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HomeMy WebLinkAbout06.23.08 EDA Packet - with notes . AGENDA ECONONOCDEVELOPMENTAUTHORlTY June 23, 2008 - 7:00 p.m. Citv Council Chambers. Citv Hall Members 1. Call Meeting to Order (7:00 D.m.) Chair David Pritzlaff 2. Pledge of Allegiance Steve Wilson ..~& 'x , ft~,~ 4. Citizens CommentslPresentations )&J /ci9 a. EGC Strategic Plan YI~ 5. Consent Agenda (see attached) t:l' a May 27, 2008 EDA Meeting Minutes b. May Budget Details ......, Vice Chair Christy Jo Fogarty 3. Approve Agenda David McKnight Kevan Soderberg Peter Herlofsky City Administrator 6. Public Hearings (None) 7. Continued Business a. Downtown Update (Tina) b. Exchange Bank: Building, update to be provided at the meeting (Lisa) c. Industrial Development Strategy (Lisa) .itv Staff Representatives Tina Hansmeier Economic Development Specialist 8. New Business a. 308 Elm. Street (Tina) b. ED Chapter Activity Update (Lisa) c. Meeting Schedule (Tina) 9. City Staff Reports a. Economic Update, see attached b. Downtown Idea Exchange, see attached . J&- (t Y I1lq?t,1 Arc ~-cI:vr 10. AdJo~rn U Lisa Dargis Administrative Assistant 325 Oak Street Farmington, MN 55024 Phone: 651.463.7111 http://www.cLfannington.mn.us . The Farmington EDA 's mission is to improve the economic vitality of the city of Farmington and to enhance the overall quality of life by creating partnerships, fostering employment opportunities, promoting workforce housing and by expanding the tax base through development and redevelopment. K:\ ".'1'\, .~~"i'!..-\(i~ /\f'~ ""fl "'23C"s::~~- ~.~ . . . DrIving the New Agenda fot BusIness ~~~~~!YJ~~5.1l9.t~]9J CHAMBER OF COMMERCE FARMINGTON AREA ECONOMIC GROWTH COMMITTEE STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT 2008 - 2010 ECONOMIC GROWTH . The Farmington Economic Growth Committee is a public/private economic development organization promoting business interests in the City of Farmington and surrounding townships. The Committee's mission and goal is to enhance the economic vitality of Farmington and maintain its outstanding quality of life through the retention and expansion of existing businesses, and to attract new businesses to the community and surrounding townships. The Committee's board of directors includes representation from leaders in the business community as well as the City of Farmington, School District 192, Dakota County Regional Chamber of Commerce, and surrounding Townships. The Farmington Economic Growth Committee serves to promote, enhance and further strengthen the Farmington economy through the development of strategic planning efforts, act as an advisory body to the Farmington City Council and Economic Development Authority, as well as the surrounding townships boards of Castle Rock, Eureka and Empire. The Committee's goal is improve the economic vitality and wealth of Farmington through the retention and expansion of existing businesses and attraction of new businesses to the community and surrounding townships. The 2008 - 2010 Strategic Plan for Economic Development begins a thoughtful and organized . planning for the economic future of Farmington and the surrounding townships. The Strategic Plan focuses the efforts of the business community and governmental bodies to achieve their efforts and accomplish tangible results. The Strategic Plan will be presented to each governmental body to unify the efforts, receive input to the level of commitment for economic growth along with the development of a single effective platform about economic development. . . PURPOSE of STRATEGIC PLANNING . . The Farmington Economic Growth Committee has participated in a process of discussion and identifying key strategic elements that affect the future economic vitality of the City of Farmington and surrounding townships. The Strategic Plan for Economic Development shall be a written three year plan that guides work of the EGC, elected officials, and Economic Development staff ofthe City of Farmington and surrounding townships in achieving the economic growth objectives desired. In order to develop a living plan, it is imperative to have open communication between the business community and the elected officials of the city and townships, city and township staff. The Farmington Economic Growth Committee identifies the following goals in the process of the developing the Strategic Plan for Economic Development: 1. That the strategic plan be consistent with those established by the City Council and township boards and, 2. Take a proactive and aggressive approach to economic development and redevelopment that focuses efforts, including promoting the . Creation of high quality employment that provides opportunity and prosperity for area residents, coupled with promotion and retention of businesses and entrepreneurship . Identifying development of land for business, office and industrial parks through partnerships with land owners and developers . Development and redevelopment of historic downtown Farmington along with the enhancing the ambiance and marketing the retail sector downtown. The Strategic Plan for Economic Development will develop based on strategic areas that the Farmington Economic Growth Committee has identified. This plan is to be based upon EGC's synthesis of the output from recent assessment and target industry studies completed by other consulting firms within the context of its own research and experience in business location and economic development consulting. The strategic plan shall recommend a clear course of action for Farmington and the surrounding townships to follow in economic development for the next three years. The strategic plan also shall include a business perspective and assessment of the area's assets and challenges (SWOT analysis) as they effect economic development. 2008 - 2010 Strategic Plan Goals and Outcomes . The EGC, city, townships and other organizations should emphasize economic development in aU business sectors. This effort should be accomplished through business attraction, business expansion and entrepreneurial development programs. These programs should be done in conjunction with a strong image-building and marketing campaign. General image enhancement will be important in marketing the area to the rest ofthe county, the region, then the world. The image should not be touted too strongly based on lower land costs or lower labor costs, but rather as an environment for sophisticated, profitable office, manufacturing, technology and distribution operations. In balance, an image that shows an area with significant advantages for developing its own "homegrown" businesses. The message must be stated and supported that Farmington area and surrounding townships are an excellent location for business that offers a more "profitable operating environment" than the other metro areas offering Farmington's affordable land costs, excellent quality of life, low cost of living and quality labor force. Farmington and the surrounding townships need to focus on several fundamental issues of economic transition as well as important preparative steps before it can realize its potential as a dynamic, regional economic center. The area should encourage economic development that builds on existing strengths and under-utilized assets. Three strategic areas and supporting goals were identified for the 2008 - 2010 Strategic Plan for . Economic Development. Industrial Development Goals 1) Advocate for additional land to become available in an orderly progression west of Pilot Knob and north ofHwy 50. 2) Participate in the development of incentive funds, GAP financing and other economic tools for development with staff and elected officials. 3) Promote and participate in development of area design standards for development and redevelopment of city and townships borderlines. 4) Participate with city staff and township boards and their staff to develop a streamlined approach for development. 5) Land development along rail/south of County Rd. 70 to Ash Street. 6) Advocate for commercial business south of Ash St. adjacent to Progressive Rail line. Transportation Goals 1) Facilitate agreements to open Spruce Street at Hwy 3 to further expansion and . future development of Spruce Corridor. . . . 2) 20gth Street a. Complete the portion of the road west of Pilot Knob into identified land for future commercial and industrial development b. Engage conversation and determine feasible timeframe for completion east of Middle Schools to Hwy 3. 3) 15t Street North to Diamond Path a. Engage in study to determine feasibility of connecting 15t Street North to future Diamond Path Road. 4) Advocate for extension of County Road 70 from Cedar Avenue East to Hwy 52, south of the fairgrounds. 5) Development of Rail as an asset to future development of heavier industrial based businesses along County Road 70. 6) Participate in the development of Transit to Farmington, with consideration to making the right investment, involving stakeholders in the decision making process. Downtown Goals 1) Promote economic viability while retaining its unique and historical characteristics. 2) Participate in determination of future use of the city hall located at 4th and Oak. 3) Facilitate process to focus on the future of downtown, the desired redevelopment including design standards, and the image that should be marketed. 4) Advocate for redevelopment on McVicker and Riste lots, facilitating process to identify opportunities and market. 5) Work with building owners to develop campaign to fill storefronts. 6) Address incubator type of system for downtown to facilitate "homegrown" retail and office businesses 2008 - 2010 Work Plan The 2008 - 2010 Work Plan will be developed and prepared based on a year to year process. The Farmington Economic Growth Committee shall facilitate a process in which the work plan will be developed. The participants in the process shall include the Farmington Economic Growth Committee, elected officials, city staff, township board members and township staff and other organizations as identified through the process. The Work Plan will be submitted to the City Council, EDA, City Staff and township boards. Upon acceptance, the Work Plan shall be reviewed by government bodies and reported returned identifying the viable areas of work that each entity can support for the overall economic vitality of Farmington and surrounding townships. . . . MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting May 27, 2008 1. Call Meeting to Order The meeting was called to order by Chairperson Pritzlaff at 7:00 p.m. Members Present: Pritzlaff, Fogarty, McKnight, Wilson Members Absent: Soderberg Also Present: Tina Hansmeier-Economic Development Specialist, Lisa Dargis- Administrative Assistant, Peter Herlofsky-City Administrator, Michelle Leonard, Nick and Stacey Schultz, Laurie Brausen, Craig Rapp, Jackie Dooley 2. Pledge of Allegiance 3. Approve Agenda MOTION by McKnight, second by Wilson to approve the agenda. APIF, MOTION CARRIED (Member Fogarty was not present for this vote). 4. Citizen's Comments/Presentations 5. Consent Agenda a. April 28, 2008 EDA Meeting Minutes b. Bills c. April Budget Details MOTION by McKnight, second by Wilson to approve the consent agenda. APIF, MOTION CARRIED. 6. Public Hearings None 7. Unf'mished Business a. Downtown Public Space Improvements have been made to the vacant property in downtown Farmington commonly referred to as the McVicker Lot. Picnic tables were added and garden areas were created to make the space more usable and enjoyable for visitors to the downtown area. Materials were both donated and loaned from The Farmington Greenhouse and The Landscape Depot. Staff extended their thanks to these businesses as well as to local resident Jackie Dooley who designed the garden areas and volunteered her time to implement the planting. i. Certificate of Appreciation - Jackie Dooley Certificate presented by chairperson Pritzlaff. ii. Sale Price of Property EDA Minutes May 27, 2008 Page 2 . The property was acquired through tax forfeiture so the lot must be sold at fair market value. There are assessments on the property which will either need to be paid by a potential purchaser or that could be waived and paid by the EDA as a business subsidy. MOTION by Fogarty, second by Wilson to approve the sale of the lot at fair market value and waive the assessments as recommended by staff APIF, MOTION CARRIED. b. Riste Lot The Riste building was demolished last fall and the lot is currently a sand base. Staff is looking into options to establish grass on the site. Not all of the quotes have been received for seeding and additional quotes are being sought for sod. Staff would like to continue researching this item. Chairperson Pritzlaff asked if there was a potential to tie this item into the reseeding for the Elm Street project for areas where the grass did not establish. Staff will look into this possibility although Dakota County is ultimately responsible for the Elm Street project so they will most likely be coordinating the boulevard reseeding there. Member Wilson stated that he is not in favor of spending a large amount of money to improve the vacant lots. He also asked if in the future we should consider whether or not to perform a demolition on this type of property or to just market the property as is. Member Fogarty stated that she would like to see the grass established before Rambling River Days. Staff will attempt to have the grass established before that time and City Administrator . Herlofsky will determine if the price is appropriate. c. Exchange Bank Building Staff provided an update on the progress of the renovation work at the Exchange Bank Building. The Building Official stated that the remaining work appears to be approximately 50% completed. Staff verified that the EDA's intent was to direct staff to file the warranty deed if the deadline is not met and a fmal inspection is not passed by Monday morning at the latest. The EDA gave their consensus that this was their desired response. d. Design Standards The examples of design standards that were provided by staff in March are being forwarded to the Planning Commission and the Historic Preservation Commission for their review. It is the intent to have these two groups lead in the development of design standards for the proposed Downtown Commercial District. Member McKnight stated that he would like to have the Downtown Business Association provide input as well. Staffwill be looking at options to obtain feedback from the Downtown Business Association and also the Economic Growth Committee. e. MetroMSP Website Staff provided a brief demonstration of the new website. . 8. New Business . EDA Minutes May 27,2008 Page 3 a. Craig Rapp Analysis In follow up to the lCMA Peer Team strategic planning meeting that was held in January of2007, Craig Rapp returned to provide an assessment ofthe progress that has been made thus far. He stated that the six areas that were identified are being addressed or are completed. The Business Outreach Program and the Economic Update Newsletter were identified as examples ofthe type of activities that have proven very successful. The identification of the top three priorities and the creation of the Comprehensive Plan Chapter were discussed pertaining to Task 1. The completion of the Market Study addressed Task 2. Task 3 was completed with the Comprehensive Plan update. Staffmg capacity was discussed in relation to Task 4 and Mr. Rapp stated that he felt that this area was on track due to additional and continued training of existing staff. Successful unification of all groups behind the Economic Development Strategy was exemplified in the cooperation between the EDA and the EGC and in the transition to the City Council serving as the Economic Development Authority. Mr. Rapp pointed out that Task 6 has been addressed but will need continued focus. He pointed out the importance of ongoing attention to fmancial incentives and resources. . b. Industrial Development Strategy This item is a continuation of the discussion that began last month. An initial meeting with staff and the identified consultants was held to discuss desired outcomes for industrial park expansion. The consultants then held a meeting to discuss creation of the work plan and cost estimates. Staff distributed a breakdown of cost estimates for the initial phase of negotiations and meetings with land owners. There will be additional information compiled pertaining to costs and time estimates for the second phase of land assembly and preparation once negotiations have begun. c. Downtown Advertising Sign Staff would like to look into possible replacement of the EDA owned downtown advertising sign. There is the possibility of potential cost sharing with other City departments if they are able to advertise events on the sign. The current sign is outdated and underutilized and there is limited interest from the business community in renting advertising space. The current sign is located on a City owned parcel and therefore offers some options that may not be possible in a right of way area. The EDA mentioned that they would be interested in also replacing the sign located on Spruce and Denmark that is currently used by the Park and Recreation Department. Staff will create an RFP to solicit cost estimates for replacement of the sign. Member Fogarty pointed out that it would be preferable to make sure that any new sign be consistent in design with the other city monument signs. The EDA gave consensus that they would be in favor of getting estimates via RFP. . Mr. Nick Schultz stated that the current sign is not noticeable due to its design and the sight line with the railroad crossing. He stated that he feels that business owners EDA Minutes May 27,2008 Page 4 . would be more interested in using the sign if it were replaced with an LED message center. d. Draft Business Guide Staff has created a draft business guide that could be used to give to visitors to Farmington. The guide identifies Farmington businesses by category and provides location and phone number information. The guide could eventually be developed into a complete visitor's guide with advertising space availability. Staff feels that it is important to have a publication that includes all businesses without additional fees or a membership requirement. 9. City Staff Reports a. Economic Update Information received. b. Downtown Idea Exchange Information received. c. Inquiries List Staff distributed information on recent contacts that have been received regarding economic development. . 10. Adjourn MOTION by Fogarty, second by McKnight to adjourn. APIF, MOTION CARRIED. Respectful _ submitted, // // // - /.- ~/'L "'- - L-._ - .__,-- I -. -,--- - -e'l /"- <::::7 -/--\ Lisa Dar~ ~\ { Administrative ASsidant \ ~'-------" . . . CIl ;; '" -g III " .~ "~ '" ~ c "~ .. 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S2S2e>> ::::::~ iijicn ~COT"" "''''''' .,'" -~ "'<Xl'" "''''.... .,"'''' ~ai ~ <Xl ~ <Xl....., ....0... <Xl'" 0~<Xl "'o~ "'''' r:tJR-.:f ~ ~ '" 10 ....'" 1'j;)l; ~C")w o o 0_ o'! ~ o '" i '" '" o o ., .,. ~ 06 ... .,. ~ ,.: ~ .,. .... '" '" ,.: <Xl ., .,. ~ Ii ., .... '" '" ,.: <Xl ., .,. .... '" '" ,.: <Xl ., 10 '" Ii ., .,. ~ Ii ., ., <Xl '" ... .... '" '" ,.: <Xl ., 8 't ... '" '" o '" ., <Xl '" '" ~ ~ ....- o ... .,. <Xl ~- '" <Xl .... ~ ... .,. ~ ;;- ~ '" b ~ :e j'!j w = i ~ o ~ :I: ~ ~ [ 10: o. .2 CI E. o u c c 8 .~ ~u. ~~ ~~ '" '" '" 06 ~ ., .,- ~ .,. o o '" 06 .... o " .. ;; m " " " LL .,. ~ .... . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: Downtown Update DATE: June 23, 2008 INTRODUCTION /DISCUSSION The Public Space, formerly referred to as the McVicker lot, has been improved and sod has been installed on the Riste lot. All work was completed prior to the start of Rambling River Days. Downtown Public Space Riste Lot . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECC: Industrial Development Strategy DATE: June 23, 2008 INTRODUCCION Staff is providing additional cost estimate information for industrial park development strategies. DISCUSSION Attached are additional cost estimates for Phases 1 & 2 of the industrial park expansion work plan. Staff requested additional figures in order to more accurately estimate possible budget impacts for 2009. It is understood that these estimates are broad and could be impacted significantly by the level of success achieved in the City's initial negotiations with land owners. ACTION REQUESTED This item is for information only. Lisa Dargis, Adm' . rative Assistant . May 27, 2008 Mr. Peter J. Herlofsky City Administrator 325 Oak Street Farmington, MN 55024 Re: Industrial Park Expansion City of Farmington Bonestroo File No.: 141-08304-0 Peter, The consultant team of Bruce Maus, Joel Jamnik and Lee Mann met on Friday, May 23 to coordinate an approach for moving forward with the City's desired Industrial Park expansion. . In general, the following steps are recommended: 1. Meet with property owners and identify those willing to enter into an agreement for development of the Industrial Park. 2. When willing owners and available parcels are identified, develop concept layouts for roadways, infrastructure and parcels. Perform preliminary cost estimates for the associated infrastructure. Perform land appraisals as necessary. 3. Finalize agreements with property owners. 4. Market the project. 5. When viable projects and willing investors are identified, the development contract and platting process commences. As part of the first step, it is recommended that property owners be contacted and initial discussions and negotiations commence. The time frame to accomplish this initial phase of Step 1 will likely take a minimum of 90 - 120 days. Lee Mann would take the lead on contacting and . 2335 Highway 36 W St. Paul, MN 55113 Tel 651-636-4600 Fax 651-636-1311 www.bonestroo.com Bonestroo st. Paul St. Cloud Rochester Milwaukee Chicago City of Farmington Industrial Park Expansion Page 2 May n 2008 meeting with the property owners. This task would be completed on an hourly basis at the rate previously identified. Once Step 1 is completed, a more detailed proposal for Step 2 can be formulated and the costs associated with accomplishing Step 2 will be forwarded for the City's consideration. If you have any further questions, please do not hesitate to contact me. The first step of contacting the property owners can be started immediately following the City's authorization to proceed. Bruce, Joel and I look forward to assisting Farmington in this endeavor. Sincerely, BONESTROO ~ frt/Y1~ Lee M. Mann, P.E. Principal copy: Bruce Maus, Maus Group Joel Jamnik, City Attorney file . . . . Farmington Industrial Park Work Plan Phase 1 - Estimated Costs Jun-08 Project start up coordination and Pre-Contact Consultation Hours Rate Cost Joel Jamnik 1.5 $ 150.00 $ 225.00 Bruce Maus 1.5 $ 260.00 $ 390.00 Lee Mann 2.0 $ 129.00 $ 258.00 1 st meeting with Devney's Lee Mann 3.5 $ 129.00 $ 451.50 $ 1,324.50 Jut-DB Pre-Contact Consultat;on Hours Rate Cost Joel Jamnik 1.0 $ 150.00 $ 150.00 Bruce Maus 1.0 $ 260.00 $ 260.00 . Lee Mann 1.0 $ 129.00 $ 129.00 2nd meeting with Devney's Lee Mann 3.5 $ 129.00 $ 451.50 Bruce Maus 3.0 $ 260.00 $ 780.00 Meet with Murphy Lee Mann 3.5 $ 129.00 $ 451.50 Bruce Maus 3.0 $ 260.00 $ 780.00 Meet with Huber Lee Mann 3.5 $ 129.00 $ 451.50 Bruce Maus 3.0 $ 260.00 $ 780.00 Meet with Wurdeman Lee Mann 3.5 $ 129.00 $ 451.50 Bruce Maus 3.0 $ 260.00 $ 780.00 $ 5,465.00 . Farmington Industrial Park Work Plan . Phase 1 - Estimated Cost;; Aug-08 Pre-Contact Consultation Hours Rate Cost Joel Jamnik 1.0 $ 150.00 $ 150.00 Bruce Maus 1.0 $ 260.00 $ 260.00 Lee Mann 1.0 $ 129.00 $ 129.00 3rd meeting with Devney's Lee Mann 3.5 $ 129.00 $ 451.50 Bruce Maus 3.0 $ 260.00 $ 780.00 2nd meeting with Murphy Lee Mann 3.5 $ 129.00 $ 451.50 Bruce Maus 3.0 $ 260.00 $ 780.00 2nd meeting with Huber Lee Mann 3.5 $ 129.00 $ 451.50 Bruce Maus 3.0 $ 260.00 $ 780.00 . 2nd meeting with Wurdeman Lee Mann 3.5 $ 129.00 $ 451.50 Bruce Maus 3.0 $ 260.00 $ 780.00 $ 5,465.00 Estimated Total for Phase 1 $ 12,254.50 . Lisa Dargis .om: Peter Herlofsky Sent: Wednesday, June 18, 20084:32 PM To: Tina Hansmeier; Lisa Dargis Subject: FW: Farmington Industrial Park Budget Information. Peter J. Herlofsky, Jr. City Administrator City of Farmington, Minnesota 325 Oak Street Farmington, MN 55024 Phone: 6514631801 E-mail: pherlofsky@cLfarmington.mn.us From: Bruce Maus [mailto:bmaus@mausgroup.net] Sent: Wednesday, June 18, 2008 4:01 PM To: Lee Mann Cc: Joel Jamnik; Peter Herlofsky Subject: RE: Farmington Industrial Park Lee: Assuming we have gone through 2 meetings with the 3 land owners in phase one to determine if they are .rested in selling, we may proceed as follows: E) 4 meetings @ 2 hrs ea. as we go back and forth discussing possible deal structure = 8 hrs o time in preparation and follow up with each property owner = 16 hrs o meeting with staff including Lee and Joel regarding the same issues and design = 8 hrs o reports and public meetings before councils and commissions = 8 hrs One property owner - 40 hrs @ $260 = $10,400 Arbitrarily, I would cut the time to 25 hrs for each additional property owner because much of the time with others could be combined. Therefore for land owner #2 - 25 hrs @ $260 = $6,500 Third property owner = $6,500 Total = $23,400 This could vary significantly.. If we have folks willing to enter into options @ what we consider reasonable prices, and the City can plan and install initial improvements it will help a lot. If there are protracted negotiations with complicated schemes to make it all work it will take more time. I grew up on a farm and I have bought land from farmers before. It's a whole different ball game than buying a lot in the city. You can't push them. They may need to consider many different ways of putting a deal together. In the past I have had experiences that drag out a long time. We will have to evaluate as we proceed. It doesn't take into consideration doing anything like a 1031 Exchange meaning replacement property has to be .d. One concern I have is if this all appears we are duplicating time here. The City asked me to participate because I have made recommendations regarding design, layout, cost and deal structuring. At the same time you know the area well and Joel also apparently knows the property owners and the City of course. I don't want it to appear there are too many cooks in the kitchen. I want to be conscience of the clients 6/19/2008 money and find the best way to achieve their goal. Therefore, I am not sure if my role will change. I will copy Peter and everybody can weigh in on the issue. . Bruce Maus Maus Group, LLC 1345 Corporate Center Curve Suite 100 Eagan, MN 55337 W 651-379-5118 C 651-214-9833 bmaus@mausgroup.net www.mausgroup.net From: Mann, Lee M [mailto:Lee.Mann@bonestroo.com] Sent: Monday, June 16, 2008 8:58 AM To: Bruce Maus; Joel Jamnik Subject: Farmington Industrial Park Good morning gentlemen, Last week I talked to Peter and he expressed a desire to obtain an estimate for our time to accomplish what I think we would call Phase 2 of the plan, which would be getting the property in question under agreements so that the c. can move forward. Peter acknowledged that the estimate would necessarily be very broad and would neea refinin as we go, but he would like an idea for 2009 budgeting purposes. Let me know your thoughts on how we might best put together this estimate. Thanks. Lee M. Mann, PE Principal Tel 651-604-4850 Cell 651-775-5956 lee.mann@bonestroo.com .. Bonestroo 2335 Highway 36 W st. Paul, MN 55113 Tel 651-636-4600 Fax 651-636-1311 www.bonestroo.com CONFIDENTIALITY NOTICE: The information contained In this e-mail communication and any attached documentation may be privileged. confidential or otherwise protected from disclosure and is Intended only for the use of the designated reclpient(s). It is not Intended for transmission to, or receipt by, any unauthorized person. The use, distribution, transmittal or re-transmittal by an unintended recipient of this communication is strictly prohibited without our express approval In writing or bye-mall. If you are not the intended recipient of this e-mail, please delete it from your system without copying It and notify the above sender so that our e-mail address may be corrected. Receipt by anyone other than the Intended recipient is not a waiver of any attorney-client or work-prOduct privilege. . 6/19/2008 . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJECT: 308 Elm Street - Old Park & Rec Garage DATE: June 23, 2008 INTRODUCfION The property located at 308 Elm Street is owned by the Farmington Economic Development Authority. Dakota County records indicate that the building located on this property was built in 1946. DISCUSSION . The building, which has been used for office and storage for many years, currently stores Engineering and Building Inspection vehicles. A couple years ago a portion of the roof/ceiling fell on to one of the City's vehicles. At that time staff decided to temporarily patch the affected area. As it is recognized the building is in a state of disrepair and will no longer be utilized once staff moves to the new City Hall facility, staff is looking for consensus to obtain estimates to demolish this blighted building. It is anticipated that the cost to tear down this building is roughly $40,000 for demolition, $7,000 to sod plus the cost to abate hazardous materials. ACTION REQUESTED Authorize staff to obtain cost estimates to demolish the building located at 308 Elm Street. Respectfully submitted, ~f; l0lc-lVLn 11<": i~f Tina Hansmeier, Economic Development Specialist . cc: Peter Herlofsky I 'Wi ~ ~~I :,';'5. , roll "'" ' .. ! \sLl~~' af."'+ ~')t a~ r .1 ", ...~.. , J~-.;..r..;.- ~! r \ ..~-.._---- ~.I"'._..J ,~ '-- CT -"11111]""1 I I I I '-- . ,~ ,'(., [,-, or"~ ,! / r' ~~ . , '!,:, ~' " i: . / -~ , j.... . .\ ,. ,i I' I. t I ;; "',. 1 l.' . :, \ ! . 'J ., {.'. . " j I --::'J,.___"_ I: ~ ~I " J I " 'd .~ . . .,: :', 1\ "-, , l' '~. , ' ! ~ ~ . . . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.famlington.mn.us TO: EDA Members FROM: Lisa Dargis, Administrative Assistant SUBJECT: Comprehensive Plan Chapter Activity Update DATE: June 23, 2008 INTRODUCTION Staff is providing an update on activities related to the EDA's priorities as identified in the 2030 Comprehensive Plan. DISCUSSION Staff has been actively working to support several of the strategies that were developed as a result of the identification of priority items in the EDA's Comprehensive Plan Chapter. This report includes a brief description of the initiated/ongoing activities and indicates to which strategies they relate. Please see the attached report. ACTION REQUESTED This item is for information only. Res~~bmi~~ '/ ..-::, X ~t.:Z~:~istant irgi L'\ Economic Development Work Plan Activities Business Outreach Program Marketing Materials Downtown Delineation Industrial Park Expansion Downtown Sign . Staff is continuing to conduct Business Outreach visits and is documenting pertinent information obtained from each visit. This activity supports the business retention and expansion strategies that were identified for all three areas of focus. Staff is currently updating the marketing folder that was created in October 2007 to include information received as part of the market study and additional Farmington information. Staff is looking into professional printing of the materials and has created a brochure to be given to business owners as part of the Business Outreach visits. Staff is developing a preferred layout for the website information pertaining to the EDA and Economic Development Division of the City and has created a draft business guide that will be developed further and could potentially be expanded to an area visitor's guide. This activity supports the marketing strategies identified under Policy 2 (Industrial Development) and will be expanded to support promotion of infill development under Policy 1 (Downtown Development and Redevelopment. . A workshop was held on February nth to begin the process of delineating the downtown commercial district. A public input session was also held in April. The HPC and Planning Commission are in the process of developing design standards for the area. This activity supports Policy 1 (Downtown Development and Redevelopment) . Consultant assistance has been investigated and the appropriate parties engaged. Preliminary cost estimates and a work plan have been created. Negotiation with land owners will be commencing soon. This activity supports Policy 2 (Industrial Development). Staff is has created a draft RFP for replacement of the Downtown Business sign located at 2nd and Elm Streets and the City Attorney is reviewing the document. The cost of converting a portion of the sign to an electronic LED message center and potential addition of emblems for the community's service organizations are being . . . . Incentive Programs Incubator Space Vacant Property Promotion of Avail. Property explored. This activity supports Policy 1 (Downtuwn Development and Redevelopment). Staff is researching possible programs that might offer incentives for existing businesses to expand or for new businesses to locate within the city. The Business Reinvestment Loan Program and Business Development Grant have been implemented. This activity supports all three areas of focus. Staff is gathering information with regard to creation of an incubator space in either the downtown or the industrial park. Staff will be meeting with representatives from Dakota County Technical College's Entrepreneurship Institute to discuss a possible partnership in this area. The Business Development Grant program also offers rental assistance to microenterprise businesses that might occupy vacant space within the City. This activity supports Policy 1 (Downtown Development and Redevelopment) and Policy 2 (Industrial Development). The Riste and McVicker lots have been listed as available for sale. Both properties have also been improved so that they may be used as community green space in the interim. This activity supports Policy 1 (Downtown Development and Redevelopment) As staff receives inquiries regarding commercial development opportunities, available land and building space is promoted accordingly. Staff currently maintains a listing of all available land and building space of which we are aware and it is distributed to interested parties. This item supports Policy 3 (Commercial Development Outside of Downtown) . City of Farmington 325 Oak Street Farmington, Minnesota 651.463.7111 . Fax 651.463.2591 www.ci.farmington.mn.us TO: EDA Members FROM: Tina Hansmeier, Economic Development Specialist SUBJEcr: 2008 EDA Meeting Schedule DATE: June 23, 2008 INTRODUcrION Staff has discussed the idea of starting to meet every other month. This is due to the time it will take to make progress and/or complete each of the items currently being worked on by staff. DISCUSSION . The idea of meeting every other month surfaced during staffs' discussions regarding the anticipated amount of time it will take to complete each task. Some of the activities that the Economic Development staff are working on which would not require monthly EDA Board action are: . Industrial Park Expansion Discussions <) Downtown Commercial District Design Standards . Business Guide Completion . Marketing Material Updates . Incentive Program(s) Research Therefore, it is being suggested that the EDA meet every other month, beginning in July. Please see the attached Meeting Schedule for the remainder of 2008. On the months that are determined, the EDA Board will not meet; however, a detailed report will be mailed to each of the Board members indicating the progress and/or status of economic development related activities. If it is necessary, a meeting will be called and business will be conducted as usual. . ACTION REQUESTED . Approve the 2008 EDA Meeting Schedule. Respectfully submitted, ,..~y( f'U0<C{A/l~rY/c{e tJ Tina Hansmeier, Economic Development Specialist cc: Peter Herlofsky . . . 200 Meeting chedule G"'- ., I~--;"\ L':: i'. , ~ ;J." " Si '-, j- , , , } .L - 3 \} 7 6 7" 8 9 -,", I i I ) , , .5 U '7 (,; ; . U ..) 9 r! j 1 2 j 3 ! ,'/ .) ;.. I 1 , ] :) 6 , 1 0 , ,-,: i i) f 1 , j .) 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You handed out a draft of it at the meeting the other night and I looked through it and wanted to let you know that you have done a very nice job with it. I also wanted to pass along my store phone number since I noticed that you did not have it in the guide. The # is 651-463-9499. Thanks, Laurie Brausen My Eyes... My Heart... . . 1 .. /~{f ~RAi~ {~~~ ~<3 ___.:.~ . ,.. ... ~"O ~ \"'b~,..; ~s '".Alto!' ~<> ~. A PR01/.''i> -'- Workshops, Training & Networking . Lisa Dargis attended the Ram- ble and Amble Kick-off Meeting . Tina provided a tour of Farming- ton to representatives from New Richmond Wisconsin . Staff toured the New City Hall with representatives from DCTC . Lisa & Tina attended the DCR Chamber legislative wrap up breakfast INQUIRIES Industrial Space 1 Industrial Land 3 Commercial Space 5 Commercial Land 1 ( less Contact 6 '-..........,./ Information Request 18 Housing 1 Funding 8 Misc 8 Contact Info. Lisa Dargis (651) 463-1620 . Ldargls@cl.farmlngto~.mn.us Tina Hansmeier (651) 463-1821 Thansmeler@cl.farmlngton.mn:lis} Fartnington Econotnic Update Economic Development Staff Report June 23, 2008 Volume 11 Welcome Friends Floral , Located on the corner of Third and Elm Streets in downtown Farmington, Welcome Friends Floral offers flowers, plants and gifts for any occasion. Stop in and see their unique selection of home decor items or to order a gou rmet basket. (651)460-6266 www.welcomefriendsfloral.com HELP FIGHT CANCER IN FARMINGTON! The 18th annual Farmington Ramble and Amble walk to benefit the American Cancer Society is being held on Friday, 8/15/08, from 6:00 pm - 10:00 pm at the Dakota County Fairgrounds in Farmington. Please join ourteams of walkers to raise money and circling the track to join the fight against cancer. Light a luminaria bag in honor of someone you know or to remember those we have lost to cancer. To learn more about how you can be involved in this event by forming a team, volunteering, purchasing luminaria or other ways to get involved, please con- tact Barb at 651-463-3542 or Steve at the American Cancer Society at 651-255-8145. Please join us in the fight against cancer! -1 ,',' '. 1M 17m1~e, &~J'161 ~'r'_l !"..1f-:-J _,~~~..:_.(~I.l _.-. ':i!}. - - . J "___. '!!.4'_':..-"'::~'" A CAlNSTCA'U;m Palle 2 ,Farmington Economic Update 4' . ~ : :"'~oIf "",~7-: ..~ ,-^-- ,~-j, '/ Servicios Latinos Menas Specializing in Mexican and Central American Food, Servicios Latinos Menas is the place to go for tama- les in downtown Farmington. Owner Martha Mena also offers wire transfers to Mexico, South America and the rest of the world through Western Union and international prepaid phone cards. Operating in Farmington for two years now, Menas is already widely known. Pay them a visit and try some of their authentic products. They are located at 320 Third Street. (651) 463-1380 Decache Style . Owner Ana Morino wants shop- pers to know that she is committed to making afford- able fashion accessible to area residents. With selections changing monthly, and weekly sale specials Oecache Style is a place you'll want to visit often. They offer a stylish selection of clothing, jewelry and shoes as well as a selec- tion of children's apparel. They are conveniently located in downtown Farmington at 320 Third Street next to Servicios Latinos Menas. . 1 'f "=\ . .. . Page 3 . Farmington Bakery ~ . America's Fitness Center Fitness is a passion for Kyle Snesrud, co-owner of America's Fitness Center. With sites in both Farmington and Rosemount, Kyle and his father Dale have had the opportu- nity to share their enthusiasm for the benefits of exercise and strength training with members of every age since 1999. Their easy card access system allows you to work out at the times that work best for you and they offer a variety of classes for any fitness level. Stop by and check them out at 109 Elm Street or call (651) 463-8555 www.afc247.com . PaE!e 4 Farmington Economic Update City Center You may have noticed a new look to the City . Center area along Elm Street. The strip center portion of the development recently got a fresh coat of paint and new awnings. BEFORE The updated look really makes the building catch your eye! AFTER ~ Did you miss an issue of The Economic Update? Check out the City's website under News and Information for past issues. www.ci.farmington.mn.us I I j I l 1 I 1 9E: 'ON l!wJed NV\I 'uoll5u!WJe;:j Ol'v'd 38'v'lSOd 'son pJepuelS lJoS8Jd p8lS8nb8~ 80!J\J8S SS8Jpp'f 'l7Z0SS NIJ\I 'UOJ6U!WJe. JaaJJS >lea SZt uOJ6u!wJe.::lIO ~J!::> /~ I , Essential Information For Downtown Revitalization Vol. 55, No. 11 . June 1, 2008 . State and Federal Policy Broaden rationale in lobbying for laws that better serve downtowns . In 2006, the Brookings Institu- tion and GrowSmart Maine provid- ed Maine with an ambitious action plan for promoting sustainable pros- perity. Under the action plan, titled Charting Maine's Future, the state would streamline and modernize government and export some taxes to out-of-state visitors, freeing up money for new initiatives that would provide benefits including improving the state's downtowns. The report argued that strength- ening downtowns and main streets would relieve development pressure elsewhere, thereby preserving the rural charms of the Vacation State to tourists, and ensuring that tourism revenue will not dry up due to sprawl's homogenizing effect. Now Maine's lawmakers, spurred by GrowSmart Maine and downtown advocates throughout the state, have enacted two keystone rec- ommendations from the GrowSmart- Brookings report. New legislation passed in the recently concluded 2008 legislative session will promote new vitality and quality development (Continued on page 2) Arts & Entertainment Film center opening demonstrates value of building wide, solid base of support A successful movie theater is among the most wonderful sorts of activity generators a downtown dis- trict could have, capable of attract- ing people every day of the year and generating plenty of spin-off business for restaurants and stores. On the other hand, in many . markets it can be hard for a down- town movie theater to compete with giant multiplexes featuring wider selections of movies, wider \ aisles and seats, and the giant park- ing lots to match. To be economi- cally viable, the downtown cinema usually has to offer something dis- tinctly different, and pursue a spe- cial business model. For example, out of the long- term success of a college film soci- ety grew an idea to create a film center that would screen indepen- dent, foreign, and classic films in (Continued on page 5) City pays difference for matching fixture Alexander City, AL (pop. 15,010), has been installing decorative lighting in the down- town area. There's nothing par- ticularly original about that. But the new lighting doesn't mesh with the old silver colored traf- fic signal pole and box in the Broad Street Plaza area - and the solution is noteworthy. The old pole will be replaced as part of a railroad crossing project being under- taken by the Alabama De- partment of Transportation (ALDOr) and Norfolk Railroad. This required that Alexander City agree to pay the differ- ence between the normal type of pole usually installed by ALDOT and a decorative pole that will match the new down- town lighting. Inside this issue Downtown finds room for both historic aesthetic and new development.. . . . . . . . . 3 Bistro restaurant will help bal- ance books for not-for-profit cinema. ................. 6 TOO strategy will increase residential density, reduce parking requirements. ..... 7 Look local to find buyers. . . . 8 @ 2008 Alexander Communications Group, Inc. Af{ rights reserved. ISSN 0012-5822 Downtown @ Idea Exchange A publication of the Downtown Research & Development Center 712 Main Street - Suite 187B Boonton, NJ 07005-1450 Phone: (973) 265-2300 . Fax: (973) 402-6056 Emai1: .info@DowntownDevelopment.com Website: www.DowntownDevelopment.com Editor Paul Felt, ext. 119 pfelt@DowntownDevelopment.com Customer Service Mary Pagliaroli, ext. 101 mpagliaroli@DowntownDevelopment.com Reprints and Pennissions Mary Dalessandro, ext. 103 mdalessandro@DowntownDevelopment.com Publisher Margaret DeWitt. ext. 106 msdewitt@DowntownDevelopment.com Downtown Idea Exchange@ is published twice montbIy by the Downtown Research & Development CenleL The Center provides news, information and data for SUccess- ful downtown revitalization through its newsletters, books, reports, and website. ,~ Alexander Communications Group ..~ @ 2008 Alexander Communications Group, Inc. All rights reserved. No part of this pub- lication may be reproduced. stored in a retrieval system. or transmitted in any form or by any means. electronic. mechanical. photocopying or otherwise. without the prior written permission of Alexander Communications Group. Subscription Order Form: Please start/renew my one-year subscription to Downtown Idea Exchange for $227.* NAME TITLE FIRM/ORGANIZATION ADDRESS CITY STATE ZIP PHONE FAX EMAIL N15 4J MAIL: 712 Main Street - Suite 187B Boonton, NJ 07005-1450 WFAX: (973) 402-6056 . PHONE: (973) 265-2300 @ EMAIL: info@DowntownDevelopmentcom . North America, $227. Elsewhere, $257 Oncludes airmail delivery). 2 . \ \ I I 1 Lobbying for laws that better serve downtowns - continued from page 1 ing code standards were similar from one downtown to the next, "the code enforcement officers would still enforce them to differ- ent interpretations. It was a mess." Despite having a few develop- ers in the state who are genuinely interested in doing infIll and quality downtown redevelopment projects, he says, "it was really difficult for them to operate in this atmosphere, because there were so many differ- ent standards from town to town. So replacing that system with a statewide standardized building code based on the International Building Code standard, we expect, is going to simplify things and make downtown and main street development projects a lot easier." Broadening the base of support The key challenge to meet in advocating policies that are good for downtowns is to convey how everybody benefits. And to win policy supporters from the broad- est base possible. That way, even if the timing is not ideal, reasonable people on either side of the aisle will support the needed changes. "In an abstract sense, every- body agreed that an historic preser- vation tax credit was an investment that would payoff in the long term, and that the crazy quilt patchwork . in Maine's downtowns. The legislation measures are a statewide building code that will simplify rehab work and down- town development. And a newly expanded tax credit for historic rehabilitation will return dozens of underutilized historic buildings to productive working and living space. "Those two bills were the focus of our advocacy work this past win- ter when the legislature was in ses- sion. They're both important for downtown redevelopment, in that they will make infill development and historic rehabilitation easier in Maine," says Christian McNeil, communications specialist for GrowSmart Maine. Making the right thing easy Central to any effort advocating better policies or laws is educating the general public about why it mat- ters. Most laypeople can easily per- ceive why historic tax credits are important to their downtowns, but the need for a uniform building code is not as obvious. It also lacks the nostalgic appeal of keeping familiar old buildings that people identify their downtowns with. But "when we've gone around the state and talked with develop- ers and owners of downtown build- ings, they've oftentimes expressed a lot of frustration at the state's system of building codes," McNeil says. Not all of the state's 400 municipalities had building codes, but the larger towns with down- towns typically did, and each downtown's building code was typ- ically different from the next. What's more, even if the build- IDI Web Extras ~ To view an interactive Google Map of historic buildings in downtowns and town centers all over the state that have been rehabilitated thus far with Maine's pre-existing historic tax credit, visit www.DowntownDevelopment.com and click on Web Extras. . Downtown Idea Exchange . www.DowntownDevelopment.com June 1, 2008 f . of building codes wasn't something that made any sense, and should be replaced by a single statewide stan- dard. However, the devil's in the details," McNeil says. This winter for example, Maine lawmakers were overwhelmed with trying to fill a $200-million budget shortfall in state spending. So despite the clear long-term benefits of ex- panding the historic tax credit, sacri- ficing short-term tax revenue was a challenging proposition. To broaden the scope of support for the historic preservation tax credit expansion bill, GrowSmart Maine last summer convened the Coalition to Revitalize Maine's Towns and Cities, a statewide group of downtown advocates including Main Street and historic preserva- tion organizations, developers, design professionals, contractors, architects, and other businesses and groups. Both GrowSmart Maine and the Coalition to Revitalize Maine's Towns and Cities called on their members to contact state legislators in support of the tax credit issue. "In the end, [legislators] worked really hard to fmd the money in this year's budget to pay for this tax credit, and it passed pretty overwhelmingly." Be prepared to counter opposition It's also important to be ready to counter organized opposition to lobbying efforts. For example, the Maine Municipal Association took issue with the bill proposal calling for statewide enforcement of a statewide building code. Some towns in the state "didn't want to have to hire a code en- forcement officer, or have their developers or builders have to hire a code enforcement officer. We didn't want to give in to that demand . . June 1, 2008 because this whole concept was about having a single statewide standard," McNeil says. "But one of the nice things about having a statewide standard is that these smaller towns will be able to actually share a code enforcement officer. Because there's only one system of regula- tion for the whole state, you can have an entire county share one code enforcement officer, and all those towns could share the cost, where you couldn't do that before with all these different standards." Now the single statewide code will replace dozens of regulatory systems with one. Successful advocacy speaks with authority and reason The key, McNeil says, was "to frame this discussion as not just being about promoting downtown development because it's good in its own right (although that is what we think), but also as actions that will revive our economy, and attract talented new workers and new businesses to our state because of the quality of our place. So we've been able to gather sup- port from the environmental com- munity, business community, and chambers of commerce." Even before the legislature was in session, much of the groundwork for successful advo- cacy was laid with establishment of the broadly based Coalition to Revitalize Maine's Towns and Cities. The group's clear plan of action was already in place when it was time to mobilize members and ask them to contact the state legislators. Contact: Christian McNeil, or Maggie Drummond, GrowSmart Maine, (207) 847-9275, www.growsmart- maine.org. . Preservation Finding balance between historic aesthetic and new development Aesthetic character is difficult to measure, yet we all know that people place immense value in it in downtown areas. People will pay hefty premiums to live or maintain a business on downtown streets with a distinct sense of place, and shopping and dining on those streets tends to be very special. So much so that visitors can easily forgive the tight supply of parking. Therefore, aesthetic character is a resource that every downtown should work to preserve, protect, and multiply, like any other that's critical to its economic health. That said, nobody comes for a night out in a ghost town full of great architecture. It's the business- es that drive day-to-day downtown activity, and actions to preserve aesthetic character should always keep property owners and business- people front of mind. To illustrate, in downtown Wichita, KS (pop. 344,300), the city's Historic Preservation Board is proposing the development of block-by-block design guidelines to simplify infill development. The guidelines will clarify what the board will be looking for in judging new designs to be compatible with architecturally and historically sig- nificant buildings. The board is also working on revising the city's Downtown Idea Exchange. www.DowntownDevetopment.com 3 preservation ordinance to allow more notification to local property owners when buildings are listed as historic. Protective historic environs law has critics "Historic preservation in Wichita and everywhere doesn't object to development. We really do want to support development in our downtown," says Barbara Hammond, planning analyst, His- toric Preservation Office, City of Wichita. So "the proposed changes are going to address complaints or concerns" of downtown business leaders, she says. "The historic preservation ordinance is being revised because it's time to, and it comes at a time when the down- town developers have some specif- ic concerns." A specific concern among downtown developers is a state law unique in the U.S. to Kansas, that sets up a protective boundary around any structure that is listed on the State or National Register of His- toric Places. "We refer to that area, which is a 500-foot-radius, imagi- nary circle around any listed struc- ture, as the 'environs.' The effect of this is that rehabilitation projects within that environs are subject to review by the Historic Preservation Office, in the same manner that a listed structure is subject to design review," she says. That is, for building permits on Register-listed sites, the Historic Preservation Office staff reviews minor projects, and a seven-mem- ber Historic Preservation Board appointed by the city council and mayor reviews major construction and rehabilitation projects. "The same thing happens, but the criteria is not quite as severe, for properties in the environs. But 4 they still have to be reviewed. And this is what makes the developers downtown nervous. Because there's a lot of misperception that the 'preservation police' won't allow them to do anything they want to do," Hammond says. But it's not about being anti- change. Design would only deny any proposal for development that would encroach upon, damage, or destroy the environs around a His- toric Register-listed site. "So our job is to educate the general public, developers, contrac- tors, architects, and property own- ers, to show them that this review isn't designed to punish them. It's designed just to guide them in making appropriate architectural choices for the exteriors of their buildings, so that their projects will help maintain what we call the his- toric fabric of the neighborhood." Mitigating measures proposed Understandably, some down- town developers and property own- ers trying to market their properties to new tenants or buyers believe that the design review required within historic environs impedes their abili- ty to do that. To address their concerns, the Wichita Downtown Development Corp. created a special committee to work out a solution with the Historic Preservation Board. It turned out property owners in 'new' historic environs areas down- town were often taken by surprise. The new historic preservation ordinance currently being drafted is proposing that there be a notifica- tion process when a building is going to be nominated to the State or National Register. So at the pub- lic Historic Preservation Board meeting, adjoining property owners and anyone else will have fair , warning and opportunity to com- ment on the possibility of a building being listed. Some on the special committee who were uneasy about environs review asked if that could be changed as well. But that is a state law, and relaxing the rules for envi- rons review would require amend- ing the state constitution. "Because we can't change that state law, and the Historic Preserva- tion Office is sympathetic to the con- cerns of developers, we addressed their concerns by proposing that the Wichita Office of Historic Preserva- tion apply for a grant in order to fund a consultant who would write design guidelines for the downtown properties:' says Hammond. The project would employ a historic preservation consultant independent from the city, who would go block by block, property by property, to assess the architec- ture. In other words, for every address, the consultants would look at a given property and what's next to it on that block, and write down some guidelines for future architec- tural development. Ideally, the guidelines will tell prospective buyers of downtown properties whether or not their plans could pass design review in the context of the rest of the block. "In some cases, if a good num- ber of buildings on a block are radi- cally different and don't have much historic context, then the possibili- ties for new and more modem types of architecture would be wider than for those which are immediately adjacent to an older or historic set of buildings. It gives developers lati- tude to pick and choose where they need to be." Contact: Barbara Hammond, Wichita Historic Preservation Office, City of Wichita, bhammond@wichita.gov. . . . . 1 I I f Downtown Idea Exchange . www.DowntownDevelopment.com June 1, 2008 Film center opening demonstrates value of building wide, solid base of support - continued from page 1 downtown Shreveport, LA (pop. 200,100). The new Robinson Film Center, containing two theaters, a cafe and restaurant, opened in a renovated building last month. Since its inception as a roving not-for-profit operation six years ago, the film center has grown into a permanent venue that will screen films daily, offer gourmet conces- sions, and continue to offer educa- tional programming and also serve as a resource for the local film industry. Thanks to state tax credits, Shreveport has become a hotbed of film production. Now its downtown has a place where viewing and dis- cussing film is something the whole community can share. . . Conceived early on as a catalyst for downtown The Shreveport Downtown Development Authority, Downtown Development Corp., and the city all made key contributions to seed the theater project. "Our original money from the downtown devel- opment authority was to serve as an anchor in a part of town that was relatively deserted, especially after 5 o'clock, and so that original seed money really gave us the mis- sion to bring people downtown," says board chairman Jefferson Hendricks. For 25 years, Hendricks, a pro- fessor of English and Film Studies at Centenary College, has been running the college film society that inspired the film center with board secretary and Centenary art professor Bruce Allen. A traditional stage theater or playhouse was originally in the . June 1, 2008 DDA's plans for an arts-based revi- talization catalyst, Hendricks says. "When we heard that, we asked, 'Have you thought about a movie theater?' They hadn't, and said, 'Make us a proposal,'" he says. "I think we will very much bring peo- ple downtown. We had between 600 and 700 people at the grand opening gala," which he estimates raised between $100,000 and $150,000. "A lot of people came down- town that perhaps hadn't been in that part of downtown at night before. They were very excited to see us, and I think it's the begin- ning of something very special there," he says. Multiple finding sources are essential To make the theater a reality, "we had to have buy-in from all segments of the community," Hen- dricks says. To date, the film cen- ter has received about $2.36 million in government funding, including city, state, and some fed- eral support. "We had to really work hard to convince some people that the movies were a serious enough busi- ness, potentially," he says. "We did our homework and researched sev- eral film centers across the nation. We visited them and put together a business plan, and I think a concep- tion for what we're aiming to do that will make it work." Board president Sylvia Good- man spearheaded efforts to raise about $6.2 million to build and operate the Robinson Film Center. Renovation and equipment costs totaled $4.2 million. The addition- al $2 million will fund the not-for- profit center's start-up operational costs. The annual budget for the film center is expected to be about $1.5 million. The board plans to raise the money needed to operate the film center through a mix of government funding, corporate and private donations, grants, fundraisers and revenue earned through space rentals, food and beverage sales, and ticket sales. "Revenue from the movies, the concession stand, space rental, and the bistro (see box, page 6) will we think be $1.1 to $1.2 million. And we're thinking we'll have to raise in the community through dona- tions, grants, and memberships about $400,000 or so. Those are very rough numbers at this point, but that's what we're looking at," Hendricks says. Programming for all segments of the community "Absolutely the key here is to appeal to as many different con- stituencies as possible," Hendricks advises any downtown looking to create this sort of attraction. "In terms of our programming, for example, we'll offer things to a wide variety of people, not just the art film audience that's our core audience. We're very hopeful that we will be able to program on mul- tiple levels. We really envision this to be a community center that is focused on film," where all types of people will come to be entertained, learn, and mingle. In visiting other film centers around the country, "the key that almost everyone mentioned is you have to have buy-in from multiple levels of the community - not just people who are interested in high culture, but people who are interest- Downtown Idea Exchange . www.DowntownDevelopment.com 5 ed in the possibilities of education, and people who see the fIlm center as an advantage in the cultural economy and economic develop- ment in downtown. What's also key for us that we learned from other facilities is, you don't want to do only exhibition. You also want to bring in things like educational experiences. We're doing that with grades K through 12." In terms of diversifying, for example, there are several church- es located nearby, and film center leaders have been talking with ministers and laypeople in those churches about how they can part- ner. "One of the film series that we'd like to have is a Religion in Cinema series, where people could get together maybe once a month to talk about issues related to the representation of religion and spir- ituality in film. Hopefully we'd get people from different congrega- tions that haven't necessarily sat down very much together to expe- rience something and then talk about it. We have people in town who are looking forward to run- ning that series for us." Experience programming for community will be boon "In an ideal week, we would have two English-language, inde- pendent films, a foreign film, and a documentary film. We also will have one night a month that we will open up for local and emerg- ing filmmakers. So students can put their movies up on the big screen and invite their parents to come down," Hendricks says. "We certainly have I think the ideals in place. The real challenge, of course, is we have to make it an economically viable organization. We do want to reach out to the very different aspects of our com- 6 munity here. I think the key for us is to program something for as many people as possible." "We have tried to tailor our whole idea towards a real commu- nity effort as opposed to something that would cater to a more educat- ed crowd," notes Allen. It helps that the programmers for the film center have already done 25 years of programming for the Centenary Film Society. "We're taking the programming ideas from the Centenary Film Society out into the community, basically," Hendricks says. "We had a base constituency and had experience programming for this community, so we have a strong sense of what will play well here and what will work in this community. The community is much more progressive, and the area has grown a lot in the last 25 years. That's all very much to the positive. It's an exciting time to be in Shreve- port," especially in downtown. Contact: Jefferson Hendricks, jhen- dric@centenary.edu, or Bruce Allen, ballen@centenary.edu, Centenary Col- lege; Robinson Film Center, www.robin- sonfilmcenter.com. . . Bistro restaurant will help balance books for not-for-profit cinema "What we figured when we started this film theater was that every day, people would be coming down there, as opposed to a playhouse, where it happens only on weekends once or twice a month," says Bruce Allen, Robinson Film Center board secretary. "Plus, we wanted to make it accessible more than just for film, so we added a second-floor bistro restaurant and a ground-floor cafe that doubles as a concession stand, so we could have an atmosphere that would bring people in." The idea is that many moviegoers coming to the Robinson will realize that this would also be a great place to meet up with friends and hang out after work, and go to a movie, too. "We're hoping to maximize what profits can be made from the restaurant to help support the rest of the program. The educational program's not going to make money in the traditional sense. It has to be supported by grants." And the films that the Robinson will be show- ing won't be drawing the huge crowds of a conventional movie the- ater's popular fare. "So we wanted to have some way to help subsidize the less- attended features, and we want to maximize the money from the restaurant. So we kept it in house. It's part of the operation, and it helps us integrate dinner and a movie, and catering for events that might be associated with the films." There are a couple of successful restaurants on the same street as the theater, he says. And as work on the film center was being com- pleted, a restaurateur bought a building next door to convert it .into a new restaurant. "We thought that this would add more people to the mixture, and make downtown more successful for everybody." . . Downtown Idea Exchange . www.DowntownDevelopment.com June 1, 2008 . Transportation TOO strategy will increase residential density, reduce parking requirements . Nearly three years ago, the City of San Leandro, CA (pop. 79,450), was awarded a $450,000 planning grant from the Metropoli- tan Transportation Commission to study the potential for transit-ori- ented development (TOD) within a half-mile radius of a proposed Bus Rapid Transit (BRT) Station, a study area that also included the San Leandro Bay Area Rapid Tran- sit (BART) Station and downtown. The City also received a supple- mental grant of over $50,000 from the Alameda County Transportation Improvement Authority to cover matching requirements. The end result of this public investment in planning is the Downtown San Leandro Transit-Oriented Develop- ment Strategy, a long-term roadmap to foster TOD and revitalize down- town in the process. The strategic plan expands on the policies in the General Plan for the downtown, and articulates and quantifies the potential of the greater downtown area for TOD. Comprehensive land use policies and a detailed land use map reflect the future benefits of enhanced bus service through the downtown and improved multi-modal connectivity. Selected opportunity sites were also studied to provide more specific guidance for future development. "One of the things that we found was very successful about this was that we had a very engaged Technical Advisory Com- mittee, which included regional planning and regional transit agen- cies. We all sat at the table together as we were developing reports and ideas to present to our Citizen . June 1, 2008 Advisory Committee," says Kath- leen Livermore, planning manager, City of San Leandro. "That provid- ed us with excellent technical knowledge, and state-of-the-art ideas related to capturing transit ridership based on land use." The Technical Advisory Com- mittee would review draft reports before they were forwarded to the city council-appointed Citizen Advi- sory Committee. This process led city planners to rethink and argue for changing, for example, a critical opportunity site that had always been designated for office land use. "It never had been considered as residential, and the regional agencies said, 'Listen, with residential, you get a 40-percent capture rate on transit. With office and retail, you get at best 10 to 15 percent. Having [the Technical Advisory Committee] have a loud voice really helped us make that jump to something that was going to be much more effec- tive in terms of increasing transit ridership. And increasing transit rid- ership was the point of the grant." Development of the Downtown San Leandro Transit-Oriented Development Strategy also benefited from highly engaged community involvement. The 27-member Citi- zen Advisory Committee held 10 meetings over 17 months. There were also three community meet- ings, attended by 240 area residents. The resulting strategy, adopted unanimously by the city council, which was kept updated throughout the process, entitles 3,431 new res- idential units, about 121,000 sq. ft. of retail, and 781,000 sq. ft. of office space in the TOD study area through the year 2030. "The General Plan had thought we would have 590 new residential units in that same area between now and 2015. This strategy looks at double that General Plan between now and 2015, and the additional balance by 2030. It's a much more intense density." The TOD plan calls for de- creasing parking requirements, to one parking space per unit immedi- ately adjacent to BART, and 1.5 parking spaces for the remainder of the study area. "We have about 20 implemen- tation strategies related to parking, so it's a whole menu to choose from, to mix and match, and imple- ment over time," Livermore says. Those strategies include reduc- ing the commercial, office, and retail parking requirements to two spaces per thousand square feet, with no parking requirement at all for commercial spaces under 5,000 square feet. "One of the things that really got residents excited about the plan was that with increased residential densities, there's a wonderful opportunity to enhance the retail experience," she says. "We also had three visual simulations of three opportunity sites that identified the existing condition compared to five, 10, and 20 years, which really allowed the community to visualize what could happen instead of being afraid of the d-word, density." Contact: Kathleen Livermore, City of San Leandro, (510) 577-3350, kliver- more@ci.san-leandro.ca.us. . [JI Web Extras 1m ('uD To view the Downtown San Leandro Transit-Oriented Development Strategy, visit www.DowntownDevelopment.com and click on Web Extras. Downtown Idea Exchange . www.DowntownDevelopment.com 7 ~ """ f*& 1~~ "'~~ *f Id~ ' , "r': ~,~~>::ltce~, flB'1~ ~"~"I 1I,,,,lIA.. ."4fifail!:'. ii t~ ,J J t, ' ~ k . <<4F:s1'f ~.1!'d '%.i\; I" '~'#jP\ ~ f,,$;:::$I U '" ,rj0~ ",~"0\%0 ~ '" ,~{ D ("' #' nt..an'ge 0 B, l t 11 & ,tht t' It ~*', Mt0"tft ~!!~' if t * ~ll &" t$dt~",,1t!t,;% 2!~t, *d '" t ~11$"w. J'7,Ji""ttrlffitP" '%. t K ~J .J I New program gets the word out The Derry, NH (pop. 22,660), Economic Development Corpora- tion launched a local access cable television show last fall to inform residents about local, regional, and state economic development issues that affect the community. For instance, the fIrst episode of What's Developing? included dis- cussions with the town administra- tor and with the developer of a local construction project. Copies of the program on DVD are also available for $5 (to cover shipping and handling costs). The organiza- tion plans to eventually make the program available on the Internet as well. Program prepares leaders Wondering where tomorrow's- downtown leaders are going to come from? That's not a concern in Basehor, KS (pop. 2,240), where for the past two decades, the Southern Leavenworth County Leadership Development program has provided training for tomor- row's leaders. Established by the Basehor and Tonganoxie (KS, pop. 2,730) Chambers of Commerce, the program has graduated 250 students over the years. Persons living or working in the Leaven- worth County area, including high school juniors and seniors who are interested in developing their lead- ership skills and becoming better informed citizens are eligible to participate in the class. The pro- gram covers such valuable topics as leadership development, busi- 8 . ness and economic development, city government in planning, and state legislature in action. tude ... is detrimental to attracting new businesses, residents and visi- tors," he wrote. "If [the mayor] is serious about downtown revival, he will reinstate seven-day downtown garbage pickup, and educate down- town residents and landlords and enforce the rules for proper trash disposal." Trash pickup is key to downtown's image There are some expenses and services you can cut back on that most people won't notice. Trash pickup isn't one of them. When weekend trash pickup was suspended in downtown Pough- keepsie, NY (pop. 29,870), one downtowner wrote to the local paper to complain about overflow- ing trash containers and litter. Among the issues he raised was proper use of public trash recepta- cles, stating that residents and business owners used the public containers for their household and commercial garbage. "Having this laissez-faire atti- Move hot dog stands to reduce crime Police in Boise, ill (pop. 185,800), credit better lighting, education for bartenders, and new rules covering the location of hot dog vendors with helping lower the crime rate. Changing the approved location of hot dog stands and creating specific taxi pickup zones has helped to reduce drunken fights and other crimes downtown, they claim. . . Look.local to find buyers for old"buildings Bringing a downtown landmark back toitsiformerglory canb~ expensive, which is a prime reason why it's often difficult to .find sqme:.. onewiUing to take on the project. Understanding the funding opti?nl; beforehand can ease much of that anxiety. This spring, a. grol..lpofsix local residents bought the 78-year-old EI Ra.ton theater inRatbn, N. M. (pop. 7,280), with plans to renovate it and tUrn itinto a "spark" for future. downtown. development. Renovations and repairs will be extensive. In addition to fix.ing(i leaky roof (estimate: $60,000),' the group plansto.upgradeheCltingand electrical systems. and renovate the front of the buildin9,whiQHi9Q'l.ldes two storefronts. and an apartment. Updating this area and renting out those spaces is expected to bring in money for the remainingrestora- tions. The theater was listed on the New Mexico.State Register of Cul- tural Properties in200q and added to the National Register of Historic Places in 2007, which could also lead to taXcreditsandgfants. Thenew owners plan to find and satisfythecommunity'sJilrn nich,- eS,and hope to have the theater open on a consistentbasis,l:l,lthough they. say. that may take . two or three years. . Downtown Idea Exchange . www.DowntownDeve/opment.com June 1, 2008 Essential Information For Downtown Revitalization Vol. 55, No. 12 . June 15, 2008 . Business Recruitment & Retention Serendipity and the city play leading roles in relocating primary employer downtown . With a serendipitous mixed-use agreement struck with a downtown property-owning couple and a cash incentive from the city easing a costly old building renovation, the local office of an engineering firm will soon be relocating from an unincorporated area to downtown Loveland, CO (pop. 50,610). KL&A Inc. a structural engi- neering firm that has been west of Loveland for more than a decade, has invested in a complete renova- tion of the building along with its co-owners, Doug and Leslie Collins. "We actually met one of their principals, [Loveland native] Doug Rutledge, at a downtown festival last summer," says Doug Collins, who's also, appropriately, business vitality chairperson of the Down- town Loveland Association. "My wife and I were actually working a booth for the Downtown Loveland Association. He came up and men- tioned he was looking for some space downtown. We said, 'Well, we happen to know of some!' That started the conversation. (Continued on page 4) Management A recipe book for high-impact downtown revitalization projects . Based on downtown revitaliza- tion efforts over the past 30 years, the Pennsylvania Department of Community & Economic Develop- ment (DCED) has distilled a three-step process for attracting high-impact private investment to spur new economic growth. "In general, the phases of conceptualization, planning, and implementation, are pretty much the same wherever you go," says Ken Klothen, deputy secretary for community affairs and develop- ment. "Obviously, different mar- kets make one or another issue along the way more salient. But, in general, it's the same set of factors in any revitalization pro- ject in any older downtown." Take inventory of assets and prioritize The most critical thing at the beginning of conceptualizing a (Continued on page 5) Are gas prices making living downtown more desirable? There are a lot of reasons to complain about high gas prices this summer, but for downtowns looking to increase their residential base, there's optimism associated with the pain at the pump. Economist Joe Cortright believes that increasing gas prices are caus- ing more demand for down- town housing as suburbanites look to shorten their commute and live closer to the amenities that downtowns otter. He points to home price changes in several metro areas where neighborhoods near downtown appreciated while suburban neighborhoods depreciated. It's a great marketing angle to keep in mind when promoting downtown living. Inside this issue Perspectives: Ten realistic retail themes for a vibrant downtown. . . . . . . . . . . . . . . . 2 City prefers case by case flexibility over policy.. . . . . . . 4 Guide designed to serve as reference as a project moves forward. . . . . . . . . . . . . . . . . . 6 Finding, keeping good board members involves sawy. . . . 7 @ 2008 Alexander Communications Group, Inc. All rights reserved. ISSN 0012-5822 Downtown @ Idea Exchange A publication of the Downtown Research & Development Center 712 Main Street- Suite 187B Boonton, NJ 07005-1450 Phone: (973) 265-2300 . Fax: (973) 402-6056 Email: info@DowntownDeve!opmentcom Website: www.DowntownDevelopment.com Editor Paul Felt, ex!. 119 pfelt@DowntownDevelopment.com Customer Service Mary Pagliaroli, ext. 101 mpagliaroli@DowmownDevelopment.com Reprints and Permissions Mary Dalessandro, ext. 103 mdalessandro@DowntownDevelopment.com Publisher Margaret DeWitt, ext. 106 msdewitt@DowntownDevelopment.com Downtown Idea Exdumge@ is published twice monthly by the Downtown Research & Development Center. The Center provides news, information and data for success- ful downtown revitalization through its newsletters, books, reports, and website. ') Alexander Communications Group .. @ 2008 Alexander Communications Group, Inc. All rights reserved. No part of this pub" lication may be reproduced, stored in a retrieval system, or transmitted in any fonn or by any means, electronic. mechanical. photocopying ar otherwise, without the prior written pennission of Alexander Communications Group. Subscription Order Form: Please start/renew my one-year subscription to Downtown Idea Exchange for $227.* NAME TITLE FIRM/ORGANIZATION ADDRESS CITY STATE ZIP PHONE FAX EMAIL N15 4:l MAIL: 712 Main Street - Suite 1878 BoOnton, NJ 07005-1450 WFAX: (973) 402-6056 it PHONE: (973) 265-2300 @ EMAIL: info@OowntownDevelopment.com . North America, $227. Elsewhere, $257 Oncludes airmail delivery). 2 Perspectives Ten realistic retail themes for a vibrant downtown . By Bill Ryan, University of Wisconsin-Extension Based on market analysis fmd- ings of many communities, coupled with business examples being submitted to the University of Wis- consin-Extension's Innovative Downtown Business online clear- inghouse, 10 broad categories of retail are emerging as good fits for downtown. These can include both chains and independents and should be considered when downtown develops its business expansion and recruitment wish list. 1. Lifestyle and wellness retail: An innovative example of a business designed to respond to busy lifestyles is Meal Time in downtown Platteville, WI. This independent business allows busy people to prepare their own healthy meal, take it home to freeze or bake at their convenience. The business creates late afternoon traffic for the nearby wine and cheese store and fitness center. Ladles to Linens in Winnsboro, TX, a gourmet kitchen shop, allows shoppers to take evening cooking classes. Shoppers are drawn from as far as Dallas, and often end up staying downtown for a visit to the spa and the nearby cafe. Earth Rider is a bicycling busi- ness in downtown Broadhead, WI that supports a lifestyle of fitness, achievement, wellbeing, and quality of life through cycling. The busi- ness combines a retail store, rentals, tour packaging, and a bicycling- inspired inn, providing an escape from urban stress. 2. Community gathering place businesses: Downtown's central place and sense of place make it uniquely suited for people to congregate for social or commu- nity purposes. The Red Mug Coffeehouse in downtown Superior, WI has carved out a niche not only as a coffee shop, but also as a culturally aware store promoting the arts and organic/fair-trade food. They have become a gathering spot to orga- nize community-oriented events geared toward education and activism. 3. Retailers that celebrate local heritage: The character of traditional downtowns is well suit- ed to businesses that sell products to celebrate the past. While antique shops are common examples of such stores, other retailers also cel- ebrate a community's past. In Prairie du Chien, WI, the wood counters and floor found in Hamann's Variety Store add to the nostalgic atmosphere of the com- munity. Candy purchased at the old wood counter remind many parents of the comer stores of their youth while creating the same kind of memories for their kids. Sarah Winter Clothworks has helped call attention to the textile- manufacturing heritage in Willi- mantic, CT. Clothing is designed, cut, dyed, and sewn by hand onsite using natural fibers such as hemp and organic cotton. Because the products they sell are made in their store, the business is creating a connection that celebrates local heritage. 4. Stores that entertain: 'Shoppertainment' is a concept adopted by certain major chains in . . Downtown Idea Exchange . www.DowntownDevelopment.com June 15, 2008 . recent years. But entertainment can be part of the downtown retail experience on a smaller scale. The Mustard Museum in downtown Mount Horeb, WI, has become a draw to many visitors because the business promotes inside jokes through products such as "Evaporate Your Eyeballs Hot- sauce" and collegiate T-shirts car- rying the name "POUPON D." Similarly, Das Wurst Haus in Lanesboro, MN lures customers in for German deli food (sausages, mustards, breads) with the sound of an accordion and the smell of great food. 5. Stores that celebrate local arts: Often people look to down- town as a place where local prod- ucts are sold. Unlike the regional mall, downtowns often have stores showcasing locally made jewelry, art, and gifts. Wind, Water and Light in downtown Champaign, IL features original pieces in a variety of mediums from 180 local and national artists. They developed a reputation as a gallery that edu- cates its customers about the art, the process, and the artists. 6. Stores that educate: Busi- nesses that provide the communi- ty with education to accompany their products often find down- town the most attractive place to do business. The Family Piano Co. has played an active role in the revital- ization of downtown Waukegan, IL. Not only does it sell and ser- vice pianos, but the shop offers tours, lessons, and performances. Scrapbook Attic in Fremont, OR sells scrap-booking essentials, but also offers free workshops. 7. Stores with a community and global perspective: A growing segment of the population is inter- . . June 15, 2008 ested in supporting businesses that help the local economy and con- tribute to a better world. Autumn Leaves has developed a niche in Ithaca, NY as a used book- store with the selection and quality of a new bookstore. It participates in the Ithaca HOURS program, a local currency effort in which 600 busi- nesses participate. By participating, these businesses help keep dollars local and promote growth of the Ithaca economy. A quarter of the merchandise at Earth and State, a pottery and gift store in Media, PA, is Fair-Trade certified. The focus at Earth and State is on local artists, but integrated with pottery and pieces from allover the world. 8. Gift and indulgences stores: Chocolate Harbor in St. Clair, MI is committed to the old- fashioned method of making every- thing from scratch. Customers can watch as they make caramel or fon- dant in the open kitchen, or view the making of fme German choco- late and hand-dipped truffles. Evolutions in Design in down- town Wausau, WI is a full-service floral business with five staff designers to help customers craft their own unique arrangements. The floral business also has a large retail area, where shoppers can buy items ranging from jewelry and gifts to furniture and local artwork. 9. Unique destination retail- ers: Many one-of-a-kind and inno- vative businesses successfully operate downtown. In Faribault, MN, Burkhartzmeyer Shoes prides itself on its understanding and care of feet. They retain two certified pedorthists (people trained in foot care), to assist customers in fmd- ing the perfect shoe. They attract customers from up to 50 miles away and have benefited from physician referrals. 10. Neighborhood-serving retailers: The growing downtown housing market requires conve- niences to support quality of life. Town Meat Market in Garden City, NY is an example of a full- service butcher characterized by high-quality products and excep- tional customer service. Their spe- cialty is dry-aged prime beef, but their selection of meats also includes fresh fish, lobster, chick- en, pork, veal, lamb, and a variety of sausages. They offer a door-to- door delivery service that operates six days a week. In Newport, VT, the Pick & Shovel Do it Best store is one of 4,100 independently owned hard- ware and home improvement retail- ers that are members of Do it Best Corp., which claims to be the only full-line, full-service buying coop- erative in the hardware, lumber, and building materials industry. The Newport store serves the surround- ing neighborhoods by filling local product gaps such as pet supplies, storage and organizing, electronics, and office supplies. Restaurants are also a key com- ponent to bringing people back downtown and can contribute to a vibrant retail center. While dining places add to downtown vitality and extend commercial activity into the evening, too many can give the appearance of a food court. Similar- ly, too many drinking establishments may actually discourage retail devel- opment. Accordingly, a balance between retail and food and bever- age establishments is necessary. Bill Ryan is a community business development specialist at the University of Wisconsin-Extension, Center for Community & Economic Development. Contact him at bill.ryan@uwex.edu. To nominate an Innovative Downtown Business, go to http://www.uwex.edu/ ces/CCED/downtowns/innovative. . Downtown Idea Exchange . www.DowntownDevelopment.com 3 Serendipity and the city play key roles in business recruitment - continued/rom page 1 "We partnered with them, and they're now part owners of the building with us. We made a deal that worked for everybody, to bring them into the building and into downtown," he says. The plan is for KL&A to occupy the building's main floor, and for Doug and Leslie Collins to make a pied-a-terre loft home for themselves upstairs. "I think it's going to have a very positive impact. Bringing roughly 20 well-paid engineers into the downtown area means people who will eat more lunches downtown, and shop downtown more since they'll be down there already," Collins says. Downtown could certainly use more professional office space to support itself economically, he adds. "It's filling a need. Bring in some of those primary jobs. Bring in outside money versus recirculat- ing the existing money in town." City incentive makes locating downtown easier The city has approved a $50,000 cash award to KL&A upon completion of the renovation pro- ject, payable once the company moves into its new downtown offices. "So we'll be cutting a check of $50,000 for the attraction of the 25 engineering jobs to down- town Loveland," says Betsey Hale, Loveland business development City prefers flexibility over policy in economic development efforts In Loveland, CO, the city does not have a formal economic devel- opment policy. Rather, the city council entertains incentive packages citywide on a case by case basis. "That offers them some flexibility in their decision-making process," says Betsey Hale, business develop- ment manager. For downtown, "we're looking at not only partnering for primary employment, but we're also partnering on redevelopment projects. When we had a Walgreen's [pharmacYl go out of business here in downtown, we partnered with a real estate developer on what's called the Lincoln Place URA project. It has two stories of parking and three stories of single-, double-, and family-occupancy apartments." Street- level retail includes a coffee shop and hair salon. The city agreed to waive its 3 percent tax on building materials on the parking structure as well as the commercial portion of the project, worth approximately $60,000. In the interest of the project's commercial viability, the garage's 292 parking places will be reserved for residents and retailers; it will not be a public facility operated in partnership with the city as first agreed upon. Still, the city's creation of an urban renewal district allowed the city to support the project with tax increment financing. 4 manager. The $50,000 will cover a new sprinkler system and complete electrical rewiring of the building, . which will make the building and downtown Loveland safer. KL&A, which currently has 19 employees at its suburban office and needed the larger space avail- able downtown to expand, will also be applying to the city for what will probably be a $50,000 facade improvement grant. ''About $100,000 of the project budget, about $1.3 million, was improvements in the utilities that were somewhat public improve- ments, because there was another building that was benefiting from the upgraded power and fire sup- pression system. When we see that over-sizing of utilities also benefits an adjacent property or a block in downtown, that's a natural fit for the city to partner on that, if it protects the health, safety, and welfare of the . citizens," Hale says. 'We're trying to use every tool that we can use." "When the city was made aWare of our move from the county to the city, they were very support- ive of trying to get us downtown," says Josh Olsen, project manager, KL&A. If there were no incentives from the city, "I can't say that it would have been totally unfeasible, but it certainly made the decisions much easier," he says. Building will showcase good, green design The renovation of the building will "certainly" showcase the engi- neering firm's own work, Olsen says. "We're going to incorporate our expertise to design some canopies for the front of the build- ing," he says, a part of the project that will take advantage of the . city's TIP-funded facade program. "More importantly, we're pur- Downtown Idea Exchange . www.DowntownDevelopment.com June 15, 2008 . suing LEED [Leadership in Ener- gy and Environmental Design] cer- tification for the building. That's a big buzz word in design, construc- tion, and engineering right now. We want to lead by example by going through that process." "You do it hoping that the value of your building increases, as you've done green building, and you've got more efficient appli- ances and HVAC systems. And it's just doing the right thing. If you can make it feasible in your pro- ject and do the right thing for the environment, and create a healthier work and living environment, it's just a better approach if it's feasi- ble," Collins says. . Keep efforts multi- departmental A top priority for all down- towns should be working to keep the primary employers they already have, Hale says, noting that Love- land is currently working to keep a primary employer downtown. "They may go into an existing building, or partner with us on a new project similar to Lincoln Place [see opposite page]. We're looking at every possible scenario." It's also critical for business recruitment and retention efforts to be multi-departmental, she adds. To that end, the City of Love- land maintains a city-run group called the Loveland Downtown Team that works on improving downtown's infrastructure, street- scape, and parking as well as busi- ness recruitment and retention. The group includes four of the city's nine city council members, downtown business owners, city development review people, and representatives of the building department, municipal utility, pub- lic works, and city finance depart- . June 15, 2008 ment. A city support staff prepares reports and recommendations made to the full city council. "You have to have the knowl- edge and experience at the table with the policy-makers and the cit- izens," Hale says, so that recom- mendations made to council are as well-informed as possible from multiple points of view. "Be innovative in your think- ing," she adds. For example, con- sider deferring building permit fees, say for five years. "If they don't have to put that money out on the front end of the project, they can get established or relocat- ed and be successful so that over some period of time they can pay it back." "The other thing we do specifi- cally for primary employment is an expedited review process, where we assign a rapid response team and do pre-application meetings." Olsen also stresses the impor- tance of maintaining open dialog between the city and private sector regarding potential relocation incentives. Incentives and expedited review aside though, space, ameni- ties, restaurants, and good parking are the top considerations for busi- nesses looking at locating down- town. "In our case, the business wanted to be downtown. They really like the atmosphere and the culture. All the great things that downtowns typically bring were a desire for them and their employ- ees," Collins says. "I think the ambience of being in a downtown area with all of its services provides good motivation for employees," Olsen adds. Contact: Betsey Hale, City of Loveland, (970) 962-2304, haleb@ci.loveland. co.us; Josh Olsen, KL&A, (970) 667- 2426, jolsen@klaa.com. . A recipe book for high-impact downtown revitalization projects - continuedfrom page 1 high-impact project for downtown is to "understand what your assets are. Almost every community has some kind of asset around which to focus a project," Klothen says. Those assets may be environmen- tal (e.g., a riverfront), cultural (a theater), educational (a college or university), infrastructural, archi- tectural, or historic in nature. "Any of these can be the core asset around which a revitalization project is built. But you have to do a real inventory of what your assets are, and figure out which are the best and most appropriate to form the core of a project. That's the critical thing going in," he says. In other words, to concep- tualize ideas for what downtown could do next to substantially improve, it's critically important to prioritize what it already has going for it. Good development ideas are always good for down- town because of their context. Build stakeholder support and go to market After the conceptualization comes the planning and implemen- tation. "Make sure that all of the stakeholders in the community understand the importance and pri- ority of the proposed project, and are supportive," says Klothen. Downtown Idea Exchange . www.DowntownDevelopment.com 5 "Then, of course, it's key to attract private developers," he says. "The kind of capital that you can generate in the public sector is not going to be sufficient to build and sustain a significant impact pro- ject. The public sector Can be and usually is critical in providing gap fmancing, and patient capital (e.g., soft loan terms) that makes a project economically viable. But it's got to have private sector involvement if it's a project of any significant scale and scope." Once the town is working with a downtown developer, "you have to do what's necessary in the pub- lic sector to expedite the permit- ting and zoning in order to make the project happen. That's a critical role that public officials play after a project is planned for." Understand what will and won't stop development The final step is: Make it hap- pen. "People in the public sector often think, 'We can never attract development because we don't have a big enough market,' or 'this place is too much of a brownfieId.' "What they'll hear from private developers is much more an emphasis on how prepared the municipality is to really expedite things like permitting and zoning, and how much unanimity of public opinion there is on the side of doing this particular project," Klothen says. "Developers will say that many of the other problems can be overcome when those fac- tors are present. That's important II~I Web Extras I 0-&> To read the Community Revitalization Desktop Guide, visit www.DowntownDevelopment.com and click on Web Extras. 6 Guide designed to serve as reference as a project moves forward Downtowns can view the Community Revitalization Desktop Guide as an interactive eBook and/or download a PDF version. The electronic format of the guide has distinct benefits. "It's almost like a recipe walking you through the steps of doing a development pro- ject," says Ken Klothen, deputy secretary for community affairs and development, PA Dept. of Community & Economic Development. "We've tried in the electronic format to make it user-friendly in that way, so that in a municipal government that's trying to do this, you can bookmark a page, send that page to a colleague, make notes in particular sections and send those notes to colleagues. It's really designed to be something that's used as a project goes for- ward," he says. "Of course, the other major advantage of the elec- tronic format is it can be updated by us easily and in real time, so it's much easier to keep this thing [relevant] as a working document." for public officials to hear." "Don't go public with vision- ary programs too soon," the guide advises. "Once municipality lead- ers have settled on a plan, they need to spend time figuring out its implementation. In particular, it is necessary to identify the four to five greatest obstacles the visionary program will likely face and work hard to reduce them in order to prevent the plan from becoming a political football. "Also, this time can be used to get "buy-in" from other leaders, including city administrators, city council members and business leaders. Their support will be nec- essary later on." A sense of what private developers really want With the DCED's own limited resources to provide technical assistance and so many small downtowns throughout the large state to advise, "we tried to find a way to provide useable, practical assistance to elected and appointed . officials, that would help them walk through this whole process. The end result is the Community Revitalization Desktop Guide. The guide includes four detailed case studies of cities and towns that have attracted their first high-impact private investment in decades, and interviews private developers who share how they choose a downtown site for invest- ment. It also includes interviews with mayors who have taken action to prepare their city to wel- come new investment. "The idea is to give people who haven't done [any high- impact downtown revitalization projects] yet a real sense of what private developers are looking for - what kinds of things they want of public sector officials that will make it more likely that they will invest. It's important for public officials to hear that directly from developers," Klothen says. Source: Ken Klothen, PA Dept. of Com- munity & Economic Development, (866) 466-3972, www.newpa.com/revitalize. . 1 ~ . . Downtown Idea Exchange . www.DowntownDevelopment.com June 15, 2008 . I f ~ ~ ~ r i . . Management Finding and keeping good board members for downtown involves political savvy Downtown Wilmington, NC (pop. 75,840), recently issued a public service announcement call- ing for volunteers to serve on the board of directors of Wilmington Downtown Inc. for the coming fis- cal year. The PSA started like this: "Wilmington Downtown, Inc., Wilmington's Downtown Area Revitalization Organization, is accepting applications for at-large positions on its 2008-2009 Board of Directors. The 36-member board includes representatives of civic organizations, governmental bodies, professional groups, and members of the community at large. ..." With such a large board to be appointed each year, it helps that 17 of those 36 positions are desig- nated according to specific roles in the public and private.sectors, says John Hinnant, executive director of Wilmington Downtown Inc. The downtown board's desig- nated appointees include represen- tatives from the city council, the county commissioner, city and county staff members, three indi- viduals from the [mancial sector, a real estate agent, a lawyer, an architect, a member of the hospi- tality industry, and members of other stakeholder groups like the Historic Wilmington Foundation, Residents of Old Wilmington, and the Downtown Business Alliance. For the remaining at-large board positions, there is no restriction based on job title or affiliation. Top qualities are being diligent, well-connected The board selection commit- tee consists of Wilmington Down- June 15, 2008 town's president-elect, president, and immediate past-president. "Typically, we look for folks who are going to roll up their sleeves ... We like folks who are going to come to the meetings and participate, and who don't mind picking up a little bit of the work- load," Hinnant says. The other top consideration in scouting for board members is to seek people who are part of the big players in downtown business, e.g., the general manager of down- town's largest (or sole) hotel. Big business reps sharpen fund-raising approach Wilmington Downtown has also benefited from recruiting board members from among the downtown's largest businesses. For example, a pharmaceutical research company that left down- town for the suburbs in the 1990s recently moved back, into a 490,000-sq.-ft. office tower that will be the workplace of some 2,000 employees. When the company moved downtown last year, Hinnant recruited one of its executives to serve on the board. "He's very, very informative when we're dis- cussing fund-raising," he says. "These large corporations get hit up constantly for community fund- raising events. He's been a very influential and informative person in telling us, 'Hey, you need to think about when and how you ask us for money.' He gives us the big corporate-guy understanding fund-raising." Set clear expectations, and keep it fresh and fun Being up-front about the time commitment board member candi- dates must make is essential. To help find board members who are already committed to the cause, Hinnant likes to scout people who are doing a good amount of work downtown, such as representatives of design and engineering or archi- tectural ftrms. "I also like to go after some of the developers who are active in downtown, because they're the ones moving dirt and building the tax base. And it's important to have them on your team," he says. "I think it's important that they have a very clear understanding of what's expected of them when they join. And if they are in a designat- ed slot - if the city manager des- ignates somebody to serve in that capacity - understand that their role and responsibility within their [paying] job description will be their priority over coming and sit- ting in a board meeting. If they have a staff division or department meeting, they're going to be there before they're here." Another key to keep in mind is don't wear out your board mem- bers. Results don't always happen quickly for downtowns, and that's not something that people should jump in expecting, lest they burn out after a year or two. To keep board members 'on board' with serving downtown, keep it fresh by mixing fun things in with the informative or dutiful things, and don't forget to thank them for their service, especially in public places and in front of their peers. Contact: John Hinnant, Wilmington Downtown Inc., (910) 763-7349, www.wilmingtondowntown.com. . Downtown Idea ExChange . www.DowntownDevelopment.com 7 Sometimes all you need to do is ask If you feel that improvements are needed downtown, sometimes you just have to speak up. When businesses and residents in the Theater Alley area of downtown Medford, OR (pop. 63,150), expressed the need for brighter lighting in the alley adjacent to the Craterian Theater, Valley Electri- cal Contractors donated and installed new light fixtures. In addition, Medford Urban Renewal Agency, in partnership with the Craterian, made it possible for existing lighting around the the- ater, alley, and public parking area to remain on during evening and nighttime hours. Merchants have also made the area safer by adding motion sensor lighting to their entrances. Land cost could derail development plans When planning any large downtown project, leaders must fully understand its scope. Plans for a new town center in Apopka, FL (pop. 26,640), ran into trouble when city council was informed it would have to spend more than $3 million to acquire additional land for the project. The new town center would include retail and office space, condominiums and apartments, four parking garages, a new city hall, and a library. Based on a market-demand analysis, which considered Apopka's demo- graphics and amenities, the city would have to purchase 12.8 acres in addition to the 20 it already 8 owns to make the development successful. "The town center will not happen without it," said a con- sultant for the project. "I wish I'd known we had to have X number of acres to be suc- cessful," said one councilman. New businesses bring new funds Sometimes the best place to look for new development funds is new businesses. They can often see the potential and opportunity that more established downtown stake- holders have overlooked. For instance, last year Eunice, NM (pop. 2,560), began preparing to invest millions of dollars on new water lines, a downtown beautifi- cation project, a new public swim- ming pool, and a new sewage treatment plant, in large part thanks to contributions from the town's new corporate citizen, Louisiana Energy Services. . Wave bye bye to downtown Wi~Fi? A few years ago, downtown Wi-Fi coverage was touted as the wave of the future. But as recent events in Philadelphia, PA (pop. 1.5 million), indicate, many are still struggling with how to harness the technology's potential. Internet provider EarthLink Inc. announced that it was discontinuing service to its subscription-based Philadelphia network, in which the Wi-Pi equip- ment was attached to streetlights. The network had been promoted as a model for how to deploy Wi-Fi, but reliability was an issue. Earth- Link also shut down a similar oper- ation in New Orleans, while the cities of Corpus Christi, TX, and Milpitas, CA, agreed to take owner- ship of the networks in their cities. "It was a great idea a few years ago, ... but it's an idea that simply didn't make it," Earthlink CEO Rolla Huff told the Associated Press. . . Whatto do with a budget surplus? It's a problem. many downtown. organizaticmswould like. to have __ extra moneyinthecoffers. But whatdo you do with thisextra~<:l$h? That questionwas discussed at a council meetinginH~rtford,WI - (pop. 1 0,91 0), early this spring. Revised property taxes,^,ould lea.yethe business improvement district with a large budget surplus fortheyear. The BID wanted to give the money back to business owners, and it requested. a change in the. assessment. rate. from $2.50 per$1,0()Q in assessed value to $2.10 per $1 ,000. Even. at the lower rate, the~ID would collect $40,665, or $254 more than. the. 2008 budget. ..... At. leastonealderperson suggestedkeepingJhe as~essrTlent rate at $2.50, with the additional. funds being u$ed for advertising and pro- motin9 dovvntown businesses. The BID president countered. thatthe. BID could operate effectively with its established budget No ruling was made at the time. . Downtown Idea Exchange . www.DowntownDevelopment.com June 15, 2008 Page 1 of 1 Peter Herlofsky en: Joel Jamnik [JJamnik@ck-law.coml Sent: Monday, June 23, 2008 11: 13 AM To: Peter Herlofsky Cc: Tom Scott Subject: Certificate of OccupancylExchange Bank Building Peter, Thank you for the update on the Exchange Bank Building and the news that the Browns completed the required improvements necessary to obtain a certificate of occupancy. Given that notable accomplishment, it is our recommendation that at the next EDA meeting we present a certification of completion for the project and a mutual satisfaction and release between the Browns and the City for the EDA's approval in order to wrap up and conclude the project. As part of that approval, the City would re-deed the property to the Brown's and return the security. There is no need for any formal action as part of tonight's meeting. If there are any questions regarding the resolution of this matter, please have the EDA member(s) contact me or my partner Tom Scott. Joel Joel J. Jamnik ca. en Knutson, P.A. 31 andale Office Center 13 orporate Center Curve Eagan, MN 55121 Direct Dial: 651- 234-6219 Cell: 651-470-0756 Fax:651-452-5550 Email: ijamnik@ck-Iaw.com IMPORTANT: This electronic message contains information from Campbell Knutson or its attorneys that is presumptively confidential and, if sent to clients or co-counsel, may be privileged or otherwise protected from disclosure. The unauthorized use, distribution, or re-transmission of any part of this message by an unintended recipient is strictly prohibited and may be a violation of law. If you are not the intended recipient of this e-mail, please contact the sender immediately and delete all copies. . 6/23/2008 Page 1 of 1 Peter Herlofsky .: Joel Jamnik [JJamnik@ck-law.coml Sent: Monday, June 23,200811:13 AM To: Peter Herlofsky Cc: Tom Scott Subject: Certificate of Occupancy/Exchange Bank Building Peter, Thank you for the update on the Exchange Bank Building and the news that the Browns completed the required improvements necessary to obtain a certificate of occupancy. Given that notable accomplishment, it is our recommendation that at the next EDA meeting we present a certification of completion for the project and a mutual satisfaction and release between the Browns and the City for the EDA's approval in order to wrap up and conclude the project. As part of that approval, the City would re-deed the property to the Brown's and return the security. There is no need for any formal action as part of tonight's meeting. If there are any questions regarding the resolution of this matter, please have the EDA member(s) contact me or my partner Tom Scott. Joel Joel J. Jamnik C.ben Knutson, P.A. 3 gandale Office Center 13 orporate Center Curve Eagan, MN 55121 Direct Dial: 651- 234-6219 Cell: 651-470-0756 Fax: 651-452-5550 Email: iiamnik@ck-Iaw.com IMPORTANT: This electronic message contains information from Campbell Knutson or its attorneys that is presumptively confidential and, if sent to clients or co-counsel, may be privileged or otherwise protected from disclosure. The unauthorized use, distribution, or re-transmission of any part of this message by an unintended recipient is strictly prohibited and may be a violation of law. If you are not the intended recipient of this e-mail, please contact the sender immediately and delete all copies. . 6/23/2008 Page 1 of 1 Peter Herlofsky en: Joel Jamnik [JJamnik@ck-law.coml Sent: Monday, June 23, 2008 11: 13 AM To: Peter Herlofsky Cc: Tom Scott Subject: Certificate of Occupancy/Exchange Bank Building Peter, Thank you for the update on the Exchange Bank Building and the news that the Browns completed the required improvements necessary to obtain a certificate of occupancy. Given that notable accomplishment, it is our recommendation that at the next EDA meeting we present a certification of ~ompletion for the project and a mutual satisfaction and release between the Browns and the City for the EDA's approval in order to wrap up and conclude the project. As part of that approval, the City would re-deed the property to the Brown's and return the security. There is no need for any formal action as part of tonight's meeting. If there are any questions regarding the resolution of this matter, please have the EDA member(s) contact me or my partner Tom Scott. Joel Joel J. Jamnik ca. ell Knutson, P.A. 31 andale Office Center 13 orporate Center Curve Eagan, MN 55121 Direct Dial: 651- 234-6219 Cell: 651-470-0756 Fax: 651-452-5550 Email: jjamnik@ck-Iaw.com IMPORTANT: This electronic message contains information from Campbell Knutson or its attorneys that is presumptively ~onfidential and, if sent to clients or co-counsel, may be privileged or otherwise protected from disclosure. The unauthorized use, distribution, or re-transmission of any part of this message by an unintended recipient is strictly prohibited and may be a violation of law. If you are not the intended recipient of this e-mail, please contact the sender immediately and delete all copies. . 6/23/2008 Page 1 of 1 Peter Herlofsky .: Joel Jamnik [JJamnik@ck-law.coml Sent: Monday, June 23, 2008 11: 13 AM To: Peter Herlofsky Cc: Tom Scott Subject: Certificate of Occupancy/Exchange Bank Building Peter, Thank you for the update on the Exchange Bank Building and the news that the Browns completed the required improvements necessary to obtain a certificate of occupancy. Given that notable accomplishment, it is our recommendation that at the next EDA meeting we present a certification of completion for the project and a mutual satisfaction and release between the Browns and the City for the EDA's approval in order to wrap up and conclude the project. As part of that approval, the City would re-deed the property to the Brown's and return the security. There is no need for any formal action as part of tonight's meeting. If there are any questions regarding the resolution of this matter, please have the EDA member(s} contact me or my partner Tom Scott. Joel Joel J. Jamnik ca. ell Knutson, P.A. 31 andale Office Center 13 orporate Center Curve Eagan, MN 55121 Direct Dial: 651- 234-6219 Cell: 651-470-0756 Fax: 651-452-5550 Email: jjamnik@ck-Iaw.com IMPORTANT: This electronic message contains information from Campbell Knutson or its attorneys that is presumptively confidential and, if sent to clients or co-counsel, may be privileged or otherwise protected from disclosure. The unauthorized use, distribution, or re-transmission of any part of this message by an unintended recipient is strictly prohibited and may be a violation of law. If you are not the intended recipient of this e-mail, please contact the sender immediately and delete all copies. . 6/23/2008 . . . II II i b;; s.:: ~ ~. ~ 'S3 (':> S. ....... E;;< 0\ "" -- s.:: N (';l W $:l... 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