business visits. The teams had initially identified 70 businesses for visitation. 1. To demonstrate support for local Visitors worked in teams of two and took businesses responsibility for arranging and 2. To help solve immediate business conducting the interviews. concerns 3. To increase local businesses' ability Warning Flag Review to compete in the global economy 4. To establish and implement a plan After the surveys were completed and for economic growth and returned, the Task Force met to review 5. To build community capacity to each survey and decide how to handle sustain growth and development. the immediate follow-up. The Warning ©2010 Regents of the University of Minnesota.All rights reserved. 1 Flag review is designed to identify and deal with immediate issues or problems The Task Force reviewed and discussed discovered during the survey process, the potential projects and developed without the need to wait for formal new projects. In the end, the Task analysis of the survey data. Prompt Force established and adapted four attention to issues raised, even when priority projects. These priority projects the issues may be intractable, creates a are featured in this report. positive response from survey participants and builds good will. Following the Task Force Retreat, the individual project committees met to Research Report Development discuss methods for implementing the projects. Lisa Hinz, University of The BR&E Leadership Team sent Minnesota Extension, helped provide copies of the surveys to the University of leadership at this follow-up meeting. Minnesota for tabulation and analysis. The project committees will continue to A summary of the data was prepared for meet. If you have ideas, time, or other the January 7, 2010 state research talents to contribute to these projects, review meeting, where a team of fifteen please contact one of the people listed. individuals (listed later in this report) Your participation would be appreciated. reviewed the results and suggested projects that might respond to the People in the Hugo BR&E businesses' needs. Brigid Tuck then Program prepared the Research Report based on the input of the state research review panel as well as economic development Leadership Team expertise. Overall Coordinator- Rachel Simone, The Research Report identifies four City of Hugo overarching strategies that Hugo could Associate Overall Coordinator-Shayla adopt to address general issues reported by the businesses. The Syverson, City of Hugo Research Report then provides a list of Business Resource Coordinator- Beth potential projects under each of these Jameston, Department of Employment strategies. The Task Force has the and Economic Development knowledge of the community and what projects are suited locally. The potential Milestone Meeting Coordinator-Pat projects are only suggestions for the Nygaard, Hugo Community Leader community to consider. Task Force Retreat Visitation Coordinator-Galen Carlson, Hugo Business Owner A five-hour Task Force retreat was held Media Coordinator- Deb Barnes, The on February 8, 2010 in Hugo. At this retreat, the Task Force was presented Citizen Newspaper the Research Report. The presentation Hugo BR&E Task Force included an overview of the Hugo and Washington County economy and Many community leaders participated as demographic changes, the composite results of the business surveys, and the Task Force members. This group four strategies. visited businesses, addressed warning ©2010 Regents of the University of Minnesota.All rights reserved. 2 flag issues, set priorities for action and Mike Gallivan, Gallivan Insurance will assist in implementing the chosen Margo Geving, Hugo Good Neighbors projects. Task Force members (listed Food Shelf and Forest Lake Area below)also participated in business Schools visits. Brant Gustafson, Postal Credit Union Matt Alexander, Kraus-Anderson Dennis Hegberg, Washington County Commissioner Jan Arcand, Hugo Economic Joe Houle, Premier Bank Development Authority& Oneka Ridge Beth Jameston, Washington County Golf Course WorkForce Center Duane Arens, Connexus Energy Phil Klein, Hugo City Councilmember Bridgett Backman, Century College Jim Leroux, Former Hugo City Deb Barnes, The Citizen Newspaper Councilmember Bryan Bear, Executive Director of the Mike Lovett, Superintendent, White Bear Economic Development Authority and Lake Area Schools Community Development Director Steve Marier, Hugo Feed Mill Duane Bengston, Hugo Community Larry Martini, Business Services, Forest Leader Lake Area Schools Duane Berg, Wilson Tool Mary McNellis, St. Croix Real Estate Karyn Berg, Ramsey County WorkForce Mickey Michlitsch, Sertinos Café Center Pat Nygaard, Hugo Community Leader Jim Bever, Hugo Economic Pete Pederson, Former Hugo Parks Development Authority and Bever Commissioner Landscaping Karen Bever, Bever Landscaping Frank Puleo, Lebens Flower Shop and former Councilmember Lenore Birch, White Bear Lake Area Kerstin Quigley, Lake Area Bank Schools Patti Breen, Northern Lights Pediatrics Katie Riopel, Katie's K-9 Obedience Galen Carlson, North Country Auto School and Hugo Lions Club Body Denny Route, Hugo Lions Club Shelly Clasen Tesser, Administrative Julie Route, Hugo Lions Club Intern, City of Hugo Keith Ryskoski, Superintendent, Matt Dean, Minnesota House of Stillwater Area Public Schools Representatives Bruce Sayler, Connexus Energy Bob Defter, Minnesota House of Molly Seidl, Kraus-Anderson Representatives Steve Seidl, Kraus-Anderson Sharon Dierkhising, Hugo Community Rachel Simone, Associate Planner, City Leader of Hugo Deb Drake, Hugo Community Leader Shayla Syverson, Economic Kris Emerson, Hugo Good Neighbors Development/Parks Intern, City of Hugo Food Shelf Nikki Walters, Sun Barn Farms and Wild Randy Engelmayer, Country Financial Wings of Oneka Michael Ericson, City Administrator, City Tom Weidt, Hugo City Councilmember of Hugo Angie Fromm, Guys and Dolls Salon ©2010 Regents of the University of Minnesota.All rights reserved. 3 Businesses Visited Consultants Thirty-eight businesses were visited Bruce Schwartau and Liz Templin, during the BR&E process. The University of Minnesota Extension, community greatly appreciates their served as the BR&E consultants for the willingness to help the community Hugo BR&E program. This included understand their needs. Their survey coaching and advising the local responses are confidential yet it is Leadership Team, conducting Volunteer important to credit their participation by Visitor training with the Task Force, listing their names here. assisting the Leadership Team in business selection, facilitating the American Legion Warning Flag review meetings, and Bald Eagle Sportsman Association participating in the State Review Panel. Carpenter's Steak House Chips Computer Service State Research Review Panel Cornerstone Chiropractic Country Video The panel reviewed the tabulated Discovery Financial Brokerage survey results and suggested potential Kurt Grainger Enterprises actions that might be taken by Hugo Gene's Disposal Service leaders in response to local firm Grundhofer's Old Fashion Meats concerns. The participants of the Gunner Construction January 7, 2010 meeting were: Health East Hugo Clinic Hugo Chiropractic Minnesota Department of Employment JL Schweiters Construction and Economic Development: JT Services Inc • Ed Dieter Katie's K-9 Obedience School • Gene Goddard Key Automotive KWIK Trip University of Minnesota: Lake Area Bank • Michael Darger, Extension Lametti & Sons Inc • Liz Davis, Applied Economics Los Ninos Spanish Preschool • Lee Munich, Humphrey Institute Manomin Resawn Timbers • Bruce Schwartau, Extension Oneka Pet Resort • Brigid Tuck, Extension Oneka Ridge Golf Course • Ward Nefstead, Applied Economics Premier Banks Reimer Photo Hugo Task Force: Sertinos Cafe • Duane Arens Subway • Bryan Bear TGK Automotive • Karyn Berg The Citizen • Galen Carlson The Fry Group • Michael Ericson Trepanier Stucco LLC • Rachel Simone US Bank White Bear Trailer Works • Shayla Syverson Wild Wings Game Farm Wilson Tool Withrow Elementary School Woodrunn Horse Boarding ©2010 Regents of the University of Minnesota.All rights reserved. 4 Hugo's Economic and Hugo BR&E Survey Results Demographic Profile Following are the results of the survey of A profile of Hugo's economy and the 38 businesses visited. The demographics was prepared for the businesses' characteristics are Research Report and presented at the summarized first followed by priority Task Force retreat on February 8th. projects selected by the Task Force. The profile was created and written by Survey results related to those projects Rachel Vilsack of the Minnesota are included in this summary. Additional Department of Employment and survey results including four strategic Economic Development. The profile themes are in the Research Report. contains statistics on population, employment, income, commuting and Characteristics of Businesses Visited labor sheds, occupations and educational attainment. Eighty-four percent of the businesses that participated in the Hugo BR&E A full copy of the profile can be viewed survey are locally controlled, shown in in the Research Report which can be Figure 1. obtained by contacting Rachel Simone, City of Hugo, at (651) 762-6304. Figure 1: Business Ownership No Response Branch 5% 8% Franchise %Av `x ::::.e r•r r•- . ti•ti•�•tiw- elNNe♦ • i.r•r.r•r• 30/ •ti•ti• .ti-. fleee♦!ee! 0 •%•••:{ :e. ♦eleele!!!♦ .pp.... ♦e!!!elffe♦ r•r•r•r• w•+•+•ti efleelfefeef •r•r•r•r •ti-ti.ti+ ♦!!!!!!!flee! .r..r. Locally �•�•� ......••••••••• tifti. ♦lfeeeeeeee!♦ ref+ ♦flelfeeeeff! \ fee!!!!!!lffef Owned / ..........l.e. 444*4! ♦feeeeeee!!!!♦ Operated, iiii�iiii�iiiiiiiiiiiiii•.•.• Locally Multiple !e!!e!!eelffefffe!!eleeelf♦ eeeeeeleeleflffe!leeel.e!! Owned / Locations !lfffeele!!!!flfffeeefeef fefffffeeelelffffefeefe♦ 80/0 _Operated, - ffeeeeefeee!!lfffe♦ •••••••••••••••••••• One ♦!eleee!!!ef♦ •••••••• Location 76% ©2010 Regents of the University of Minnesota.All rights reserved. 5 Seventy-six percent of the participating the businesses surveyed intend to businesses are locally owned with one decrease their work force in the next location and eight percent are locally three years. Roughly one-fifth of owned with multiple locations. One businesses expect to add employees in conclusion that can be drawn from these select job categories in the next three results is that many decisions regarding years. Hugo businesses are made locally. Overall, the survey results indicate that The businesses visited employ a total of businesses in Hugo are hopeful for the 599 full-time employees and 224 part- future. As shown in Figure 2, only one time employees. Overall, employment of the responding businesses indicated is down 220 jobs from three years ago. that they are considering closing and Full-time employment is down 324 jobs none are contemplating downsizing. while part-time employment is up 64 Nearly a quarter of the businesses (24 jobs. This downturn is consistent with percent) are considering expanding at the economic recession experienced in their current location and another the United States during this time thirteen percent in another location. The period, although it looks like the majority of businesses indicated they participating Hugo businesses took a were not currently considering any harder hit. Businesses appear to changes. believe that the recession's effects are waning for their businesses. None of Figure 2: Future Plans No Changes Planned 'I VIII Expanding at This Location Other Changes Expanding at Another Location Merging Moving Selling Closing ■ Downsizing 0 2 4 6 8 10 12 14 16 ©2010 Regents of the University of Minnesota.All rights reserved. 6 Finally, businesses report Hugo as a 3. Host Business and Breakfast good place to live. On a scale of 1 to 5, Workshop(s) 5 being "excellent" and 1 being "poor", 4. Address Highway 61 Access Issues the average response to the question and Improve Downtown Hugo "What is your overall opinion of Hugo as a place to live"was 4.16. A similar Priority Project#1: Market the question, "What is your overall opinion City of Hugo of Hugo as a place to conduct business" earned an average of 3.79. Increased exposure can help businesses generate profits. Exposure Overview of BR&E Projects for to consumers, to other businesses, and Hugo to new business opportunities, for example, can all provide businesses Profits are the key to the retention and with avenues to generate more revenue expansion of firms. While the owners of and greater profit. For some a business might be attracted to a place businesses, the highest priority is direct because it is a nice place to live or raise exposure, through advertising or a family, a business can only survive if it promotion, to the individual consumer. makes a profit. The same is the case For other businesses, it's paramount to for businesses that start in the gain exposure to other businesses that community. The owners may be loyal to may present an opportunity for the community, but if they cannot make business-to-business sales. Hugo their business profitable they will close businesses could profit from greater or move it; they do not have a choice. exposure of the City of Hugo itself. In a market economy, making a profit is Related Survey Results the responsibility of business management and its employees, not Businesses in Hugo value small town community groups, local or state atmosphere and charm. When asked to governments. However, the actions of rate from a list of community features these groups can sometimes help which features have a positive impact, businesses become slightly more no impact, or a negative impact on their profitable. The priority projects outlined business, Hugo businesses awarded below are aimed at helping businesses "small town atmosphere" an average of become more profitable and thus be 1.34 (2.0 = very positive impact; 0 = able to survive and grow in the neutral), making it the most highly rated community. community feature. "Freeway access" (1.13) and "festivals and events" (0.79) Hugo BR&E Priority Projects rounded out the top three community features. None of the eighteen features The following four priority projects were received a negative score. selected at the Task Force retreat held Project Plans from the Committee: in Hugo on February 8, 2010. This project is based on several 1. Market the City of Hugo potential marking strategies that all 2. Create, Coordinate, and Encourage relate to the City of Hugo and its Events businesses. Each item falls under an idea for a marketing plan for the City ©2010 Regents of the University of Minnesota.All rights reserved. 7 that would consist of public relations, Priority Project#2: Create, advertising, and sales. There were Coordinate, and Encourage several indications within the BR&E Events surveys that suggested that businesses wanted help promoting their business Businesses thrive in attractive with an emphasis on advertizing. Over communities. These attractive the next several months the project communities have amenities and team will be working on putting together opportunities that draw resources the a marketing plan for the City and businesses require. These resources incorporating ways to help the can be quite varied, ranging from quality businesses in Hugo. The marketing plan employees to tourists to developers to will also help recruit new businesses complimentary businesses to into the City. Some of the goals for the infrastructure. Businesses need these marketing plan include a City slogan, resources to be successful and multimedia campaign, visitor guidebook, profitable. Events could potentially help and tradeshows. The project team the City of Hugo be more attractive. suggested that the City partner with the local business associations to put Related Survey Results together portions of the marketing plan for the City. Responding businesses perceive Hugo This committee will be led by Rachel as a great place to live. When asked to rate their overall opinion of Hugo as a Simone, Tom Weidt, Louis Melamed, place to live, where 1 equaled "poor" Bridgett Backman, Gretchen Boyd and and 5 equaled "excellent", businesses Michele Tesser. gave Hugo an overall score of 4.16 or "very good", see Figure 3. Figure 3: Overall Opinion of Hugo As a Place to Live 1=Poor 2=Fair 0% 5% ••• 3=Good •iii:: 16% ••••••••• •••••••••• •••••••••• ••••••••••• 5=Excellent ••••••••••••� •••••••••••• •••••••••••• • 42% •••••••••••••; •••••••••••••, ••••••••••••♦ •••••••••••♦ , •••••••••••• ••••••••••• ••••••••• ••••••• •+*• 4=Very Good 37% ©2010 Regents of the University of Minnesota.All rights reserved. 8 No business responded that Hugo was encourage biking, hiking, skiing and a "poor" place to live. running would draw outside visitors to Hugo. Encouraging healthy family- Businesses were asked if certain friendly activities would benefit the life- community features had a positive styles enjoyed in Hugo. The residents impact (+2), no impact(0), or a negative of Hugo support community events and impact (-2) on their business. The there is the potential for additional community features having the most offerings which promote local positive impact were small town businesses. atmosphere (1.34), freeway access (1.13), and festivals or events (0.79). This committee will be led by Shayla The community features having the Syverson, Patti Breen, Mike Gallivan, least positive impact were lodging Kate Riopel, and Duane Berg. facilities (0.03), museums and historic sites (0.11) and meeting facilities (0.32). Priority Project#3: Host Business and Breakfast Workshop(s) Project Plans from the Committee: Profitable businesses tend to have This project consists of supporting efficient, knowledgeable, and skilled existing events and brainstorming owners, managers and employees. A additional events that have an economic business owner must not only have a impact on Hugo. Hugo has several marketable product, but also the skills existing community events which are and abilities to bring that product to well-planned and have grown in the last market at a profit. Trained and skilled few years. These events have been employees can assist business owners developed and promoted by in achieving that goal. Business and organizations such as the Lions Club, Breakfast Workshop(s)would give local Hugo Business Association, Oneka PTA business owners an opportunity to be and other community groups. One of the exposed to training opportunities and most well known community events to other resources as well as to information support is Hugo Good Neighbor Days. about City activities. The project team will work with the Lions Club to further promote and expand this Related Survey Results event. The project team will encourage the organizers of existing community events to coordinate with businesses Overall, businesses in Hugo appear to and take advantage of opportunities for be satisfied with the quality and business promotion. availability of the labor force in and around Hugo. When asked to rate their The project group will also brainstorm employees with respect to their attitude other events, as a part of a two to three towards work and their productivity on a year plan. A number of very exciting scale, where 1 equaled "poor" and 5 possibilities have already been equaled "excellent", the average score discussed: a park bonfire, sledding for both attitude and productivity was party, pet fest, music in the park, golf 4.4. No business rated employees as tournament and triathlon. Also, either poor or fair with respect to either developing a charity motorcycle run to of these measures, as evidenced in draw a large contingent of motorcycle Figure 4. enthusiasts to local businesses is an option. Creating and expanding trails to ©2010 Regents of the University of Minnesota.All rights reserved. 9 Figure 4: Employee Attitude 2=Fair 1=Poor 0% 0% 3=Good •••i 12% •••••• ••••••• ••••••••• •••••••••• •••••••••• •••••••••••• •••••••••••• •••••••••••• •••••••••••• ♦••••••••••• 5=Excellent •••••••••••♦ 55% •••••••••••••//44=VryGood 3% •••••••• This committee will be led by Mike Project Plans from the Committee: Ericson, Duane Arens, Bruce Sayler, Galen Carlson, and Mickey Michlitsch. This project is based on the survey results that stated businesses wanted Priority Project#4: Address ways to network with each other. The Highway 61 Access Issues and project team recommended having a Improve Downtown Hugo business breakfast workshop with a speaker and a time to socialize. The Just as loving a community does not business and breakfast can be thought ensure profitability for a business; of in many forms, for example, brunch, profitability does not ensure a business lunch and dinner socials. One of the will remain loyal to a community. main ideas was having an annual "State Businesses may also consider a host of of the City" speech from the Mayor of factors when deciding to remain in a Hugo and also bringing in County and community or to move to another. State officials in to speak to the Businesses need quick, easy access to business owners. This would give an their businesses for both their opportunity for the businesses to customers and their suppliers. They interact with their local, County and may also prefer to be located in a State officials. The project team will be community with an attractive, thriving brainstorming over the next few months downtown. on how to accomplish their goals to provide a new way for businesses to Related Survey Results network and exchange information with their officials. Businesses appear to have mixed opinions of Hugo as a place to do business. ©2010 Regents of the University of Minnesota.All rights reserved. 10 Figure 5: Overall Opinion of Hugo As A Place to Conduct Business 1=Poor 2=Fair 5=Excellent 0% 11 % 21% •••- ••••• ••••••• • ••••••••• ••••••••••• ♦••••••••• ••••••••••• ••••••••••••• 3=Good •••••••••••••� •••••••••••••� ••••••••••� ' 210/0 ••••• • KK • ,cra3vax 4=Very Good 47% Businesses were asked to rate Hugo as group was presented with the a place to conduct business on a scale Memorandum of Understanding for where 1 equaled "poor" and 5 equaled Highway 61 between the City, "excellent". The average score for the Washington County and the State of businesses' responses was 3.79. This Minnesota on the access to the translates into a rating between "very highway. This was something the good" and "good", which is slightly lower members did not previously know about than the score typically seen in other and will learn more about as the project communities. Responses to the team meets. question are shown in Figure 5. Within the survey there were three retail However, businesses are also being factors that were chosen as the most attracted into Hugo. One of every three important to be improved. These three responding businesses started in were variety of businesses, exterior another community and moved into atmosphere, and variety of places to Hugo. eat. This project team will also be working on tasks to improve the Project Plans from the Committee: downtown by eliminating blight and attracting new businesses with an This project started because access to emphasis on quality. As the project Highway 61 was identified as a concern team meets there will be an outline of businesses located in the downtown created on how to implement the goal of area of Hugo. They wanted to make improving the downtown area. sure that there was adequate access to their businesses as the highway is This committee will be led by Bryan improved. At the implementation Bear, Jan Arcand, Steve Marier, and meeting on February 16, 2010, the Richard Fischer. ©2010 Regents of the University of Minnesota.All rights reserved. 11 ♦A• A ♦ The Task Force selected the priority projects. This summary report was prepared by Brigid Tuck, University of Minnesota Extension Center for Community Vitality, Community Economics. Editorial assistance was provided by Bruce Schwartau and Michael Darger of University of Minnesota Extension. Task Force members also contributed to this report. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Please contact Brigid Tuck at 507-389- 6979 or email at tuckb@umn.edu. University of Minnesota Extension is committed to the policy that all persons shall have equal access to its programs, facilities, and employment without regard to race, color, creed, religion, national origin, sex, age, marital status, disability, public assistance status, veteran status, or sexual orientation. ©2010 Regents of the University of Minnesota.All rights reserved. 12 Vadnais Heights Business Retention and Expansion Strategies Program SUMMARY REPORT September 2016 Authored by Monica Haynes and Gina Grensing University of Minnesota Duluth Bureau of Business and Economic Research Edited by Michael Darger, University of Minnesota Extension Sponsors: Vadnais Heights Economic Development Corporation (VHEDC) City of Vadnais Heights Xcel Energy Connexus Energy Minnesota Chamber of Commerce Minnesota Department of Employment and Economic Development University of Minnesota Extension Sponsors: V .wry MINNESOTA Rof V. ` `'` Vadnais Heights Economic COMMERCE Heights ')eveloprnent Corporation GNOW MINNFSOTAI Xcel Energy' diti CONNEXUS ENERGY UNIVERSITY OF MINNESOTA Your Community Energy Partner EXTENSION p Si P1Th7i7 ` ©2016 Regents of the University of Minnesota. All rights reserved.University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act,this material is available in alternative formats upon request.Direct requests to the Extension Store at 800-876-8636. a Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material. g ,. VADNAIS HEIGHTS BR&E 1 VADNAIS HEIGHTS BUSINESS RETENTION A final benefit of a BR&E program is how the AND EXPANSION PROGRAM process enhances the team of local leaders. The BR&E program team is much broader than many Business Retention and Expansion(BR&E)is a other local economic development teams, key element of local economic development including representatives from education and efforts.While the attraction of new businesses government in addition to business and and incubation of start-ups can be important economic development leaders.This diverse components of an overall economic membership allows the local BR&E task force to development strategy, communities now bring in more resources,ideas, and contacts to recognize that helping existing businesses address problems identified in the survey. Quite survive and grow is the strategy that pays the often,this local team will continue to interact most dividends for economic development. and address other community concerns that Expansions and contractions are defined as arise long after the official program has ended. changes in employment at an existing plant or Program Objectives business location. Start-ups and dissolutions are The Vadnais Heights BR&E Program has five defined as the creation or closing down of a objectives: separate plant or business location. The "churning" of business creation, dissolution, • To demonstrate support for local expansion, and contraction is a natural part of a businesses; local economy. The BR&E challenge to a • To help solve immediate business concerns; community is to facilitate the expansions while taking preventative actions to reduce the • To increase local businesses' ability to number of dissolutions and diminish the compete in the global economy; contractions. • To establish and implement a strategic plan Commonly,more jobs are created by business for economic development; and, expansions than by new business start-ups. • To build community capacity to sustain Minnesota data from 2014 confirms that more growth and development. than 75%of new jobs in the state were created by existing business.' Vadnais Heights,in Program Sponsors launching this BR&E program,has the potential The Vadnais Heights BR&E Program is to improve the climate for existing businesses sponsored by the following organizations: and, therefore,benefit from the continued presence and growth of those businesses. Vadnais Heights Economic Development Corporation Another benefit of a BR&E program is the information provided by the survey on the • City of Vadnais Heights community's strengths and weaknesses. The • Xcel Energy strengths can be highlighted in community • promotional materials,and identifying Connexus Energy weaknesses gives the community an • Minnesota Chamber of Commerce opportunity to make important changes and show businesses it is responsive. By • Minnesota Department of Employment and acknowledging weaknesses, a community also Economic Development shows businesses it is trustworthy and will look • University of Minnesota Extension realistically at its situation. Source:Minnesota DEED,QCEW program ®1111 Vadnais Heights BR&E Summary Report 1 BR&E Process and Key Dates prioritized 75 businesses for interviews using selection criteria including number of Several community leaders who are invested in employees,building size,land and building the program's implementation,form the core space available for potential expansion, and group for a BR&E initiative.They then identify other business factors.Although this method is five to eight people who form the Leadership not statistically representative of the greater Team.Each has a clearly defined role in the business population,it does provide the team BR&E process.The Leadership Team with a sample that included the largest responsibilities are vast and vital to the success businesses with the greatest number of of the program.These include recruiting employees. volunteers, identifying businesses to visit, providing survey input, performing business Warning Flag Review visits, coordinating milestone meetings,building The Warning Flag Review session, a highly community awareness, and recruiting the Task critical piece of the BR&E process, provided an Force. opportunity for the Task Force to address The Task Force guides the BR&E process, helps individual business concerns that need the Leadership Team with business visits, and immediate attention.This is probably the single becomes involved in prioritizing and responding most important activity that a BR&E initiative to issues identified in the business interviews. can do -responding appropriately and Vadnais Heights's BR&E initiative officially confidentially to businesses on issues such as launched in January of 2016 with the business relocations, concerns with public Leadership Team's first meeting. service,needs for resources, etc.This was done by overall coordinators and business resources Volunteer Training coordinators throughout the process and Volunteer Visitor training sessions,held in formally in April with the leadership team. February of 2016, oriented volunteer visitors to Campus Research Review the BR&E process.Volunteer visitors were Completed business surveys were tabulated and trained on the use of the interview guide and analyzed by the University of Minnesota how to interview business owners.Working as Extension. The data summary was presented to teams of two during the interview, one participants of the Vadnais Heights BR&E volunteer was primarily responsible for asking Campus Research Review meeting held March the questions while the second recorded the 31, 2016,in St. Paul. Participants identified responses. predominant, common themes in the survey Interview Guide responses and suggested project ideas to address the themes. Vadnais Heights adopted Extension's interview guide as its survey instrument.Volunteer Research Report Development visitors used the interview guide on the Monica Haynes and her team from the Bureau of business visits. Business and Economic Research at UMD's Business Selection&Visits Labovitz School of Business prepared the research report utilizing the results of the The Vadnais Heights's BR&E Leadership Team Campus Research Review meeting and and Task Force visited 45 businesses during additional economic development research.The February and March of 2016. research report collectively detailed four The team began the process of business overarching strategies and a robust compilation selection with a full list of 291 businesses using of suggested projects for each strategy. the Fire Occupancy Program List.They then Vadnais Heights BR&E Summary Report 2 Task Force Retreat Vadnais Heights BR&E Task Force Members A four-hour Task Force retreat was held May 19, Bob Arvold Enterprise Minnesota 2016,in Vadnais Heights and facilitated by Wes Beedon Peoples Bank Midwest Michael Darger,University of Minnesota Extension.There, the Task Force was presented Karyn Berg Ramsey County with the Research Report.The presentation Workforce Solutions included a DEED overview of the Vadnais Becky Bjorgum Innovize/VHEDC Board Heights area economy and demographic Member situation, the composite results of the business interviews, and the four strategies.The Mike Bowen CBRE Research Report can be obtained by contacting Michael Cady Connexus Board one of the Task Force members. Member/VH Resident Because the Vadnais Heights BR&E Task Force Ed Caillier Vadnais Heights(VH) has the most knowledge of its community,it is Resident/Planning in the best position to discern which projects Commission would be locally suitable for implementation. The Task Force reviewed and discussed the Brian Carnes Planning Commission potential projects and developed additional Chair/VH Resident project ideas.Ultimately,six priority projects Evan Cordes VH Safety were created. Committee/VH Resident VADNAIS HEIGHTS BR&E PROGRAM Marguerite DeFore MidWest One PARTICIPANTS Bank/VHEDC Board Four groups of people have been instrumental Member to Vadnais Heights's BR&E program success to Barbara Hall Cottages of Vadnais date—the Leadership Team,the Task Force and Heights volunteer visitors, and the businesses visited. Additionally, the Campus Research Review team Blake Huffman Ramsey County deserves acknowledgement for their process Commissioner participation. Ed Jambor Lake Area Bank Vadnais Heights BR&E Leadership Team Megan Livgard Greater MSP Members Robert Morse MidCountry Ling Becker,Vadnais Heights Economic Bank/VHEDC Board Development Council(VHEDC)-Overall Member/VH Resident Coordinator Bill Nelson Innovative Office Kevin Watson, City of Vadnais Heights-Overall Solutions Coordinator Larry Raddatz Century College Carie Fuhrman,City of Vadnais Heights Linda Reber All Medical Business Resource Coordinator Personnel/VHEDC Board Gerry Urban,VHEDC-Visitation Coordinator Member/VH Resident Debby Gustafson,Twin Cities Metro CDC- Bruce Sayler Connexus Energy Media Coordinator Kathi Schaff MN Chamber/Grow MN Craig Johnson, City of Vadnais Heights Thomas Voegele Comcast/VHEDC Board Marc Johannsen, City of Vadnais Heights Vadnais Heights BR&E Summary Report 3 tt- X[([i4 Member Jimmy's Food&Drink Grant Weber North Star Council Boy Knowledge Beginnings Scouts of America Larson Engineering Kristine WBLAS Director of Wehrkamp Community Massage Envy Services!VHEDC Board Merrick, Inc Member MGC Diagnostics MGM Liquor Business Visited Midwest Spine The following 45 businesses graciously agreed Mike Haas Financial to be interviewed as part of the BR&E visitation process. While survey responses are MME group confidential, it is important to acknowledge the Network Title effort of participating businesses. Northern Air Corporation Abrasives of St. Paul Proulx Properties aHEARTT Reell Precision Manufacturing Ally People Solutions Renstrom Dental Andrews Knitting Mills Robert Hill Law Buerkle Honda and Hyundai Salon Zeo Childrens Discovery Academy Shermco Industries Carlson and Associates Short Elliott Hendrickson(SHE) Cities Credit Union Terracon Consultants, Inc. Con-Tek Machine TSE,Inc. DuFresne Manufacturing Twin Cities Metro CDC Electronic Industries Urban's Farm and Greenhouses Fairfield Inn and Suites Vadnais Heights Cottages Fairway Collison FinnRent Campus Research Review Team Members Holiday Inn Express&Suites The Campus Research Review panel was I.C. System comprised of University of Minnesota faculty Ingenuity Concepts and staff,Minnesota Department of Employment and Economic Development(DEED) Innovative Office Solutions specialists, other economic development Innovize professionals, and Vadnais Heights Leadership IPS Worldwide Team members. This group analyzed the survey data to identify the strengths,weaknesses, J.D.Products opportunities, and threats (SWOT), as well as to ideate potential project ideas that address Vadnais Heights BR&E Summary Report 4 issues emerging from the SWOT analysis. A list Additional Assistance of participants in the Campus Research Review Lauren Sorgaard from Extension's Cloquet follows. Regional Office, tabulated the data entry and Vadnais Heights BR&E Leadership Team prepared the data summary.Jodie Kaden and Ling Becker, Overall Coordinator Ilyas Wehelie, Extension Center for Community Vitality,provided report assembly and printing. Debby Gustafson,Twin Cities Metro CDC- Media Coordinator VADNAIS HEIGHTS ECONOMIC AND Craig Johnson,City of Vadnais Heights DEMOGRAPHIC PROFILE Gerry Urban,VHEDC-Visitation Coordinator A profile of Vadnais Heights' economy and Kevin Watson, City of Vadnais Heights- demographics was prepared for the Research Overall Coordinator Report and presented at the Task Force retreat Minnesota Department of Employment and on May 19, 2016.The profile, created by Tim Economic Development O'Neill of the Minnesota Department of Employment and Economic Development Tim O'Neill,Research Analysis Specialist (labor market information) (DEED),includes statistics on population, demographics,employment,wages,commuting John Shoffner,Business Development and labor sheds,unemployment, and Director occupations. Economic and Community Development A full copy of the profile can be viewed in the Professionals BR&E research report by contacting one of the Kathi Schaff, Grow Minnesota program, Task Force members. Minnesota Chamber of Commerce VADNAIS HEIGHTS INTERVIEW RESULTS Nerita Hughes,Ramsey County Workforce Solutions Of the 45 businesses visited, 80%are locally owned, and 51%indicated that their Vadnais University of Minnesota Heights location is their headquarters. Michael Darger, Extension Center for The greatest percentage of survey respondents Community Vitality(meeting facilitator) (27%)identified as being in the Manufacturing Lee Munnich,Humphrey School of Public industry(see Figure 1). While that is the largest Affairs number of businesses in one classification of surveyed businesses,it is not indicative of the Adeel Ahmed,Extension Community Vitality actual size of the Manufacturing industry in Laura Kalambokidis,Department of Applied Vadnais Heights.According to DEED statistics, Economics only 5%of the city's firms are Manufacturing. It's typical in BR&E visitation programs to pay • Ward Nefstead, Department of Applied special attention to manufacturing businesses Economics because they tend to pay higher wages on Monica Haynes, Bureau of Business and average, create higher economic impact and Economic Research-Duluth therefore are likely to be offered inducements to move or expand to other communities. Gina Grensing,Bureau of Business and Economic Research-Duluth The next highest for industry classification was a three-way split as shown in Figure 1. Vadnais Heights BR&E Summary Report 5 Manufacturing 27% Finance/insurance 11% Health care/social service 11==1111111111111111111111111111111=1 11% Professional/scientific/services 11% Retail trade 9% Other services MOMMIMMI 7% Real estate/rental 111.111.11MMI 7% Wholesale trade 7% Accommodation/food 4% Ag/forestry/fishing/hunting MIN 2% Construction MI 2% Educational MI 2% 0% 5% 10% 15% 20% 25% 30% Percentage of Businesses Figure 1:Which of the following industry classifications best describes your business? A slight increase in employment is evident accessibility,proximity to major markets,health among surveyed businesses,with a total care facilities,police, and fire(Figure 2 below). number of 2,676 current employees, compared to 2,646 three years ago. However,this represents only a 1%increase compared with DEED statistics of the greater Vadnais Heights community during the same period,which shows employment growth of 7%or 500 jobs. The majority of growth resulted from Growth in Demand(36%of businesses surveyed)and Expansion(20%of businesses surveyed). It is notable that 53%of surveyed businesses are planning to modernize or expand their buildings or equipment. In a separate question regarding business plans, 40%of the businesses said they expected no change in the next three years; 27%replied that there will be a change in their mix of goods/services; 24%replied they will be adding or subtracting products; and another 20%will be making changes in production technology. Surveyed businesses in Vadnais Heights cited many reasons to celebrate their community. Some of the perceived assets include highway MO=111 Vadnais Heights BR&E Summary Report 6 3. Improve Public Transportation Community factor Importance Satisfaction Throughout the City Highway accessibility 3.58 3.80 4. Establish a Community Identity Proximity to major markets 3.30 3.58 Under each strategy, the Research Report listed potential projects that the Vadnais Health care facilities 3.20 3.53 Heights BR&E Task Force could select to help Police 3.49 3.48 accomplish the strategy. During their May 19, Fire 3.38 3.46 2016,retreat, the Task Force developed six Community attitude to priority projects to address business business 3.58 3.41 concerns.The Task Force built on project Energy reliability 3.78 3.38 ideas written in the Research Report to create Community promotion 3.22 3.35 projects that were suitable for Vadnais Sewer&water 3.42 3,28 Heights. These priority projects are described below. Availability of loans 3.25 3.27 Street maintenance 3.38 3.26 The respective project teams created each project's description.Descriptions include Housing supply 3.23 3.19 general reasoning for each project and the Telecom&broadband plans developed by the project committee. reliability 3.82 3.18 Furthermore, the interview results that highlight the need for the project are included Figure 2:Community Factors with High Importance where appropriate. Community members who and High Satisfaction are interested in assisting in any of the Average scores shown projects'implementation should contact one Scale for Importance:1=Not at all,4=Very Scale for Satisfaction:1=Very dissatisfied,4=Very of the committee members listed. Satisfied Priority Project#1:Workforce Connections It was also interesting to note that commuting Event patterns for Vadnais Heights show that 95%of The committee is chaired by Cindy the city's labor force commutes outside of the O'Donovan. Committee members are Ling city for work.Only 374 of the jobs in Vadnais Becker(VHEDC),Karyn Berg(Ramsey County), Heights are filled by people who both live and Nancy Clunis(Fresh Paint),Robert Morse work there. (MidCountry Bank),Steve Moeller(Specialty Manufacturing Company), and Joy Strategic Themes VanderHeiden(Schwing America,Inc.) Four primary themes emerged from an The Workforce Resources Connections event analysis of the interview results and is envisioned as a proactive, "one-stop shop" discussions by the Campus Research Review event where manufacturing leaders can Panel.These themes, called strategies here, connect with key contacts and learn about provide a framework for studying and programs, resources and suppliers that can addressing issues raised in the Vadnais support the attraction of a skilled workforce. Heights BR&E process. Below are the four Many resources exist;however,not everyone identified strategies. knows about them or how they can best 1. Provide Businesses with Support Programs connect with them.The Connections event and Initiatives will provide the missing link between workforce needs and workforce resources. 2. Establish Cohesive Workforce Information from this event will be added into Development/Recruitment Initiatives De I Vadnais Heights BR&E Summary Report 7 the Workforce Resources Promotion Manufacturing Company), and Joy Vander initiative(See Priority Project 2.) Heiden(Schwing America,Inc.). Bob Arvold of Enterprise Minnesota and Kathi Schaff of the Related Research Results for Project#1 Minnesota Chamber also participated in the According to the survey of Vadnais Heights conversation. businesses, 66%stated that they needed In late 2015,the VHEDC hosted a series of training for either workers or managers(See Community Conversations about workforce Figure 3 below). Many businesses cited skilled development where several ideas related to manufacturing training needs,including workforce resources were identified.The design,machine language programming, and VHEDC Workforce Action Committee began technical certification. collecting and soliciting resources that could be valuable for local businesses. Methods for Did not respond 7% communication will include an expanded distribution of the business newsletter(see Priority Projects 5 and 6 below)and a new VHEDC website. Phase 1 of the website was unveiled in August 2016;phase 2 will include No Yes more information specific to workforce 27% 66% resources, including expanded company profiles and a job board. Related Research Results for Project#2 Survey respondents identified Engineers, Figure 3: Do you need training for workers or Scientists and Technicians as the position managers? category most anticipated to grow in the near future.It was also one of the highest rated in In addition,many businesses cited challenges in recruiting engineers/scientists, skilled terms of difficulty to recruit(see Figure 4). manufacturing, and health care professionals, and indicated that they expect the number of employees in these same categories to increase over the next three years. However, only 11%of respondents indicated that they currently use apprenticeships as a way to recruit employees. The VHEDC 2016 Business Guide and Community Profile outlines the Century College Internship Pilot and a job shadowing program with White Bear Lake High School students and a local company. Priority Project#2:Workforce Resources Promotion The committee is chaired by Cindy O'Donovan. Committee members are Ling Becker(VHEDC), Karyn Berg(Ramsey County), Nancy Clunis(Fresh Paint),Robert Morse (MidCountry Bank), Steve Moeller(Specialty MEE Vadnais Heights BR&E Summary Report 8 involves working in collaboration with the City Engineeers,scientists 18% of Vadnais Heights to develop a joint business newsletter(see Project 5).Another vehicle Professional/managerial 18% being explored is a Go Local app.The Skilled manufacturing 18% committee has already begun conversations with an app developer on a product.The Healthcare 16% product being explored has a local Office and... 13% philanthropy.component, as well.It can engage residents, employees, and visitors in Repair and skilled 11% community life while allowing the community and its businesses to promote their Unskilled manufacturing 11% organizations on a mobile/digital platform. Information technology _� 9% Finally, the VHEDC recently launched a new Unskilled 9% website.The website has links to technical Transportation 7% and financial resources for businesses, including information on property availability, Construction ■ 2% DEED resources, and workforce links.The Percentage of Businesses committee intends to use the new capabilities of that website to do a better job connecting Figure 4: Does your company have problems the businesses to the City of Vadnais Heights. recruiting the following? Related Research Results for Project#3 Professional/Managerial and Skilled One of the lowest scores related to retail in Manufacturing employees were also identified Vadnais Heights was"Special events or as difficult to recruit and were ranked among promotions in the shopping area"(see Figure those most expected to increase in number of 5). This score was also lower than those in employees. Currently,the most common other previous BR&E program communities. resource used by local businesses to locate new employees is Internet advertising on job Additionally, over 8,700 workers commute boards(60%of respondents),while referrals from outside of Vadnais Heights.The city has from existing employees was a close second at an opportunity to help these non-residents get 56%.Only 18%of businesses surveyed to know Vadnais Heights better.This could indicated that they currently used a Minnesota build on the strength of the locally owned Workforce Center to help find new employees. businesses,because 80%of Vadnais Heights BR&E respondent businesses noted they are Priority Project#3:Connect workers to locally owned. community resources,amenities,and events. The committee is chaired by Debby Gustafson. Committee members include Ling Becker (VHEDC), Ed Jambor(Lake Area Bank),Robert Morse(MidCountry Bank),Chris Olson(GDO Law),Gerry Urban(Urban's Farm& Greenhouses), and Kevin Whelan(Peoples Bank Midwest). The goal of this project is to find additional ways to connect employees of Vadnais Heights's businesses to the community in which they work. One part of this project 1111 Vadnais Heights BR&E Summary Report 9 Heights and focus on two areas-- Community Internet presence 3.48 Outreach and Economic Development.The Personnel 3.41 plan is to capitalize on the tools already in place and reenergize those with a fresh Parking 3.39 approach. Safety 3.38 Additionally, the team plans to utilize the full Prices 3.27 potential of new investments the city has Customer service ilmiiiimimmemi 3.26 recently made,such as the new city website. Hours-weekend The city and its partner in VHEDC will 3.21 collaborate to implement a newsletter focused Merchandising 3.20 on communicating with the business Hours-evening 3.19 community about the City Council's policy initiatives, opportunities to educate,business Quality 3.10 incentives, and overall quality of life within Exterior atmosphere 3.06 Vadnais Heights. Finally, the team plans to Store hours 2.91 partner with the business community and Traffic flow/signs 2 89 VHEDC to rebrand our city via banners, flowers, and decorations in our City Center Restrooms 2.84 core and on the new street lights. Vadnais Advertising 2.70 Heights has achieved great things in its short history, and a strategic marketing initiative Variety stores 2.69 will help create the city's next chapter. Variety eat 11111111111111M. 2.64 Related Research Results for Project#4 Special events iiimmeimm 2.61 According to businesses surveyed, Vadnais Group advertising 2.53 Heights has a strong community atmosphere. 1=Poor 4=Excellent In fact, 33%of respondents felt that the community atmosphere in Vadnais Heights Figure 5: Rate the following factors about retail in had a positive or very positive impact on their Vadnais Heights business, and many felt that it should be part of a marketing campaign for the city. Although businesses see the community Priority Project#4:Create a marketing plan for atmosphere in Vadnais Heights as a strength, the City of Vadnais Heights. the rating given(0.53)is still lower than other This project is led by the City of Vadnais BR&E communities(1.08 where the scale is 1= Heights in coordination with various VHEDC positive and 2 =very positive). Many committees, such as the Business Retention& businesses indicated that the downtown area Expansion Committee and the City Center in Vadnais Heights was not easily identifiable Task Force Related Research Results for to visitors. Project. A number of respondents commented that The City of Vadnais Heights is riding a wave Vadnais Heights lacks a "main street." of success over the last couple years. The city Additionally, one of the lowest scores related and Vadnais Heights Economic Development to retail in Vadnais Heights was "Special Commission(VHEDC)are looking to capitalize events or promotions in the shopping area." on this recent success by initiating a marketing strategy for the community. The marketing initiative will be unique to Vadnais Vadnais Heights BR&E Summary Report 10 • Priority Project#5:Create a newsletter and critical to the growth and stability of the web page with informational business topics. business over time. The committee is chaired by Kyle Sommer. Did not Committee members include Ling Becker answer_ (VHEDC),Wes Beedon(Peoples Bank Midwest), 7% Mike Enright(Cities Credit Union), Robert Morse(MidCountry Bank), and Gerry Urban (Urban's Farm&Greenhouses). Yes No 51% The VHEDC currently has two newsletters that 42%i are distributed electronically to VHEDC investors and others who have expressed interest in being on the VHEDC mailing list. The committee recognizes that this does not reach all of the businesses in Vadnais Heights, so effort should be made to determine how to Figure 6: Does your company have a written better reach more businesses. business plan? The city currently publishes a quarterly community newsletter that is mailed to all residents and business addresses.In that Not applicable 7% newsletter,there is a section devoted to Did not VHEDC where products made in Vadnais answer Heights are highlighted.The newsletter also 11% highlights development news.The VHEDC Yes 31% newsletters do not reach all businesses.The city newsletter is a broader community newsletter with content that is not necessarily targeted to businesses.One idea is to have the VHEDC and the city work together to produce N o J and distribute a bi-annual business newsletter 51% that would go to all businesses in the city. Figure 7:Does your business have a written The committee may also actively promote transition plan? business resources available on the VHEDC and city website. Continuing to hear what information and resources would be most While 16%of the businesses are exporting helpful from businesses is important.VHEDC directly from their business, they may have will look into a feedback or request form on questions and issues and need assistance in its website. growth of global sales. Of the 71%that are not Related Research Results for Project#5 exporting, 11%said it was due to restrictive Local businesses can benefit from technical state and/or federal regulations.These assistance to strengthen their business businesses may be unclear about how management practices.Over 50%of the regulations truly work and could be guided businesses surveyed do not have a written through the process. Additionally, 2%of transition plan, and over 40%do not have a respondents said they have never considered written business plan(see Figures 6 and 7). exporting,but would like to look into the Both of these planning documents can be prospect. rignig Vadnais Heights BR&E Summary Report 11 1 These are just some of the topics of First, several survey comments described consideration that could be shared with issues with the Fire Department inspection businesses. process. Some question licensing and ordinance policies. Priority Project#6:Establish a task force related to communication between the city Second, some comments indicated that public and businesses. transportation is lacking within the city, and traffic congestion is a challenge. Some cited a The committee is chaired by Debby Gustafson. Committee members include Ling Becker need for more bus routes to improve access (VHEDC),Ed Jambor(Lake Area Bank), Robert for a wider population of workers(e.g. Morse(MidCountry Bank), Chris Olson(GDO disabled, low-income, etc.). Others mentioned Law), Gerry Urban(Urban's Farm& a need for extended route hours for second Greenhouses), and Kevin Whelan(Peoples shift workers. Bank Midwest). Also,businesses rated traffic flow and signage BR&E results indicated that businesses want relatively poorly.This item received the more communication with the city. One idea second-highest number of votes in terms of is to create a quarterly opportunity for "needs improvement,"with 26%of businesses and local governmental officials to respondents noting a score of 1 or 2 on a 4 meet in a Vadnais Heights Business Council point scale with 4 being Excellent and 1 being setting. Meetings could include city updates of Poor. news relevant to businesses. Sessions could While the foregoing are important issues, they also include a speaker on a topic of mutual are just some of the topics of consideration interest with opportunities for discussion. that could be shared with businesses. These business council sessions would provide opportunities for local business leaders to network and to highlight the importance of business community leadership CREDITS and engagement in local decision making. The Vadnais Heights BR&E Task Force selected Related Research Results for Project#6 these priority projects. Monica Haynes and Gina Grensing of UMD's Labovitz School of Several issues mentioned by survey Business and Economics'Bureau of Business respondents could benefit from improved and Economic Research(BBER)prepared this communication between the city and summary report. Michael Darger provided businesses. editing and report compilation assistance. Vadnais Heights BR&E Summary Report 12 ULI Minnesota Regional Council of Mayors MEMORANDUM Key Observations TO: David McKnight, City Administrator FROM: Gordon Hughes and Cathy Bennett,ULI Minnesota DATE: November 20, 2017 SUBJECT: ULI Minnesota Navigating Your Competitive Future Workshop On behalf of ULI Minnesota,thank you for the opportunity to meet with the City Council, EDA, Planning Commission and staff on November 13, 2017. Our ULI MN workshop team enjoyed our dialogue with you and appreciated your hospitality. We also appreciated the time that you spent with us preparing for this workshop. As a follow up to the workshop,we would like to take a moment to summarize some of the key observations expressed during our panel discussion and dialogue. • Data on demographics, employment and jobs in Farmington,presented at the workshop, offered a point of reference for trends that will affect the City in coming years. Please feel free to contact us if you have any follow up questions on the data presented at the workshop or any of the materials which we provided. • Farmington has a number of key strengths and assets to leverage. Farmington's assets include an authentic downtown and abundant land resources. These assets position the City as a competitive place for future development when the market is ready. • The City generally provides a welcoming image to the development community. The City has developed organizational assets such as the City's website which does a great job of providing needed information and resources for the development community. It is easily accessible, highlights important City information and connects potential developers with the right people in the organization. The 30-day review timeline for project consideration is a huge selling point for developers who are used to a much longer schedule. On the other hand, City impact fees appear to be higher in some areas compared to other places—especially park dedication and surface water management fees. There may be excellent reasons for these fees. It's important for the City to tell the story as to why these fees are higher than most. • Developers are attracted to cities where the staff can shepherd them through the process. Every city is unique in terms of approval processes and procedures. A competent and helpful staff can help to avoid surprises for developers that can be deal killers. Farmington's staff has an excellent reputation from a developer perspective. 1 • Farmington's downtown is an important asset and can be a key to the City's future success. A big advantage for Farmington is the intact, authentic downtown. Such downtowns are yearned for by many cities which attempt to replicate them with varying degrees of success. In contrast to some other nearby cities, downtown Farmington is positioned as a place to go to,not through. Cities with successful downtown strategies have developed a clear understanding of their downtown inventory, have identified "catalyst sites"that can leverage further(re)development opportunities and are strategic with their investments in order to maximize their return to the City. Some existing buildings, such as the Exchange Bank Building, may be particularly well-suited to be transformational properties that could spark reinvestment in downtown. • Downtown could be improved by creating better connections to the rest of the community. The county fair is one of the largest in Minnesota and provides an opportunity to connect fair goers with downtown. Better wayfinding signage, landscaping and improvements to the trail and sidewalk system, such as on Akin Road,would help enhance connections to the rest of Farmington. • Housing can provide an important component for downtown vitality. Gen Y and Boomers are attracted to authentic downtown environments, especially those that offer affordable housing opportunities and unique dining venues. Creating a greater residential density in close proximity to downtown benefits retailers and service providers and may be a counter punch to traditional single family neighborhoods in the northwest part of the City. As density grows in the downtown area ensuring that businesses cater to these residents will be important to the vitality of the area with more frequent evening hours of operation and programmed activities. • Retail follows rooftops. Farmington, like most cities in the metro area, is well-retailed, i.e. a broad range of goods and services are available to members of the residents even if those goods and services may not be located in the city. They may be just across community lines or on the dominant routes that take residents to and from work or around town. Retailers tend to pay less attention to community boundaries than to circulation patterns and shopping habits. • Some speculative industrial projects are under construction in the metro area with Eagan, Shakopee and Brooklyn Park leading the way as pockets of strength. Approximately 1.3 million square feet of spec industrial projects are scheduled to be delivered this year. Distribution centers are primarily interested in close-in locations in order to reduce travel times for deliveries. • Speculative office space is not being built anywhere except possibly in downtown Minneapolis. Downtown environments are particularly attractive to companies with a younger workforce who are drawn to housing and entertainment opportunities in an urban setting. 2 • Farmington's commercial numbers: 172 properties comprising 2.3 million square feet. Sixty percent is industrial, 30%retail and very little office. Vacancy rate is very low at 2%which could be a catalyst for new development. • Office and industrial development generally follows transportation corridors and the labor pool. Farmington does not enjoy the same perception of accessibility as other cities that are along major highway corridors. This will likely limit the amount and type of office and industrial development that requires better access and higher densities of nearby labor pools. A recent ULI MN housing forum revealed that the lack of close by affordable housing is affecting business growth and locational decisions of two of our region's major employers—Shutterfly and Fed-Ex. • The linkage between housing and jobs is more important than ever. Walkability and connectivity between housing, employment centers and natural amenities along safe and interesting routes are desired not only by the Next Generation but by older residents and workers. • The Next Generation is often hampered by unstable jobs,large student debt and less certainty about their futures. Therefore, rental housing opportunities may be more desirable than ownership for this group and many may delay investments in real estate compared with previous generations. Affordable rental options provide an opportunity to "try out"a community prior to making the transition to home ownership and with Farmington's first time buyer market the City is in a good position to retain these renters as owners in the future. • New workforce housing with modern amenities can provide a needed component of Farmington's Housing Stock. Today's mixed income housing products are far different from yesterday's "low-income"housing. Cities which have welcomed such developments are pleased with the results. Information provided in http://housingcounts.org/will be helpful to the City for finding resources and best practices associated with workforce housing. • Successful communities develop a clear vision,react appropriately to opportunities, create innovative financial tools and leverage their key assets. Leadership and "consistency of vision"are keys to successful communities, especially the alignment of policy direction between elected officials and staff. Developers' greatest enemies are uncertainty and risk. "Fast no's" are preferable to "slow maybes"from a developer's standpoint. • Developers look for cities that have a partnership approach rather than a regulatory approach. (Re)development is a relationship business. Developers prefer to work in cities where they are wanted and where the elected officials and staff are interested in 3 partnering to accomplish the city's vision. Everyone in the city must embrace this approach if it's to be successful—elected officials, appointed officials and staff. • Successful cities establish priorities and communicate them to the development community. Sometimes cities try to do too many things and accomplish none of them. Successful cities focus on the projects that can be transformational and provide the largest return on investment. They are clear and predictable about their goals and what they are willing to do to accomplish them. They understand reality but aren't afraid to dream big. Successful cities are flexible and find ways to accomplish the bigger picture rather than simply enforcing the letter of the law. • The City's involvement in (re)development can take many forms.It could be financial assistance, it could be marketing initiatives and it could be property assemblage. Whatever the approach, it is important for the City to align available resources and communicate them effectively to the (re)development community. The policies and practices outlined in the ULI MN (Re)Development-Ready Guide will assist the City in establishing(re)development policies and practices that use scarce public dollars to attract private investment, grow jobs, and build tax base for the well-being of your city. • Final thoughts of the panel. The panel concluded the workshop with these final thoughts. o Communicate to the development community that"Farmington's open for business". Jeremy Stripier, Cushman & Wakefield o Reinforce the City's commitment to downtown Farmington and work on connections to it from other parts of the City.Randy Schold,Metro Plains,LLC o Be authentic. Focus on what Farmington is and build on its strengths. Kendra Lindahl,Landform o Prioritize. Don't try to do everything. James Lehnhoff,Ehlers On behalf of ULI MN, thank you again for hosting this workshop. 4 10/16/2019 Benchmark Results What are the three most Important reasons for your recruiting problems? Inadequate labor skills ,s 18% Competition for employees 18% Other '._ ___. 11% Workers will not relocate 9% Poor work attitudes • 9% F(h! Workers will not commute 7% y °;y High wage rates • 7% Compare to benchm•rks: { Workers can't pass screening ;4% <2%lack of childcare t-1 Lack of child care -4% Percentage of Businesses t ' •ia d i Create Visualizations Rate the Importance of and your satisfaction with community factors Leave Alone Celebrate (High Sartd mon/LowImannrre) (High SatWaenon/Hiyh W}attnnal R'"7:;l0lpnsmmnn`.ra<DVirant. •/onietlepaee@an 5ocn8Otlansxanwnaad,�'eenenls••• emmomm�@amoelw Atallatens'ot[.cans-• Cammu•el}Ae nesse Tow'Ydc• •HGnezLGuaoa ' Ouvmsa • Cosrmloam ••EM Hcao Satuf �¢ Tetivural Ttalnmg Post ..fraa9mel oe""" "1 }:d.aC n'f O? ._..... ._.___._ ...__._...._ _--......__..._. _-.__.._..._.. • _..... .•. BLt'cU. f,4�a4....__.._ Coilc Fn(mttmem •@oadbMdSpad • eragr Talry • lndtet.rmaaci$uanaEmem :n SMXeCostMEUClslags •hautNn'to RH1'Hatenak •Mouc•Kbl4prawltts } •t'mro 7Resaau C..""•0i lroadba@IRtRablbr .ieallabdn}•oI CmYIDedLlOot.—..• peafuNhry'at @tadlpds•_'• V. HcmulyCmn•.,xrwdna•¢dcost • •FJnp;ol'eanese Cale Cotei •Heaskliw$i• g •RaahoadsmRe •lm@KS iottmnn `vrS Monitor Take Action Mlrfiustartean/Low Iwo,lme') (Low Sufacnon/M O amnntance Importance •,s.-awn:mmcmu tnr Heantmpmeaarce l.tp 11 10/16/2019 Create Visualizations Rate the importance of and your satisfaction with community factors Celebrate Quadrant 33 •K-12 Education •Recreational Opportunities •Fire Department 3a •Highway Acatsibilty Sewer&Water•—• •Police Department •Network Battle lake •Energy Reliability Social Organizations and Networks • Community Promotion of Itself and Business 3.4 Availability of Loans-• • t Community Attitude Towards Business Health Care Facilities •Cost of Loans •�� e— s2 Cultural OPpurtunitles Street Maintenance &rrwd B t nraanl lc••sic tenant Planning and Zoning •- Economic Development Authority v •AvaitabBltyof land Umveusrry to tvhnsrs cv lhwits 3.0 3.0 32 3.4 34 3.11 40 Create Visualizations Rate the importance of and your satisfaction with community factors Take Action Quadrant so 'Energy Cost(Electric,Natural Gas) Broadband Speed •Availability of Skilled Labor /_ Budget Process&Financial Management Availability of Buildings •Cost of Buildings •— Telecommunications o &Broadband._ 1 • Cos<ofr . 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The City will be informed by the Dakota County Community Development Agency(CDA)on Thursday, November 21st what our estimated allocation will be for Program Year 2020 (July 1, 2020—June 30, 2021). In 2019 we received $39,549 in Community Development Block Grant(CDBG)funds and anticipate a similar amount for 2020. To secure the grant money that is available,the city must prepare and submit an application that specifies eligible activities or projects to which the city intends to allocate the available funding. A completed application is due in January accompanied by an approved City Council resolution. The final allocation amount may change as HUD finalizes their budget process over the next several months. DISCUSSION Proposed Activities City staff is proposing that the estimated $39,000 be allocated between two activities for 2020: $34,000 for the Residential Rehabilitation/Home Improvement Loan Program $5,000 to Senior Services—Financial Support Program. Home Improvement Loan Program The Home Improvement Loan Program is a program administered by the CDA to benefit low/moderate income households in Farmington making eligible improvements to their homes.This program was funded last year and grants us the maximum opportunity to benefit a wide audience in Farmington and meet HUD's spenddown requirements in a timely manner. Some program details include: The Home I mprovement Loan Program assists low-and moderate-income homeowners with making repairs and improvements to their homes. Home Improvement Loans are commonly used for: • Roof replacement • Furnace replacement • Electrical and plumbing repairs • Insulation • Improvements for special needs, such as ramps, bathroom or kitchen modifications Home Improvement Loans feature: • Zero percent interest • No monthly payments • Repayable when ownership changes or you move from the property.You may be required to repay the loan if you refinance your home or take out a home equity loan. • $15,000 loan minimum;$25,000 loan limit As noted in the adopted Highway 3 Corridor Plan, staff recommends a targeted mailing to properties in this area of the community that could utilize the program. Senior Services—Financial Support Program Approximately seven years ago,the Senior Services—Financial Support Program was initiated with CDBG dollars to help underwrite and expand senior programming. This lump sum is nearing the end of its funding and the Rambling River Center is requesting a renewed $5,000 allocation for Program Year 2020. The basic program outline is as follows: The Rambling River Center(Center) is committed to providing quality programs and services,while encouraging the involvement of adults over age 50. The Center is requesting continued funding for the Financial Support Program which currently offers low to moderate income persons the opportunity to do the following: • Participate in programs and services by removing the financial barrier to do so. • Increase the health and wellness in older adults through participation in programs that focus on these two areas. Increase the revenues that are received at the Rambling River Center and make it less dependent on local taxpayer subsidy. Provide a support network that fosters a sense of community and camaraderie for older adults. Provide access to leisure programs that feature traveling to cultural events and other communities. Helps to keep older adults active in order to continue to maintain independence while increasing their social network. Through this funding, people were able to access the Center who may not have had the means to do so previously.Through their involvement people were able to try new classes, programs and trips while creating companionships along the way.Through continued funding of this program the Center hopes to continue to provide access to those who cannot afford it on their own. The above activities compares to the allocation below from 2019: $13,961.50 for the Commercial Rehabilitation Grant Program $5,000 to Senior Services—Financial Support Program $20,588 for the Residential Rehabilitation/Home Improvement Loan Program Staff recommends not allocating additional dollars to the Commercial Rehabilitation Grant Program for 2020 due to two factors—a healthy program balance, and the increasingly restrictive use of the those dollars. A current budget status report from the Dakota County CDA is attached for reference. ACTION REQUESTED Recommend the City Council approve a resolution to allocate an estimated total of$39,000 in CDBG funds for PY2020 to Senior Services—Financial Support Program ($5,000), and Home Improvement Loan Program ($34,000)funding categories. ATTACHMENTS: Type Description D Exhibit CDBG Program Balances Report 0 0 o O >, CO CO CO O .fl >, Ch o o n O C > r U U Q.) 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C @ O y C CD v «- C O U m E a) O@ o _ in a _ CO U .> J - CO LU a)0 U C _0 a) U O a 0 U O Q a) @V) H W @ 0 0 � C C .-. t L Lu @ ti y, C O a) @ U C7 x a C rn J J a p .` >, O W C a y C 0 Z E °' s m Z LL u) u) E cL a) E Q Q U ayi c' -y LL LL< o o n O O W 0 >- E = 0 0 H H a Z u. H CITY OF 0430 Third St., Farmington, MN 55024 FARM I N GTO N © 651-280-6800 ��� O FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: City Council Update DATE: November 21, 2019 INTRODUCTION/DISCUSSION This is a standing agenda item to allow City Council members the opportunity to provide the EDA with any updates they feel are pertinent to the work plan of the EDA. ACTION REQUESTED Receive an update on recent City Council actions or discussions. CITY OF 0430 Third St., Farmington, MN 55024 FARMINGTON © 651-280-6800 . ® FarmingtonMN.gov TO: Economic Development Authority FROM: Adam Kienberger, Community Development Director SUBJECT: November Director's Report DATE: November 21, 2019 INTRODUCTION/DISCUSSION Board/City Council Reception The EDA is invited to a year end meeting and reception with the City Council on Thursday, December 5, 2019 at 6:00 p.m. at Bourbon Butcher. The meeting will include a summary of the work that was done this year by each group. Staff will discuss an outline of content to be included in this summary. EDA Chair Hannah Simmons will then provide this update to the City Council during the December 5 meeting. Riste Lot Update Homestead Community Church is progressing with their improvements to their property in downtown Farmington and has expressed a renewed interest in acquiring the Riste Lot owned by the EDA. Staff is currently working on a contract for private development that will be brought to the EDA at an upcoming meeting. 2019-2021 Strategic Plan for Economic Development An updated status of items in the 2019-2021 Strategic Plan for Economic Development will be provided on a monthly basis.The plan and summary sheet are attached. EDA members should review the plan on a regular basis. Related Articles Farmington's only grocery store Family Fresh will close Dec. 20—Sun Thisweek DEED Employment Report NEXT MEETING With the joint boards/commission/City Council meeting scheduled for December 5, I recommend we hold our next regular meeting on January 23. ACTION REQUESTED None,this report is intended to be a monthly update on various development and industry related topics. ATTACHMENTS: Type Description Farmington's only grocery store Family Fresh will D Exhibit close Dec. 20- https://www.hometownsource.com/sun_thisweek/ D Exhibit DEED Employment Report-October D Exhibit Strategic Plan Summary and Status Report 11/18/2019 Farmington's only grocery store Family Fresh will close Dec.20 I Free I hometownsource.com https://www.hometownsource.com/sun_thisweek/free/farmington-s-only-grocery-store-family-fresh-will-close- dec/article_ef16fb80-0794-11 ea-810c-634155f49e45.html FEATURED Farmington's only grocery store Family Fresh will close Dec. 20 By Kara Hildreth Nov 15, 2019 Updated Nov 15,2019 �� 4 `„ � „. _ ,,,, , _ 1 ( i , / si ., , _i ` i, . _. 44, _.. 4... ........„. Pharmacy closes Nov. 19, prescriptions moved to CVS Pharmacy Family Fresh Market-the only grocery store in Farmington -will close its doors Dec. 20 and the store pharmacy will close Tuesday, Nov. 19. The grocery market is located in the heart of downtown at 115 Elm St. The shopping center houses many small businesses, a restaurant, and will be the new site of the U.S. Post Office store front that plans to open to the public next month. https://www.hometownsource.com/sun_thisweek/free/farmington-s-only-grocery-store-family-fresh-will-close-dec/article_ef16fb80-0794-11 ea-810c-634... 1/4 11/18/2019 Farmington's only grocery store Family Fresh will close Dec.20 I Free I hometownsource.com "SpartanNash and our Family Fresh Market stores have proudly served the Farmington community for many years. Recently, we made the difficult decision not to renew our lease and we have announced to our associates that we will be closing the Family Fresh Market," said Meredith Gremel, vice president of corporate affairs and communications. "Our final day of operation is scheduled for late December. This closure is a business decision based on our continuous evaluation of our retail footprint and what is best for our more than 155 corporate-owned stores, our associates and the communities we serve," Gremel said in a statement. "While it is never an easy decision to close a store,this is not a reflection on our dedicated associates or their commitment to serving our customers," she added. The company is now working with its 50 full-time and part-time associates to offer them employment in surrounding stores in nearby communities, Gremel said. The Family Fresh Market store location in Hudson, Wis., plans to close its doors tomorrow on Saturday, Nov. 16. The company would not comment on how many Minnesota grocery store locations will close. The Farmington community voiced sadness and frustration on social media when news broke of Family Fresh closing since the store employs local residents and serves as a full grocery market offering fresh produce and meat. Many local residents rely on this grocery store, including seniors who live a few minutes away from it. Others who do not have access to cars can easily walk to the store. Family Fresh has also offered special prices for seniors each Wednesday. In recent years, Hy-Vee and Aldi grocery chains announced plans to build new stores and purchased land in the Vermillion River Crossings commercial development located off Highway 50, a few miles west from Family Fresh. Aldi announced plans at a Farmington Planning Commission meeting that this global grocery company would open a new store by Thanksgiving 2018, although no groundbreaking has taken place. https://www.hometownsource.com/sun_thisweek/free/farmington-s-only-grocery-store-family-fresh-will-close-dec/article_ef16fb80-0794-11 ea-810c-634... 2/4 11/18/2019 Farmington's only grocery store Family Fresh will close Dec.20 I Free i hometownsource.com Leadership at Farmington city hall confirms its staff engages in continued communications with both grocery chain giants and plans are still in the works. The city said it touches base with the Iowa-based Hy-Vee company and the German-based Aldi corporation on a regular basis. Family Fresh Market is owned by SpartanNash, a Fortune 400 company whose core businesses include distributing grocery products. SpartanNash serves customers in 50 states and the District of Columbia, Europe, Cuba, Puerto Rico, Bahrain, Djibouti and Egypt. SpartanNash currently operates 158 supermarkets, primarily under the banners of Family Fare, Martin's Super Markets, D&W Fresh Market, VG's Grocery, Dan's Supermarket and Family Fresh Market. A SpartanNash press release dated Aug. 12, 2019, announced a leadership transition when Chairman and Former CEO Dennis Eidson was appointed interim president and chief executive officer. This leadership change took place after Dave Staples resigned. Eidson announced a decision to exit the Fresh Kitchen Operations in August. Eidson served as the CEO from 2008 to 2017 and served as SpartanNash's president and COO as well as the executive vice president of marketing and merchandising. "The Board remains confident in the Company's strategic direction and its ability to generate top line growth; however, execution has fallen short of our expectations and we believe that now is the time for a leadership change," said Douglas Hacker, lead independent director of the board. Nash Finch started as a family-owned business in 1885 when brothers Fred, Edgar and Willis Nash opened a small candy and tobacco store in Devils Lake, North Dakota. The first non-family employee, Harry B. Finch,joined the Nash Brothers as a 14-year old stock boy in 1889 and worked his way up in the organization. In subsequent years the company became known as the Nash Finch Company with Harry Finch as the company president. Check back today and this week for more information on the store closing and how its closing will affect the community. More information will be shared about this developing news story after communications with SpartanNash corporate. Kara Hildreth Farmington reporter https://wwwhometownsource.com/sun_thisweek/free/farmington-s-only-grocery-store-family-fresh-will-close-dec/article_ef16fb80-0794-11 ea-810c-634... 3/4 Adam Kienberger From: DEED Communications <MNDEED@public.govdelivery.com> Sent: Thursday, November 14,2019 10:03 AM To: Adam Kienberger Subject: Minnesota Unemployment Holds at 3.2% Follow Up Flag: Follow up Flag Status: Flagged InnAND ECONOMIC DEVELOPMENT PRESS RELEASE For Immediate Release Contact: November 14,2019 Eric Lightner Previous Announcements 651-259-7149 Media Resources eric.lightner@state.mn.us Oriane Casale 651-259-7383 oriane.casale@state.mn.us Minnesota Unemployment Holds at 3.2% Labor force participation rate ticked up to 70.3% while the state added more than 7,000 new jobs St. Paul—According to data released today by the Minnesota Department of Employment and Economic Development(DEED)the seasonally adjusted unemployment rate held at 3.2%in October.The national seasonally adjusted unemployment rate for October increased to 3.6%. 1 Minnesota added 7,400 jobs in the month of October. Meanwhile, September's employment growth was revised up to 1,600 jobs. "There continues to be a high demand for workers in the state," said DEED Commissioner Steve Grove. "While this is good news for workers, it means we need to do more to ensure Minnesota businesses have the employees they need to thrive, and that we are helping Minnesota workers prepare for in-demand occupations." The state's labor force participation rate rose a tenth of a percent to 70.3%and the employment-to-population ratio increased to 68%, the highest it has been since 2008. Over the month, five industry sectors gained jobs. Leisure and hospitality gained the most (up 4,900)followed by trade,transportation and utilities (up 2,500), manufacturing (up 1,300), construction (up 800) and government (up 200). Sectors losing jobs over the month include information and financial activities, both down 1,000 jobs. Over the month the Minneapolis-St. Paul Metropolitan Statistical Area (MSA) was the only MSA in the state to lose jobs (down 908). Rochester added the most jobs in October(up 1,268). Visit the DEED website to see DEED's alternative measures of unemployment. Seasonally Adjusted Not Seasonally Adjusted (NSA) Unemployment October 2019 September 2019 October 2019 October 2018 Rate Minnesota 3.2 3.2 2.5 2.2 U.S. 3.6 3.5 3.3 3.5 2 September'18 September '18 Employment October 2019 September 2019 '19 level of '19% level of Change Change Minnesota 2,972,000 2,964,600 12,575 0.4 U.S. 151,945,000 151,817,000 2,205,000 1.5 MN Annual Job MN Annual Growth US Annual Growth Change Rate Rate Total nonfarm 12,575 0.4 1.5 Total Private 10,961 0.4 1.5 Logging and Mining 220 3.2 -1.2 Construction 4,276 3.2 2.7 Manufacturing 881 0.3 0.2 Trade,Transport. 2,982 0.6 0.0 and Utilities Information -3,610 -7.4 2.1 Financial Activities 2,588 1.4 1.2 Prof. and Business -4,602 -1.2 2.0 Services Ed. and Health -5,666 -1.0 2.8 Services Leisure and 13,825 5.1 2.4 Hospitality 3 Other Services 67 0.1 1.0 Government 1,614 0.4 1.2 Metropolitan Statistical Annual Employment Annual Employment Area Change (#, NSA) Change (%, NSA) Minneapolis-St. Paul -908 0.0 MN-WI MSA Duluth-Superior MN-WI 1,080 0.8 MSA Rochester MSA 1,268 1.0 St. Cloud MSA 780 0.7 Mankato MSA 935 1.6 DEED is the state's principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more information about the agency and its services visit the DEED website or follow DEED on Twitter. Monthly Jobsort Report DEED also released a summary video of this month's unemployment numbers on the DEED YouTube page. 4 t 0 0. (1.) 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