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HomeMy WebLinkAbout10.09.06 EDA Packet - with notes City of Fannington 325 Oak Street Farmington, MN 55024 . A Proud Past - A Promising Future Committed to Providing High Quality, Timely and Responsive Service to All of our Customers AGENDA ECONOMIC DEVELOPMENT AUTHORITY WORKSHOP October 9, 2006 -7:00 p.m. Round Bank, Community Room Members 1. Call Meeting to Order Todd Arey (Chair) 2. Approve Agenda Paul Hardt (Vice Chair) 3. Discussion Erik Starkman a. Introduction ofMr. Craig Rapp and discussion ofICMA Peer Assistance review project Mr. Rapp introduced himself and presented a power point on Economic Development Strategic Planning and related items. Mr. Rapp and a specific team of peers will help the EDA with the Economic Development initiative. The timeline for this project is October 9, 2006 and will conclude at year end. Yvonne Flaherty . Chad Collignon Christy Jo Fogarty City Council David McKnight City Council Important Dates October 23 - Next regular EDA meeting November 13 - EDA meeting (Although the regular EDA meeting is typically the fourth Monday of the month, it was agreed upon that the regular EDA meeting in November will be moved to the 13th.) November 18 - Tour (provided by ICMA Peer Team - estimate approximately 6 hours) November 27 Special EDA Meeting (strategy session) December 11 - Follow-up Strategy Meeting (if required) Citv Staff Representatives Peter Herlofsky City Administrator Kevin Carroll Community Development Director Tina Hansmeier Economic Development Specialist 4. Adjourned @ 8:35 p.m. 325 Oak Street Fannington, MN 55024 . Phone: 651.463.7111 Internet: www.ci.farmington.mn.us { . v I./l .{\ ,::>'SU C . --c:~" t ,",~" I C"~ J / k ~ t l~:j .~(jJ~'V~ \ K:\TINA\Economic Development\EDA-HRA\EDA\Summary\100906 EDA Workshop - summary.doc City of Farmington 325 Oak Street Farmington, MN 55024 . A Proud Past - A Promisillg Future Committed to Providing High Quality, Timely and Responsive Service to All of our Customers AGENDA ECONOMIC DEVELOPMENT AUTHORITY WORKSHOP October 9, 2006 - 7:00 p.m. Round Bank. Community Room Members Todd Arey (Chair) Paul Hardt (Vice Chair) Yvonne Flaherty Erik Starkman . Chad Collignon Christy 10 Fogarty City Council David McKnight City Council City Staff Representatives Peter Herlofsky City Administrator Kevin Carroll Community Development Director Tina Hansmeier Economic Development Specialist 325 Oak Street Farmington, MN 55024 . Phone: 651.463.7111 Internet: www.ci.farmington.mn.us 1. Call Meeting to Order 'P~f. ) 2. Approve Agenda 3. Discussion 'I V 0 VLVl~ a. Introduction ofMr. Craig Rapp and discussion ofICMA Peer Assistance review project 4. Adjourn 1 , /' <\ -.0 v:> K:\HRA-EDA\Board Agendas (2006)\100906 EDA Workshop - new fonnat.doc . Springsted Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul, MN 55101-2887 Tel: 651-223-3000 Fax: 651-223-3002 www.springsted.com TO: Peter Herlofsky, City Administrator FROM: Craig Rapp DATE: October 5, 2006 SUBJECT: October 9 EDA meeting Peter, in anticipation of the meeting with the Economic Development Authority on Monday, I thought I would send out a memorandum and a couple of introductory documents to give us all a running start. On Monday night, I will present . both an overview of the process and a general discussion of strategic planning in an economic development context. As mentioned, one of the components of our process will be a tour of cities in the metro area that are good examples of economic development success. I anticipate that given most people's schedules that this will take place on a Saturday. However, we can accommodate anything that works for the group. The goal is to get a date firmed up on Monday, so I ask that everyone look at their calendars and/or bring them to the meeting. Early November seems like a logical time, but we can be flexible. Because this is an ICMA Peer Assistance project, I also wanted to introduce the Peer Assistance team to the EDA. I have assembled a strong group of ICMA members (both current and former City Administrators) who have the unique distinction of having served in an economic development or redevelopment role during their careers. . Craig Waldron, currently City Administrator in Oakdale, previously held the position of Community Development Director in Roseville, as well as economic development positions with Region Nine in Mankato and the Department of Economic Development at the State of Minnesota. Mark Nagel, formerly the City Manager in Anoka, where they did many successful downtown and industrial park redevelopment projects, also held the position of Executive Director of the Scott County Housing and Redevelopment Authority during his career. The third member of the team, Richard Fursman, former City Manager in Maplewood, not only has held three different City Manager positions, but also previously worked as Economic Development Director in Elk River. The team has a wealth of experience and is excited to get started on the project. Public Sector Advisors Page 2 As an aside, Craig Waldron and I teach a full semester class on Economic Development for Hamline University - . which can also be taken for certificate credit. An example of Craig's insights on economic development is attached in an article he co-authored for the League of Minnesota Cities monthly magazine. I've also attached a brief biography with my background. As you may know, I have not only spent time in the public sector working on economic development, I previously worked for a development company, and I was Managing Principal for a planning and urban design firm. I look fOlWard to kicking off this project officially on Monday. . . 1 . . . Craig R. Rapp Vice President As a Vice President for Springsted Incorporated, Mr. Rapp provides a wide range of consulting services to his clients. He particularly focuses on organizational development and training, as well as housing and economic development projects. Prior to joining Springsted, Mr. Rapp worked for over twenty-five years as a senior executive in both the public and private sectors, holding the positions of City Manager in three cities, Community Development Director of the Metropolitan Council of the Twin Cities, Managing Principal of a planning and urban design firm, and President of his own consulting finn. Mr. Rapp has extensive experience as a facilitator and trainer. He has worked extensively with organizations of all sizes conducting strategic planning retreats and working with community groups. He was responsible for facilitating the land use and station area planning process for the Hiawatha Light Rail Transit Line - the first LRT line in the Twin Cities - which involved dozens of neighborhood groups and government oversight committees. In addition, he developed a training course for public officials dealing with difficult political environments that he has presented throughout the United States. His considerable background in development includes service as City Manager of communities experiencing both high growth and significant redevelopment, including downtown revitalization. While in the private sector, Mr. Rapp assisted clients to create high quality projects and livable communities. He was directly responsible for bringing several large master planned and neo-traditional developments through the approval process, working directly with developers, city councils and development authorities. During his tenure at the Metropolitan Council, Mr. Rapp directed the implementation of the Metropolitan Livable Communities Act - landmark legislation that created a region- wide response to the issues of polluted land cleanup, affordable housing, and development innovation. In addition, Mr. Rapp oversaw the development of Metro 2040, the Twin Cities first growth management plan to incorporate the principles of smart growth and address the cost of growth. Education Minnesota State University - Mankato Master of Arts in Public Administration University of Minnesota Bachelor of Arts - Urban Studies Professional Sensible Land Use Coalition - Past President Association of Metropolitan Municipalities - Past President Metropolitan Area Management Association - Past President North Hennepin Community College Advisory Board - Past President League of Minnesota Cities - former Board Member Urban Land Institute - fonner Minnesota Executive Board Member Minnesota City-County Management Association International City-County Management Association - Full Member Adjunct Faculty, Hamline University , * * There are many ways to define economic development; however, they all share certain basic characteristics. The following is a general definition that describes those basic characteristics as . well as the policy considerations and the need for a defined plan to guide implementation. * * Definition of Economic Development The process of developing and maintaining suitable economic, social and political environments, in which balanced growth may be realized, increasing the wealth of the community. While this definition looks simple enough at first glance, an examination of each its component parts shows how complex economic development actually is. Economic development is a process. This highlights the fact that economic development has a series of steps that build on each other to create a desired product or outcome. For example, an economic development organization may identify the need to diversify the economy of a community. The organization would conduct research to determine ways the need could be addressed, choose the method that will work best given the resources available, develop a plan with goals and objectives, implement the plan and evaluate the outcomes. The evaluation would then be used to determine the success of the activity or assist the organization the next time it needed to address a similar problem. Process also implies there is evaluation at every stage. In this way the organization is able to make adjustments at each stage that will allow it to make better use of its resources and assist it in achieving its goals. The community or region must determine what it feels is suitable. The population characteristics, resources and the desires of the residents will affect the types of economic activity that will be accepted within the community. The suitability and compatibility of any activity with the people of an area and its existing businesses will impact its success. Although this limits the possibilities available, it focuses the efforts of the economic development organizations and helps it to effectively allocate its resources. . Reference to the economic, political and social environments highlights the fact that economic development does not happen in a vacuum. The economic, political and social aspects of life interact in complex ways. Economic development organizations must constantly monitor all aspects of the environment in order to develop strategies, goals and objectives that will achieve the desired results for their community or region. Balanced growth is an important consideration for a community or region. If the economy of a community or region depends heavily on one industry, it will feel the effects of the peaks and valleys of the business cycle of that industry. By encouraging the industry to expand into a number of different geographic markets or attracting different industries into the community or region, the "boom and bust" cycle can be managed. Through this diversification the impact of a single event in one market or industry on the local economy can be made less dramatic. Each community or region defines wealth differently. In many instances wealth is determined solely in financial terms. The estimate of wealth mayor may not include job creation, direct project costs, additional assessment base and/or lifestyle considerations. The members of an economic development organization should understand the complexity and subtleties of economic development in order to provide the leadership and direction needed to assist the municipality or region, its stakeholders, and its clients attain their goals . \ Refocusing Strategies For Work Force Readiness or those of us who have been involved extensively in economic development, the basic, tried and true approach has been to en- courage economic development through access to capital and facilities. In other words-incen- tives. As economic development specialists, we've used traditional financ- ing tools to our advantage. The private investment leveraged in many of our communities, through financial incen- tives, has been nothing short of but- standing. Despite all of these obvious signs of success, we are now observing a trend where job creation has started to outstrip our capacity to provide qualified personneL As a consequence, some companies have foregone or de- layed expansion. The Economic Development Strate- gies Task Force, which includes virtu- ally every economic development group in the state, was formed to en- courage a long-term, non-political strategy to facilitate growth in Minne- sota. In their strategy report, the task force pointed to a key emerging trend: "Not only has there been a shift away from natural resources to human re- sources, but there has been a move- ment to expeCt more from the work force. Computer capabilities, critical thinking skills, and team approaches are in demand. Expect numerous work force chang~ due to major demo- graphic shifts, the aging of the work force, and dramatic decline in the num- ber of new entrants." The task force outlined seven strate- gies to ensure our state's work force will be ready to compete: . Unite business and post-secondary educational institutions to prepare and train a competitive work force; . Support lifelong learning and the de- velopment of work force skills through adult education, training, and retraining; 3 6 By Craig Waldron and Lyle Wray . Create systems to assist workers with employment challenges associated with an emerging economy; . Ensure that welfare reform and hous- ing initiatives make meaningful con- tributions to the state's growing de- mand for new workers; . Implement a sustained public infor- mation strategy to help individuals, businesses, and institutions understand changing economic realities, and par- ticipate actively and successfully in the emerging economy; . Promote globally competitive stan- darcis in K-12 educational programs and accountability for achieving rig- orous standards; and, . Renew Minnesota's commitment to a high quality of life to retain and at- tract a highly talented and productive work force. The city of Oakdale is a case in point. In the early 1990s, Oakdale's in- dustrial parks were pushing up weeds. The proposed Oakdale site for 3M's Carlton Park sat vacant as the expansion went to Austin, Tex. The east side of the metro area was unproved develop- ment territory. Oakdale developed an aggressive economic development program. The city used all available tools to accom- plish its goal, but the tools primarily fo- cused on more traditional financial in- . centives like taX increment financing and low-interest loans. Oakdale in- vented a number of innovative funds, including a revolving "seed" fund. Al- though unique and aggressive, these programs were heavily incentive-ori- ented. Fortunately the approach was extremely successful. The city has seen more than one million square feet of industrial! office development, which has produced roughly 2,000 jobs and $54 million in private investment. Today, the city is made aware of its work force needs through its Economic Development Commission comprised MINNESOTA CITIES of representatives from companies do- ing business in Oakdale. The discussion has now shifted from the need to com- pete with more and more incentives, to the need to find qualified employees. From a community-based perspec- tive, Oakdale is involved in this "new" focus through a Work Force Readiness Task Force, made up of business as well as citizen representatives. Oakdale and its business community convened a job fair inJanuary in an effort to explain manufacturing careers to high school stUdents. Also on the school front, Jim Jackson, president of Classic Manufac- turing, is developing a high school pro- gram to encourage students to consider manufacturing related jobs as viable ca- reers. Oakdale is also working with Ramsey and Washington counties to develop a red-tape free, one-stop link for employers while exploring the po- tential of customized training with Century College. From a local perspective, the path to success is clear. We should first support a coherent, long-term, non-political economic development strategy--one which properly focuses the state's in- vestment into the appropriate priorities and ensures the training of our work force. Subsequently, local communities can begin integrating efforts and work plans within the statewide investment framework. To get results locally, we will have to shift from traditional, competitive financial incentives to collaborations between different sectors, both public and private, to build a qualified work force for our growing companies. .. Craig Waldron is dty administrator oj the dty oj Oakdale. Lyle Wray is executive di- rector oj the Citizen's League and an ad- juna professor at Hamline University. MARCH 1998