HomeMy WebLinkAbout01.25.10 EDA Packet
AGENDA
ECONOMIC DEVELOPMENT AUTHORITY
January 25,2010 - 7:00 p.m.
City Council Chambers, City Hall
1. Call Meeting to Order
Authoriiy Members
2. Pledge of Allegiance
Chair, Christy Jo Fogarty
3. Approve Agenda New Business
Vice-Chair, Steve Wilson a. Organizational Matters
Terry Donnelly I. Election of Officers
II. Adoption of By-Laws
Mayor Todd Larson III. Official Newspaper
IV. Meeting Schedule
Julie May
4. Citizens Comments/Presentations
Executive Di rector,
Peter Herlofsky
City Administrator
5. Consent Agenda (see attached)
a. Meeting Minutes: 11/23/09
b. Bills
i. November 23 - December 31, 2009
ii. January 1- 22, 2009
c. Budget Details: November 2009
d. School & Conference - EDAM Winter Conference
e. School & Conference - Ehlers Public Finance Seminar
City Staff Representatives
lina Hansmeier
Economic Development
Specialist
Cindy Muller
Executive Assistant
6. Public Hearings (None)
7. Continued Business
430 Third Street
Farmington, MN 55024
8. New Business
a. Strategic Planning & Goal Setting Workshop Outline
b. Economic Update Distribution
c. EDA Property Update: 305 3rd Street
d. Grubb & Ellis Industrial Vacancy Report
e. Review Economic Development Division Website (verbal)
Phone: 651.280.6800
htto:/ /www.ciJarmington.mn.us
9. City Staff Reports/Open Forum/Discussion
a. Economic Update/ Volume 29
b. Downtown Promotion Reporter
10. Adjourn
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 worliforce housing and by expanding the tax base through
development and redevelopment.
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City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
Tina Hansmeier, Economic Development Specialist
SUBJECT:
Annual Organizational Matters
DATE:
January 25, 201 0
INTRODUCTION
Attached are the proposed 2010 Economic Development Authority (EDA) By-Laws in the same format as the
approved 2009 By-laws.
DISCUSSION
At the regular January EDA meeting, the Authority shall review and provide direction regarding the following:
a. Adoption of By-laws
A copy of the proposed by-laws are enclosed. If they appear to be acceptable, a motion to
approve and adopt the by-laws would be in order.
b. Eledion of Oeicers
Section 1, subd. 3 of the EDA By-Laws provides that each year, the EDA shall choose a
Chairperson and Vice-Chairperson. In the past, the EDA's procedure in this regard typically
involved a nomination for Chairperson, a second, and a vote, followed by a similar process
for the Vice-Chairperson.
c. OHicial Newspaper
Section 1, subd. 3 of the EDA By-Laws provides that each year, the EDA shall designate the
official newspaper. A motion to designate the Farmington Independent as the official
newspaper would be in order because it is the only newspaper within the City's corporate
limits.
d Meeting Schedule
Section 1, subd. 3 of the EDA By-Laws provides that each year, the EDA shall establish a
meeting schedule for the year. The City's 201 0 Boards and Commissions calendar is
attached.
ACTION REQUESTED
Please provide action for the above listed items.
Respectfully submitted,
"
'i '
/~~~
ina Hansmeier,
Economic Development Specialist
2010
ECONOMIC DEVELOPMENT AUTHORITY BY-LAWS
These By-Laws, when adopted, are intended to deal with matters not otherwise covered by State Law,
City Ordinance or elsewhere.
Section I - Meetine:s
SUBD. 1- Regular meetings of the Economic Development Authority shall be held on the fourth (4th)
Monday of each month at 7:00 PM. Any regular meeting falling upon a holiday shall be held on the
next following business day at the same time and place. All meetings, including special and adjourned
meetings, shall be held in the City Hall unless otherwise designated.
SUBD. 2 - Special meetings of the Authority may be called by the Chairperson or in written form by
any other two (2) members of the Authority, filed with the Executive Director. The Executive Director
may also call a special meeting. At least three (3) days before the meeting, the Executive Director shall
notify each member of the time, place and purpose of the meeting by causing written notice thereof to
be delivered to himlher personally ifhelshe can be found, or, if he/she cannot be found, byJeaving a
copy at the home of the member with some person of suitable age and discretion residing therein. At
least three (3) days prior to the meeting, the Executive Director shall also post notice of the meeting
and if applicable, notify each person who has filed an applicable written request for notice, or may, if
necessary, provide such other more restricted notice, including but not limited to (as allowed by
Statute, such as) M.S. 471.705, subd. lC, paragraph g, "if a person receives actual notice ofa meeting
of a public body at least 24 hours before the meeting, all notice requirements of this subdivision are
satisfied with respect to that person, regardless of the method of receipt of notice." Emergency
meetings may be held because of circumstances that, in the judgement of the Authority require
immediate attention. The notice of special meeting shall state the item( s) to be discussed and acted
upon. Items not stated in the notice may be discussed, but no action may be taken if any member
objects.
Any special meeting attended by a majority of the Authority members shall be a valid meeting for the
transaction of business that may come before the meeting.
SUBD. 3 - At the regular Authority meeting in January of each year, the Authority shall (1) designate
the official newspaper; (2) establish meeting schedule for the year; and (3) choose a Chairperson and a
Vice-Chairperson, who shall perform the duties of the Chairperson during the Chairpersons disability
or absence and in case of a vacancy in the office of Chairperson and until a successor has been
appointed and qualifies to fulfill the duties of Chairperson.
SUBD. 4 - All Authority meetings, as defmed by State Law, including special and adjourned meetings
shall be open to the public. The Authority Attorney shall advise the Authority in writing as to his
interpretation of the state "Open Meeting Law" and all new members shall be provided such written
interpretation.
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Section II Presidinl! Officer: Rules of Order
SUBD. 1- The Chairperson shall preside at all meetings of the Authority. In the absence of the
Chairperson, the Vice-Chairperson shall preside. In the absence of both, the Executive Director shall
call the meeting to order and shall preside until the Authority members present at the meeting choose
one of their numbers to act temporarily as presiding officer.
SUBD. 2 - The presiding officer shall preserve order, enforce the rule of procedure herein prescribed,
and determine all questions of procedure and order. Except as otherwise provided by statute or by
these rules, the proceedings of the Authority shall be conducted in accordance with the following rules
of order:
A. A Motion must be seconded before being considered by the Authority and the
The presiding officer must recognize mover, as well as the seconder.
B. Any motion may be withdrawn by its mover with the consent of his /her second. But a
motion, once debated, cannot be withdrawn except by a majority vote of the Authority.
C. A motion will not be subject to debate until it has been stated by the presiding officer
and he/she has opened it to debate.
D. Each member, while speaking, shall confine himself/herselfto the question at hand and
avoid all personal, indecorous or sarcastic language.
E. Whenever any member of the Authority desires to speak on any question, which affects
him/her personally, helshe shall fIrst vacate his/her chair and shall not resume his/her
seat until the matter under consideration has been acted upon. He/she shall be allowed
to make comments on the question as a private citizen only and while a member of the
audience.
F. Whenever public hearings are held, the presiding officer, shall allow any member of the
public, the privilege of speaking. A reasonable time shall be allowed to anyone as long
as they are not repeating points already made. The presiding officer shall maintain
order and may rule anyone out of order.
G. At any meeting, the presiding officer will allow the public to participate as long as there
is reason to believe the input is benefIcial.
SUBD. 3 - Any member may appeal to the Authority from a ruling of the presiding officer. If the
appeal is seconded, the appealing member may speak fIrst on the reason for his/her appeal. General
discussion can then take place on the appeal before a vote. The appeal shall be sustained if it is
approved by a majority of the members present.
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Section III - Ae:endas
SUBD. I - The agenda shall be prepared by the EDA Executive Director and shall be closed at noon
on the Wednesday preceding the meeting for publication purposes.
SUBD. 2 - Any member may place an item on the agenda by so instructing the Executive Director.
SUBD. 3 - No item shall be placed on the agenda unless the item is expressed in such a way as to
clearly show the subject matter involved
SUBD. 4 - The agenda add-ons are subject to approval by a majority vote of the members present and
further such add-on items may be discussed, but no action may be taken if any member objects.
Section IV - Order of Business
SUBD. I - Each meeting of the Authority shall convene at the time and place appointed therefore.
Authority business shall be conducted in the following order:
I) Call to Order
2) Pledge of Allegiance
3) Approve Agenda
4) Approve Consent Agenda
a. Bills
b. Minutes
c. Additional Consent Agenda items
5) Public Hearings
6) Continued Business
7) New Business
8) Executive Director's Report
9) Adjourn
SUBD. 2 - The order of business may be varied by the presiding officer, except that all public hearings
shall be held at the time specified in the notice of hearing.
Section V - Minutes
SUBD. I - Minutes of each Authority meeting shall be kept by the Executive Director or, in his/her
absence, his/her designee. In the absence of both, the presiding officer shall appoint a secretary pro
tem. Resolutions need not be recorded in full in the minutes if they appear in other permanent records
of the Executive Director and can be accurately identified from the description given in the minutes.
SUBD. 2 - Minutes of each meeting shall be reduced to typewritten form, shall be signed by the taker,
and copies thereof shall be delivered to each Authority member as soon as practicable after the
meeting. At the next regular Authority meeting following such delivery, approval of the minutes shall
be considered by the Authority. The minutes need not be read aloud, but the presiding officer shall call
for any additions or corrections. If there is an objection, the Authority shall vote upon the addition or
correction. If there are no additions or corrections, the minutes shall stand approved by motion. If
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there is an objection, the Authority shall vote upon the addition or correction and approve the minutes
by motion as amended.
Section VI - Quorum and V otine:
SUBD. 1 - At all meetings a majority of all members shall constitute a quorum for the transaction of
business.
SUBD. 2 - The votes of members on any question pending before the EDA shall be by voice votes.
Roll call vote can be requested by any member, except for the following agenda items; approval of the
agenda; approval of the consent agenda; and the adjournment. The names of those voting for and
against the question shall be recorded in the minutes. If any member present does not vote, the
minutes shall state: "Abstain: Name".
SUBD. 3 - Except as otherwise provided by statute, a majority vote of the quorum shall prevail.
Section VII - Executive Director
The Authority may appoint and provide for annual performance reviews of an Executive Director.
Section VIll- SusDension or Amendment of the Bv-Laws
SUBD. 1- These by-laws may be temporarily suspended by a unanimous vote of the members present.
SUBD. 2 - These by-laws shall not be repealed or amended except by a majority vote of the whole
Authority after notice has been given at some preceding meeting.
Section IX - Effective Date
SUBD. 1- These by-laws have been adopted by the
on the day of
immediately.
.20
and becomes effective
Attest:
EDA Executive Director
EDA Chairperson
Date:
Date:
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MINUTES
ECONOMIC DEVELOPMENT AUTHORITY
Regular Meeting
November 23, 2009
1. CALL TO ORDER
The meeting was called to order by Chair Fogarty at 7:00 p.m.
Members Present: Fogarty, Larson, May, Wilson
Members Absent: Donnelly
Also Present: Peter Herlofsky, City Administrator; Tina Hansmeier, Economic
Development Specialist; Lee Smick, City Planner
2. PLEDGE OF ALLEGIANCE
3. APPROVEAGENDA
MOTION by Larson, second by Wilson to approve the Agenda. APIF, MOTION
CARRIED.
4. CITIZEN COMMENTSIPRESENTATIONS
5. CONSENT AGENDA
MOTION by Larson, second by Wilson to approve the Consent Agenda as follows:
a) Meeting Minutes October 26,2009
b) Bills October 19 - November 19,2009
c) Budget Details October 2009
d) Industrial Park Project Budget
e) McVicker Lot Reservation Form, FDBA
f) Farmers' Market 2009/2010
APIF, MOTION CARRIED.
6. PUBLIC HEARINGS
7. CONTINUED BUSINESS
a) Industrial Park Project Strategy
The EDA had directed staff to move forward with the wetland delineation.
Economic Development Specialist Hansmeier explained that the delineation could
be done now, however we would have to revisit the delineation in the spring to
confirm the boundaries. The report does expire three years after it is done. After
meeting with the consultants, it was determined staff could fill in the pieces such
as wetland delineation, appraisals, agreements, etc, and identify the timing it
would take to accomplish each of these items. Once the market begins to change,
then staff would know where to start. The plan would involve all the items
needed to open up that area for development. Not knowing when the market will
EDA Minutes (Regular)
(November 23, 2009)
Page 2
turn, staff recommended not spending any additional money at this time. The
EDA could focus on filling vacant spaces. There are a couple buildings vacant
and a couple lots for industrial development. Staff would also focus on business
retention, targeting the industrial businesses.
Member Wilson asked why new development and business retention have to be
exclusive. Staff explained they would focus on filling vacancies and meeting
with industrial businesses now. The long term vision would be wrapping up
additional tasks so when the market turns, we are ready. City Administrator
Herlofsky suggested postponing the delineation until next spring when it would
be more financially appropriate. The other issue is the amount of time it takes for
retention meetings. Staff had 75 business retention meetings last year. City
Planner Smick explained we are slowing down on the industrial park because
there are a lot of vacancies in Eagan which has good access to the airport and the
interstate. People are leaving the Eagan area and there is a lot of open space,
enough for two to three years.
Mr. Bruce Maus, consultant, is in the process of putting together a report to show
what the general industrial vacancy is from Farmington and going north covering
Rosemount, Apple Valley, Eagan. There have been a lot of vacancies. The report
is being done to show how this would affect the timing for the industrial park
expansion. Mr. Maus felt it would be better to focus on retention and the space
already available in Farmington. Member Wilson noted there have been a series
of conflicts over the last couple months. A couple months ago they thought the
timing was good to proceed. At the last meeting we were on the verge of
approving a wetland delineation and now, which is the proper discussion, we are
talking about analyzing where the market is relative to other industrial park areas.
He felt he was getting different messages in the wrong order. He said 6-12
months ago they needed to be cautious with the market. Getting conflicting
information is making it difficult to make a decision. Mr. Maus stated the
economy fell the first quarter and they were getting a handle on the information
this summer. The capital markets have not freed up so small companies can
obtain financing for facilities. If they are looking to grow, they are looking to
lease space rather than build. Larger companies that have money available also
want to lease for 2-3 years because the economy is uncertain and then build.
There are very few people that want to build and most want to lease. The
underwriting criteria has gone from 75% to 60% loan to value. That is
compounded by the appraisal community and the changes that have occurred in
the last six months. Appraisers are tending to be more conservative.
Member May agreed that banks have a lot of pressure to not do commercial real
estate lending. She was not sure this all happened in the last six months and
wondered if we spent $25,000 needlessly. There was a lot more discussion about
needing to be ready. Mr. Maus stated he spoke about being ready because
companies will only locate in communities where they have sites ready to go.
That is still true, but as budget resources might be limited, how fast do you move
EDA Minutes (Regular)
(November 23,2009)
Page 3
on that in these circumstances. We still need to be ready some day, but do we
slow it down because of the slow down in the community. None of the work was
wasted. There isn't a shelf life to the planning that has happened. Member May
stated there could be landowners that are willing to move forward and pay for the
development. At the last meeting the EDA discussed how willing the land owners
are to move forward. At least one is not willing, but perhaps others are. Mr.
Maus stated the City will grow according to the comprehensive plan. He was
asked how the schedule would be affected in terms of the economy over the last
12 months. They looked at vacancies, how fast that is moving, and how it will
affect Farmington.
Member Larson agreed with Members May and Wilson and was glad we caught
this now before putting in streets. He asked staff when they go to existing
industrial owners what kind of information are they looking for. Economic
Development Specialist Hansmeier replied she has approached it as an outreach
that City staff is available for anything they need. They talk about how business
is doing and if they have plans to expand, what brought them to town, businesses
that might compliment their business if they were to relocate close to them.
Member Larson asked if expanding the industrial park has been discussed with
them. Staff replied it has been, but the majority of the visits happened last year.
As far as the visits in the industrial park, there were two that would need more
space. They were unsure if they were able to build a building on their own.
Member Larson asked if there were lots available now that would fit their needs.
Staff replied not that would fit their needs. They were looking for more building
space, but not to build their own building so they do not need a lot. Member
Larson stated we were going to go ahead with the report and building streets, then
we stopped, then started again, and now are we comfortable with slowing down.
Chair Fogarty stated the reason Mr. Maus and Mr. Mann are here is because staff
expressed concerns to her about the EDA' s desire to move ahead. Staff is
following our direction. One problem is we are in an environment where the
community is pushing Council and the EDA very hard for economic
development. The reality of economic development may not be the same as what
the community thinks it is. We are in a market where there is not a lot we can do.
lt is possible we need to do exactly what staff is talking about. We need to make
sure we are ready, zoned properly, plans in place and that we are reaching out to
our current businesses. They are our best source of more business to come to
town. She felt the EDA was very quick to dismiss that work as not being
economic development and she felt it is.
Member Wilson disagreed. He indicated a couple months ago that he wanted to
make sure we did not shelf this. He did not give direction that not putting it on
the shelf meant to do wetland delineation. There is a major difference between
not shelving it and having a tickler plan. If residents do not understand why a
certain business is not here, he can defend that by saying right now we are in a
tough environment. In order for industrial business to be here, it will take more
EDA Minutes (Regular)
(November 23, 2009)
Page 4
investment from the taxpayers to make that come now. He felt the EDA has
gotten very inconsistent direction on this item.
Member May stated a big part of this job is sales. She asked if we were going to
focus on current business or still try to sell the new industrial park. Chair Fogarty
felt that is where we need to do a strategic plan. The EDA has been very focused
and driven on what economic development means. The board has never defined
what they want. Member May felt staff saw the EDA's role as team work,
whereas she was looking more for direction from staff and consultants than the
EDA giving direction. The EDA is here to look at options. She wanted staff to
give the EDA options to review. The way Chair Fogarty described it, it is flip
flopped. Member May did not know how she was supposed to give the layout of
how staff is supposed to do their job. Chair Fogarty replied she was thinking in a
strategic planning session staff giving the EDA different options that they should
or could be pursuing. It has been very patch worked so far in finding a way to
bring it into a comprehensive plan. She did not feel the EDA has a solid
direction.
City Administrator Herlofsky stated staff has been trying to determine if they
were doing the best thing with wetland delineation. Staff was suggesting to
revisit it in three or four months. Mr. Lee Mann, consultant, stated it can be done
now or later. Ifwe do it now, it will have to be revisited. City Administrator
Herlofsky stated we do not have willing sellers. He suggested taking time at a
meeting to determine where the EDA is going. We have the fourth group of
people within the last three years dealing with development. Staff is trying to
determine what they can do to make the EDA happy and also have some
performance measurements. Chair Fogarty stated some of the frustration is
Member Donnelly brought up there may not be willing sellers. She was
completely unaware that there was anyone who was an unwilling seller. She was
under the impression there were people who were more interested and less
interested, but everyone was on board. That is an example of the frustration the
EDA is having because then it is difficult to make decisions with information that
is incomplete. City Administrator Herlofsky stated the environment has changed.
Staff tries to do what is reasonable, and then it changes. If staff did not share that,
we would not be doing our jobs.
Member Wilson responded if the EDA has not done one thing, it is to reinforce
what has been explicit, clear direction. We have City Planner Smick and her team
that has put together a solid Economic Development Chapter in the
Comprehensive Plan. He was all for planning, but had very little confidence
anything will be different because we have already given direction and we need
staffto respond back and challenge the EDA that here is where we are at. He felt
the EDA has been explicit with giving direction over the last three years. We
need some staff reaction and continuity. City Administrator Herlofsky stated staff
is trying to get clarification. If the economy slows down, and we are doing
something, we want to make sure what we are doing is still the EDA's objective.
EDA Minutes (Regular)
(November 23,2009)
Page 5
If 60 visits to businesses will be our objective, we want the EDA to see that as a
continuation of the overall plan, but a change in performance measurements the
EDA would consider appropriate. Over the last couple years we have had CVS,
Fairview Clinic and offices come into the community. Staff did nothing special to
bring them in other than having the area zoned, worked with them when they
came in and set it up. Member Wilson stated the dialogue at this meeting versus
the last meeting where we were on the verge of approving a wetland delineation
and then now we learn there is a shelf life, and the economy in the south metro
has a lot of vacancies. As a decision maker that information could not have been
that different two months ago, which would have influenced decisions made in
October. That is not a strategic planning item, that is understanding where you
are in the process and offering the correct guidance at the right time. We were
about ready to make a decision that has a shelf life. City Administrator Herlofsky
stated the issue of having the area shovel ready had some real significance with
this board. The EDA's intention was to move as quickly as possible. When staff
had reservations that is when we called the consultant and asked if we were doing
the right thing. The information shared tonight is what staff learned. Even
Lakeville still has a lot of room for expansion. With limited funds available, staff
wanted to determine if this was the right time. He noted the market study is from
2007 and wondered if we need to revisit some of these items to see if we are still
working off the right information to come up with the right answers. Member
Wilson stated following the discussion at the last meeting is what prompted the
call to the consultants, but we could have had wetland delineation started having
called the consultants one month too late. Chair Fogarty stated the reason it was
brought to the EDA in October was because the board directed staff to do the next
steps to help industrial development. She did not disagree there was a step that
was missed, but felt it was unfair for the board to not take responsibility for
putting us in that direction.
Member May stated as far as CVS and Fairview, what came to her mind was low
hanging fruit. It is tough to be a banker now and we are all after that low hanging
fruit. The ones that will survive will figure out a way to make those connections
and relationships so we are ready to pull the plug on a study and be two steps
ahead of the competition. As an EDA member she is looking for some ideas and
brainstorming of how we can keep ourselves out there, whether it is having the
land ready, or right now it is more about relationships. How can we make sure we
are in front of this information so we are ready to pull the plug? That is what is
lacking from the EDA, but we need to keep throwing things out there. The site
visits are a great idea, but that is low hanging fruit. That should be part of your
job no matter what. We do not want to lose something we have, but how do we
set ourselves apart without having the land ready. It is hard to figure out how to
generate business so when we do get asked, then we have these things we are
developing, or getting involved with this organization, or that trade group, etc.
That is what we need to be working on. City Administrator Herlofsky agreed, but
the issue is how do we differentiate that. That is going back to taking time to
make those visits. Our best spokesman for the community is not staff saying we
EDA Minutes (Regular)
(November 23,2009)
Page 6
are the best place, it is making good relationships with the businesses, so the
business owners say the best place they have been is Farmington. They visit us
once every other year, ask how things are going. I had a problem and they took
care of it. Those are long term objectives. Member May agreed, but we do not
want to be in a bubble so we need to make sure we are feeling the pulse of what is
going on around us. She has not gotten the feeling we have been doing that. City
Administrator Herlofsky stated the next thing they wanted to bring up was how do
we update our staff based on the current economic conditions and still make sure
we are getting information. Staff has discussed having someone come in a couple
hours a month and ask about the current situation. We can use periodicals, we
can contract with a firm, something to provide that extra comfort level. Member
May felt staff could obtain that information and summarize it for the EDA rather
than sending the whole report. She would like to get information from staff on
specific industrial growth. City Administrator Herlofsky stated staff will put
wetland delineation on a tickler for next spring for further discussion.
City Planner Smick wanted to discuss the planning of the industrial park. She
asked Mr. Mann to discuss what he sees as the package for the industrial park,
such as wetlands, soil borings, what needs to be done in the future. Mr. Mann
stated what would be helpful to the EDA in making decisions is to identify the
critical path and the tasks to get the area ready for development. He would like to
identify the timeframe for the wetland delineation, the soil borings, the appraisals,
the land acquisition, the plans and specs, etc. From that point, take a stab at a date
when the industrial park will have interested people. Then we have a critical path
and a time frame that is known. If it is in three years, then we can determine when
to start. The EDA could look at it periodically and if the economic indicators
change, then move up the start date to hit the goal date. Then you have a
timeframe for when the market need will be there for the industrial park. That is
what staff was talking about with the critical tasks.
Chair Fogarty felt that is precisely what the EDA is looking for and what they
wanted staff to bring to them. Something they can approve or disapprove.
Member Larson agreed that cleared it up. Member May wanted to be careful we
are not sitting back and waiting for the phone to ring. We have more difficult
work to do. Mr. Maus stated he is a strong advocate for being shovel ready. He
did not get a sense there was a change in direction when staff called. Things have
changed in the economy and staff wanted to make sure it was the right time to
spend. Member Wilson asked for an estimate of the cost to have Mr. Maus and
Mr. Mann do consulting for the City. City Administrator Herlofsky would have
to work that out with them. Member Wilson felt it would eliminate the need for
the EDA to have a "solve the world session" for a third year. He would rather
have expertise from the street and work with it, be updated, and offer advice. He
felt the Economic Development staff needs to be all over the local relationship
management circles and be communicating with the consultants and then
information can be periodically provided in a dialogue to the EDA that would
impact positively or negatively the direction that has been laid out.
EDA Minutes (Regular)
(November 23,2009)
Page 7
Member Wilson would like to have City Administrator Herlofsky negotiate with
Mr. Maus and Mr. Mann on options for consulting. Chair Fogarty agreed their
information has been helpful. Member May preferred to have this discussion as
an Executive Session with just EDA members if we are talking about direction
and consultants. She felt it encompasses more than that. City Administrator
Herlofsky will check with the City Attorney, but he was not sure there is
sufficient reason for a closed session. Chair Fogarty felt there had to at least be
an attorney present. Short of labor negotiations and litigation issues, there is not
much we can close a meeting for. Member May felt you cannot talk about
staffing issues either way. Either you bring it up and you get chastised or we say
let's sit down and talk with the City Administrator about it, and now we cannot do
that either. She brought it up because they talked about an Economic
Development Director and if we are going to talk about hiring consultants, she
would like to have a discussion about hiring a director. Member Wilson stated we
did direct that type of discussion back to the EDA. Chair Fogarty felt that item
should be in a workshop.
Chair Fogarty stated the direction to staffis to come up with a work plan without
a date, that can be implemented and work on a date that is optimistic.
b) AK Performance Graphics Update
Staff received a letter from the developer's banker indicating where they are in
the process. The owner is waiting for bids to compile the final construction costs
and then forward them to the banker. Once the bids are received, the bank board
will review them and make a final determination. All bids should be received this
week and the board meets every Wednesday. Chair Fogarty asked if the bank
feels this will be approved. Staff replied it looks promising. Member May asked
if there was any more feedback from Pellicci' s or anything on the procedure.
Staff has not heard any more information.
8. NEW BUSINESS
a) 2010 CnBG Application and Reprogramming of Unspent Funds
Each year the City has the opportunity to apply for CDBG funding. This year the
City received 10% more than last year which is $47,213. Staff recommends
allocating 50% of the funding to residential rehabilitation, 50% to park
improvement for the Fairhills Park and reprogram $15,000 of unspent funds for a
Historic Preservation Rebate program, and modify the existing CDBG funded
Business Reinvestment Loan Program from a 2: 1 match to a 1: 1 match.
Chair Fogarty asked about the low to moderate income areas on the map they
were given. Staff explained those are low to moderate income census blocks
determined with the 2000 census. The families within those areas are low to
moderate income from the information in the census. Chair Fogarty did not agree
that the areas shown are low to moderate income. City Administrator Herlofsky
explained that is why they will be promoting everyone participate in the 2010
EDA Minutes (Regular)
(November 23,2009)
Page 8
census to make sure the information is accurate. Economic Development
Specialist Hansmeier explained that park improvements can be done in areas that
draw from low to moderate income users. The data they look at is drawn from the
census block.
Chair Fogarty asked why FairhiIls Park was chosen over Rambling River Park,
because something that was taken out of the budget was to redo the tennis courts
at Rambling River Park. Staff explained Rambling River Park draws residents
from outside the general area. FairhiIls Park draws from the neighborhood.
A discussion followed about CDBG funding. Over the last few years there has
been greater emphasis on CDA money and using it in the community. Member
May asked if the Historic Preservation Rebate program was specific to downtown.
Staff replied it would pertain to downtown because of the older buildings.
Member May asked ifthere were other programs to choose from as she did not
want to forget about businesses on the north side. Chair Fogatty felt the
downtown could more readily use CDBG funds. City Administrator Herlofsky
explained the purpose of the CDA is to help areas that need help. Economic
Development Specialist Hansmeier explained there are other categories of uses.
One could be to help offset assessments for major road projects for low to
moderate income people. Staff did not include this because the City had tried this
a long time ago and you run the risk of running out of funding to help all
assessment projects.
Member May asked if the LakeviIle Farmer's Market is run by the Downtown
Business Association. Staff stated it is a branch of the St. Paul Farmer's Market.
Farmington's is City run such as Eagan's. Member May stated it is a good spot,
but if this is a cost to the taxpayer, should there be one once a month on the north
side? City Administrator Herlofsky stated the best thing was it brought the
community together. Next year if all goes well, we might break even. Member
May stated part of it was to attract people downtown and there are businesses on
the other side of town as well. If we are using taxpayer dollars should we also try
to bring people together in other areas of the City? City Administrator Herlofsky
stated this is what he would like them to discuss in strategic planning. Based on
the comprehensive plan, the Farmer's Market is the number one priority. That is
why we need to clearly state our objectives and then specific tasks the EDA will
honor. Member May was asking if the Farmer's Market is something the City
should run, or if it is downtown should it be run by the Downtown Business
Association. Chair Fogarty agreed the goal is to get it to not cost anything. The
role of the EDA is to spur economic development and if people come to the
Farmer's Market and two years from now they put a business in Farmington, was
that a good investment in the community.
Member Wilson would like to know if the businesses were able to quantify their
net sales when the market was open versus last year. Knowing that number could
help them advertise in different ways to help remove our cost of advertising.
EDA Minutes (Regular)
(November 23,2009)
Page 9
Staff did do a survey and it was difficult to get the businesses to respond to a
survey. Staff felt the Farmer's Market was successful for the first year. Member
May suggesting asking about their net sales at a Downtown Business Association
meeting.
MOTION by Wilson, second by Larson to approve the CDBG funding. APIF,
MOTION CARRIED.
b) Strategic Planning
Economic Development Specialist Hansmeier distributed a list of activities
performed by Economic Development and Planning staff over the last few years
that fall within the top priorities of the EDA. City Administrator Herlofsky asked
if they want staff to obtain a consultant to assist the EDA in formulating a
strategic plan. He asked if there was anything in the Economic Development
portion of the Comprehensive Plan that the EDA would like changed. If so, they
need to talk about it.
Chair Fogarty stated she was here when this was created and this is what staff was
working from. There is new leadership and this EDA needs to have their own
vision. This was from a past Council. She wanted to incorporate new ideas and
have a solid voice. She did not feel they needed to bring someone in to run the
meeting. They sometimes want to follow their agenda, and she wanted the EDA
to follow their own agenda. She felt that she could meet with City Administrator
Herlofsky to come up with an agenda and handle the meeting themselves. City
Administrator Herlofsky stated the objective of the Comprehensive Plan was to
review it every couple years and see if we are still consistent. Chair Fogarty
suggested pulling the Economic Development portion from the Comprehensive
Plan and noting to see strategic plan.
Members agreed to hold a strategic planning session in January. It should be
placed on the agenda for next month to set a date in January.
9. CITY STAFF REPORTS
a) Economic Update, Volume 28
Dazzle Days will be held December 5, 2009 with a variety of events and specials
at stores. The tree lighting will be at 5:30 p.m.
b) Downtown Promotion Report, Nov 2009
The subscription is up for renewal this year. Information can also be obtained
from their website.
c) 2009 New Businesses
There are 15 new businesses this year. Chair Fogarty asked how many more
businesses are in Farmington in the last five years. Staff stated there are a handful
that are no longer here. City Administrator Herlofsky asked if the EDA wanted to
EDA Minutes (Regular)
(November 23,2009)
Page 10
know if it is a new business that is new to the community, a new business that
moved into a new spot, or a new business that moved into an old spot. Chair
Fogarty wanted a net number of increases in businesses; how many more
businesses do we have this year than last year. If we lost one and we gained one,
then we do not have more businesses. Expansions would also be nice to know.
d) Request to Dakota Electric for Partners in Progress Grant
Each year Dakota Electric contacts staff to determine a project for the grant. It
has funded the Business Outreach brochure, Economic Update, and the Farmer's
Market. This is the last year for the program. The City receives $5,000 from the
grant. Member Wilson felt the entire amount should go to the Farmer's Market
and partner with Dakota Electric for the event. Their logo was on the advertising
this year as half the money did go to the Farmer's Market. Next year, staff was
hoping to host a Business Appreciation Event to let the existing businesses know
how much we appreciate them and how important they are to Farmington. Chair
Fogarty felt staff should determine where the money would be most appealing.
e) Preview ofwww.metromsp.ore:, www.e:ofishcommercial.com, and
www.mnnro.com
Staff reviewed the information placed on these websites.
1) December Meeting Date
Historically the EDA has cancelled the December meeting due to the holidays. If
something needs approval, the meeting will be held.
Staff provided a list of commercial/industrial inquiries. Member May asked about
the status of contacting some realtors for all City owned property. Staffhas done
so and they have recommended not doing an RFP and just ask for a listing
proposal. A letter needs to be developed to send to all realtors in the area and ask
them for a listing proposal. Member May asked how staff will chose which
realtors to ask. She suggested picking one from each realty firm. City
Administrator Herlofsky stated ideally it would be a realtor who has an office in
Farmington. He explained that since early in the year, employees have not been
allowed to work over 40 hours a week. So when staff is here or goes to
Downtown Business meetings, she then has to cut 2-4 hours out of the week.
Some things are not getting done because the person does not have 40 hours per
week with meetings.
10. ADJOURN
MOTION by Wilson, second by Larson to adjourn. APIF, MOTION CARRIED.
Respectfully submitted,
~ -rvJ~
ynthia Muller
Executive Assistant
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City of Farmington
430 Third Street
Farmington,. Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
Tina Hansmeier, Economic Development Specialist
SUBJECT:
Economic Development Association of Minnesota's Winter Conference
DATE:
January 25, 2010
INTRODUCTION
Tina Hansmeier will be attending the Economic Development Association of Minnesota's 2010
Winter Conference on January 21 and 22, 2010 in Minnetonka, Minnesota.
DISCUSSION
This annual conference provides an opportunity for staff to keep up-to-date on a variety of issues in
the economic development arena. In addition to general sessions, the conference offers multiple
topic tracks with six break-out sessions to choose from in following categories: Innovation, Economic
Development Tools and Case Studies. The educational sessions include topics such as
nanotechnology's economic impacts, redevelopment, and the role of bioscience in Minnesota's
economy, wind energy and the practical and effective use of social media tools. The conference will
be held at the Minneapolis Marriott Southwest and attracts economic development professionals
from all over Minnesota.
BUDGET IMPACT
The cost for this conference is $220. This amount is provided for in the 2010 EDA budget.
ACTION REQUESTED
For information only.
-
Respectfully submitted,
~~ut5'm~
Tina Hansmeier
Economic Development Specialist
5~
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
Tina Hansmeier, Economic Development Specialist
SUBJECT:
Ehlers & Associates 2010 Public Finance Seminar
DATE:
January 25,2010
INTRODUCTION
Ehlers & Associates 2010 Public Finance Seminar will take place on February 4 - 5 at the Northland
Inn in Brooklyn Park.
DISCUSSION
This annual seminar provides training on a variety of financing and economic development topics
from a variety of professionals. The seminar includes sessions on property tax, TIF & tax abatement,
marketing your community, retail/office/industrial market updates and more. The seminar also
includes updates from the State Economist and League of MN Cities. This conference is intended for
state and local public officials and staff, developers, public and private attorneys and others who
want to develop a greater understanding of public finance. Ehlers acts as a financial consultant to
the City of Farmington for bond issuance and housing, economic development and redevelopment
projects.
BUDGET IMPACT
The cost of the two-day seminar is $245. This amount is provided for in the 2010 EDA budget.
ACTION REQUESTED
Approve Tina Hansmeier's attendance at the 2010 Ehlers Pubic Finance Seminar.
;t(;~?l~~
Tina Hansmeier
Economic Development Specialist
?G.-
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.cLfarmington.mn.us
TO: EDA Members
FROM: Tina Hansmeier, Economic Development Specialist
SUBJECT: Strategic Planning and Goal Setting Workshop Outline
DATE: January 25, 2010
INTRODUCTION
The EDA has set a Strategic Planning Workshop for March 22,2010.
DISCUSSION
For EDA's review prior to the workshop, attached are the following items:
- Economic Development Portion of2030 Comprehensive Plan
- 2009 Strategic Planning Packet (note page 12, #3)
At this EDA meeting and the February EDA meeting, staff would like input from the EDA
members as to what you would like to see on the agenda for the workshop.
ACTION REQUESTED
Provide agenda items for EDA Strategic Planning Workshop.
Tina Hansmeier
Economic Development Specialist
Farmington 2030 Comprehensive Plan- 2008 Update
CHAPTER 9
ECONONUCDEVELOPMENTELEMENT
For the past decade, the City of Farmington has been experiencing a period of substantial
residential growth. Growth in the residential sector has created a need for increased activity in
the commercial and industrial aspects of development in order to achieve a more balanced
community. Recognizing the value of developing strategies to create this balance, the City's
Economic Development Authority (EDA) has undergone a strategic planning and visioning
process.
Over the course of several months, the EDA, City staff and community members met to discuss
future economic growth and to identify the areas of emphasis that would most benefit the City as
a whole. The economic development priorities identified will become the basis for creation of
strategies and action plans to proactively work toward the overall goal of more balanced
commercial and industrial growth.
Three primary areas of focus were identified and prioritized; they are as follows:
I. Downtown Development and Redevelopment
2. Industrial Development
3. Commercial Development Outside of the Downtown Area
Several other areas were identified that will be pursued but not emphasized as priorities:
I. Redevelopment of blighted properties and a continued focus on improving
the aesthetics of aging properties.
2. Focus on the Vermillion River. The Vermillion River is recognized as an
underutilized asset of the community. New restrictions on building near the river
have created challenges that require the City to scale back expectations and resources
for economic development efforts. There are however, areas of continued interest in
economic development applications:
. Expand Third Street plan to Vermillion River
. Tie river theme into downtown streetscape plan
. Pedestrian and bike trails linked to picnic areas
. Encourage events that tie downtown to the river
3. Provide Linkage between the Second Street entrance into Dakota Village and
Downtown's Third Street Business District.
4. Tourism development.
149
Economic Development Element
Farmington 2030 Comprehensive Plan- 2008 Update
GOALS AND POLICIES
Policies
The following goals and strategies will be the top priorities with regard to concentration of time,
energy and resources. With priorities established, activities can be structured to support the
overall economic development vision of more balanced commercial and industrial growth.
Policv 1: Downtown Development and Redevelopment
The boundary of the downtown area has been discussed many times and remains a point of
confusion. A clear delineation of downtown is an essential first step in defining and planning the
next steps of development including promotion of infill development and the expansion of the
commercial core. It is the desire of the City to have standards in place to coincide with the
development and redevelopment of downtown.
Strategies to achieve the policy:
a) Establish a Clear Downtown Boundary
Action Steps:
I. Perform a SWOT analysis of existing and potential communication
links within the community.
Implementation
a. Staff will identify potential stakeholders and resources that may be
helpful in disseminating information and recruiting involvement in
the process of delineating a clear boundary for the downtown.
2. Design and Implement a Public Information Campaign
Implementation
a. Staff will develop promotional materials to be distributed to
members of the City Council and Commissions, the School
District, the Chambers of Commerce and residents.
b. A survey will be distributed to residents to obtain feedback.
c. Joint meetings will be held with the City Council and the Planning
Commission, Economic Development Authority and Historic
Preservation Commission.
d. Public meetings for residents will be organized to facilitate
discussion regarding the delineation of downtown.
e. The data obtained from the aforementioned meetings will be
reviewed and a boundary for downtown will be created.
f. A map showing the resulting boundary will be created and upon
EDA approval, will be disseminated to the community.
150
Economic Development Element
Farmington 2030 Comprehensive Plan- 2008 Update
b) Design Standards
Action steps:
1. Identification of the primary group to lead the creation of design standards
will need to take place.
Implementation
a. Staff will meet with the members of the Planning Commission and
Historic Preservation Commission to determine which group will
lead the process of creating design standards for the downtown.
b. Develop preliminary design standards.
The following elements will be addressed:
. Types of materials
. Bulk requirements
. Height
. Signs
. Streetscape
. Landscaping
. Green Space
. Lighting
. Image
. Complimentary architectural elements
. Walk-able and pedestrian oriented
c. Review preliminary design standards with the public and receive
input.
d. Develop final draft and adopt supporting ordinance.
e. Make design standards public and promote.
c) Promote Infill Development
Action Steps
1. Downtown Outreach Program
Implementation
The program would include business visits by City staff members or small
committee which might include: City Staff, a City Council Member, an
EDA Member and/or Administration. An important aspect of the program
will be follow-up on concerns or questions raised at business visits and
creation of a database to compile visit information and results.
2. Promotion of infill in the downtown area that includes business
activities that are complimentary to the unique atmosphere of the historic
downtown.
Implementation
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Through information compiled from the Market Study and the Downtown
Outreach Program, the types of businesses to be targeted will be identified
and may include the following:
. Professional offices
. Entertainment and arts
. Craft and antique
. Boutiques
. Specialty shops
3. Parks and Public Spaces
Implementation
Staff will work in conjunction with the Park and Recreation Advisory
Commission to identify opportunities for park and green space in the
downtown area.
4. Identify Incentives
Implementation
Possible incentive programs and options will be investigated and
developed based on input from the City Council and EDA. Staffwill
research available grant and loan funding.
5. Land Assembly Strategy
There will be ongoing attention to the possibility of land assembly.
Potential reasons to assemble land include but are not limited to:
. Prices that are unusually favorable
. The ability to capture opportunities that arise
· To accommodate the desired development patterns as outlined by
the Comprehensive Plan.
6. Develop and implement a communications plan.
Policy 2: Industrial DeveloDment
The goal of promoting industrial development is to encourage the expansion of the tax base and
job creation to enhance the well being ofthe community. The following steps will be undertaken
to promote development.
Strategies to achieve the policy:
a) Build, execute, and maintain a business retention program.
Action steps
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1. Visit each business on an ongoing basis dependent on their individual
needs. Partnerships with the City Council, EDA, Administration, DEED,
the Chambers of Commerce and Legislators may be utilized to benefit the
program. The following steps will be included in the program.
a. Identification of the questions and discussion topics for
the visits
b. Identify list of businesses
c. Data review
d. Follow-up
e. Ongoing visits
b) Promote the availability, use, and sale of industrial property
Action steps
1. Develop inventory and contact list
2. Identify desired businesses
3. Determine ifland assembly is appropriate
4. . Rezone property to comply with Comprehensive Plan
5. Develop promotional materials for desired business types
6. Create marketing packet for inquiries
c) Advocating with stakeholders
d) Enforcing building standards
e) Establishment of incubator buildings and/or inventory of vacant buildings for
start-ups
f) Extend Light-Industrial Areas of the City
Policy 3: Commercial Development Outside of Downtown Area
Support and promotion of commercial development throughout the City of Farmington will
continue to be a priority. The commercial development outside of the downtown area includes
neighborhood commercial nodes, and those along major thoroughfares. Those areas will be
supported by the following strategies.
Strategies to achieve the policy:
a) Promote the availability, use, and sale of commercial property and buildings.
Action steps
1. Zone commercial property to influence development patterns
2. Determine if incentives will be used to promote this type of development
3. Market to desired business types and brokers
4. Develop design standards (PUD)
5. Land assembly/Identify priority locations
6. Infrastructure
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b) Build, execute, and maintain a business retention program.
Action steps
1. Visit each business on an ongoing basis dependent upon their individual
needs. Partnerships with the City Council, EDA, Administration, DEED,
the Chambers of Commerce and Legislators may be utilized to benefit the
program. The following steps will be included in the program.
a. Identification of the questions and discussion topics for
the visits
b. Identify list of businesses
c. Data review
d. Follow-up
e. Ongoing visits
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I
Farmington 2030 Comprehensive Plan- 2008 Update
MARKET STUDY
To better determine the future demand for commercial and industrial space, the Economic
Development Authority and the Farmington City Council hired two consulting firms to conduct a
commercial and industrial market study in mid 2007. The two firms, Maus Group and McComb
Group, Ltd. worked together to conduct research and analysis of past trends and future growth
projections for development in the Farmington trade area. The results ofthe study were used in
the City of Farmington's Comprehensive Plan Update as well as to provide additional guidance
in the creation of work plans for the City's Economic Development Staff as identified in the
Economic Development Chapter ofthe 2030 Comprehensive Plan. The Summary of Findings
and Development Strategy that follow provide insights into development potential, space
absorption and strategies that serve as a guide for future development activities.
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SUMMARY OF FINDINGS AND DEVELOPMENT STRATEGY
(prepared by Maus Group / McComb Group Ltd.)
Farmington is updating its comprehensive plan to accommodate additional residential, retail and
business development. New development will capitalize on previous Farmington investments
including development and successful marketing of the Farmington Industrial Park and creation
of the Spruce Street Commercial Area. The decision to relocate City Hall in Downtown retains
an important destination in downtown.
Development Potential
Future development potential for retail, services and business park establishments through 2030
are summarized in Table L Acres of land needed for this development is also shown for each
type of development.
Category
Deman d
Retail
Retail Sto res
Serv ices
Medical
Other
Subtotal
341,000
299,000
lQO~OOO ...
100,000 .
849,909'
Business Park
Office Warehouse/lndustrial'
. Commercial Office
Office Showroom
Bulk Warehouse
Subtotal
Total
1,675,000 .
.40Q,OOQ ; .
180,000 .
590,000
2,845,000
3,685,000
Source: McComb Group, LId,
Square Feet
Contingenc~
Total
Land
(A cres)
500,000
50,000
50,000..
841,000 ; 84
349,000 35
150,000 15
100,000 . 10
. t,4"W,OQQ. ... ,J 144
.600,000. ...
420:000'1
. I.oo,goo
45,000 .
150,000 .
715,000
1,315,000
;i
,
,
t 175
50
19
62
306
2,095,000
.. ~O.Q,OQ.() .j.
225,000
740,000
3,560,000
5,000,000
450
Farmington currently has about 640,000 square feet of retail stores, services and medical offices.
Retail stores total about 223,000 square feet and services total about 240,000 square feet.
Medical offices currently occupy about 64,000 square feet. There's an additional 133,500 square
feet of space that could not be identified as clearly retail stores or services and is identified as
other.
Additional retail space demand by 2030 is estimated at 840,000 square feet. A contingency of
600,000 square feet is provided to accommodate unforeseen retail development. This
contingency has been allocated to each retail category. The contingency is provided to ensure
that Farmington will have retail space in the period beyond 2030. Most of this contingency,
500,000 square feet, has been allocated to retail since this is the category which accounts for the
big box stores (Le. SuperTarget, Wal-Mart Superstore, Home Depot, Menards, etc.). Land area
estimated to accommodate this retail development is estimated at 144 acres excluding water
retention and streets. Existing business park type buildings total over 1.1 million square feet.
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Office warehouse/industrial is the largest category with 809,500 square feet and bulk warehouse
totals 195,600 square feet. The Farmington Industrial Park is responsible for much of the
industrial development in Farmington.
Business park space demand is estimated at over 2.8 million square feet with office
warehouse/industrial accounting for about 60 percent of the estimated demand. Commercial
office is estimated at 400,000 square feet and bulk warehouse accounts for 590,000 square feet.
Office showroom is a relatively small category estimated at 180,000 square feet. A contingency
of25 percent (715,000 square feet) has been provided for two reasons: 1) Farmington's growth
will not end in 2030; and 2) the contingency space will provide for the possibility that demand
for business park space exceeds the baseline estimates. Land necessary to support business park
demand is estimated at 306 acres excluding water retention and streets.
Space Absorption
Estimated demand for retail and business park space increases steadily over the 23-year analysis
period with the largest increase in the 2025 to 2030 period, as shown in Table ii. This is due to
the growing metropolitan economy, Farmington's growth, and reduced supply of competitive
sites in other communities.
Table ii
ESTIMA TED INCREASED RETIAL, SERVICE AND BUSINESS PARK SPACE
i\~1) l,Al'ID;2010T()203()
(In Thousands of Square Feet)
y...___mm__._..._.._."....._.....}_"___................... .n............._...................__T.__.
Category
2010
Retail
Retail Stores
Serv ices
Medical
Other
Subtotal
Contingency
Total
15
14
6
6
41
31
72
Business Park
Office Warehouse/Industrial 138
Office 20
Office Showroom 4
Bulk Warehouse 30
Subtotal 192
Contingency 48
Total 240
Land (ac res)
Retail
Bus iness Park
Total
8
21
29
Source: McComb Group, Ltd,
..I-
Cumulative Increase
2015 2020 2025
82 202
61 113
19 38
19 38
181 391
115 229
296 620
367
76
27
96
566
142
708
30
63
93
262
192
65
65
584
386
970
2030
341
299
100
100
840
600
1,440
144
306
450
198
295
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Estimated demand for retail, service and medical offices accelerates to an additional 840,000
square feet by 2030. The largest increase in space occurs in the later years of the analysis period.
The estimated increase between 2010 and 2015 is 140,000 square feet, which increases to
210,000 square feet in 2020. The estimated increase in demand is 193,000 square feet in 2025
with a further increase of 256,000 square feet by 2030. For purposes of preparing absorption
estimates, the contingency was allocated to each five-year period beginning with 31,000 square
feet in 2010.
Land needed to support the above retail demand is contained at the bottom of Table ii. One acre
of land will support about 10,000 square feet of gross leasable area, excluding land for water
retention. This indicates demand for about 84 acres. Adding 60 acres for the 600,000 square
foot contingency brings total additional land area to 144 acres by 2030.
Estimated business park demand by five-year period is contained in the lower portion of Table ii
by building type. These are baseline forecasts and do not take into consideration the current
economic environment that may restrain development of business park properties. The total
additional business park space by 2010 is estimated at 240,000 square feet. For 2015, the
estimated demand increases to 708,000 square feet, an increase of 468,000 square feet for the
five-year period from 2010 to 2015. Baseline demand in 2020 is estimated at 1,370,000 square
feet, an increase of 662,000 square feet from 2015. This table demonstrates that space demand
increases with the largest space demand is estimated for the period 2020 to 2025 (931,000 square
feet) and 2025 to 2030 (1,255,000 square feet).
Retail Development Strateev
Growing population and households in Farmington's trade area will provide support for a
growing number of retailers over the next 23 years. Retail potential is focused primarily in
convenience goods, food service, services and medical, or those business establishments that are
generally patronized by customers that live near the business establishment. Demand for
shopping goods, which include apparel and accessories, electronics, home furnishings, and other
specialty stores, have more limited potential because the Farmington trade area does not have
enough households to support most of these types of businesses.
Significant retail development occurs around anchor stores that attract customer traffic.
Examples of anchor stores include supermarkets, drug stores, discount stores, superstores,
department stores, and home centers. Retailers and services attracted by anchor stores differ by
type of store. Supermarkets and drug stores attract convenience retailers, liquor, florists, fast
food and personal services. Discount stores and superstores attract many of the same
convenience stores and services and a limited number of shopping goods stores. Department
stores attract shopping goods retailers, fast food, and restaurants. Home centers and other
destination stores, such as furniture, appeal to a smaller group of retail stores as a draw. New
anchor stores, because of their size (55,000 to 200,000 square feet), will be most likely to locate
in the Spruce Street Commercial Area. How and when this occurs will affect downtown
business establishments.
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Supportable square footage analysis indicates that Farmington will be able to support an
additional supermarket. The timing of this new supermarket is important to Downtown
Farmington. Farmington's trade area should be able to support two supermarkets sometime
around 2015. This supermarket is likely to locate in the Spruce Street Commercial Area. If a
new supermarket is constructed before the trade area can support two stores, it's possible that
Econofoods could be forced out of business in a scenario similar to that which occurred in
Rosemount when Knowlan's opened causing the downtown supermarket to close. Subsequently,
Cub opened a store and Knowlan's closed. Customer traffic to other stores in Downtown
Farmington would suffer if Econofoods were to close.
Analysis in this report demonstrates support for a discount superstore in about 2015 to 2020. A
superstore would reduce market share and sales for any supermarkets operating in Farmington.
Due to its smaller size, Econofoods could be most vulnerable.
Notwithstanding the timing for supermarket or superstore development contained in this report,
major anchor stores are concerned about market share and the development activities of their
competitors. This can cause a retailer to build a store before a market can fully support the store
to prevent a competitor from locating in the market. As a result, an anchor store could choose to
locate in Farmington to prevent a competitor from opening a store in the area. The timing of
these types of development decisions is unpredictable, but do have ramifications for Farmington.
Farmington's comprehensive plan emphasizes maintaining Downtown as a major retail area and
also provides for retail expansion into the Spruce Street Commercial Area. Current drafts of the
2030 comprehensive plan identify new retail areas north ofTH-3 at 195th Street, and on Flagstaff
south of 195th Street. These should be convenience shopping areas. A convenience shopping
area could also be planned at CSAH 50 and Flagstaff. These convenience shopping areas should
be five to ten acres in size and designed to accommodate the types of uses found at Marketplace
and Charleswood.
Downtown Farmington is the area's dominate retail location due to its historic base of retail
stores and services. It is important to improve Downtown's attractiveness to retailer stores and
services.
Retail potential in Downtown Farmington can be strengthened by locating new businesses that
serve as major customer draws in the downtown area. This is similar to the city's decision to
build its new City Hall in Downtown.
To encourage retail development in Downtown Farmington, the city could consider establishing
a retail incubator to attract new retail stores to Farmington at affordable occupancy costs. The
key to maintaining the vitality of Downtown Farmington is to have a growing number and
diverse mix of attractive retail stores, restaurants and services that can meet the needs of trade
area residents and visitors.
Building owners and retailers in Farmington's older retail areas (Downtown and Highway 3)
should be encouraged to update and modernize their space to present a more contemporary
appearance. This includes updating storefronts and interior finishes and fixtures. Downtown
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retailers should seek to be comparable to their competitors on Pilot Knob and in Apple Valley,
Lakeville and Rosemount. Most national and regional retail chains have refurbishment
schedules of seven to ten years.
Over the next 25 years, some of Farmington's existing retail buildings are likely to be
redeveloped to accommodate expansion of existing retailers or new retailers choosing to locate
in these areas. The City of Farmington should encourage these redevelopment activities and
should establish programs to enable redevelopment to be economically feasible.
Business Park Develooment Strate2V
Since 1990, about 450,000 square feet of business park space has been developed in Farmington.
Industrial Park tenants indicated they located in Farmington due to the availability of affordable
land and friendly business climate. Farmington should capitalize on this "good will" in its
business development activities. This will help to mitigate development industry misconceptions
of Farmington identified in broker interviews. A strategy that will help Farmington achieve a
balanced growth would include the following:
. Land use policy that promotes a balanced growth that includes a mix of office and
industrial users to help support Farmington's tax base and minimize the real estate tax on
homeowners.
. Target industries that are not heavily dependent on transportation. Because Farmington
is not on a primary transportation corridor like 1-35, industries that depend on a road
network to receive and ship large quantities of raw materials and finished goods will find
Farmington less accessible than other locations.
. Building values tend to reflect the wages and talent of the people working inside. It is
important to create jobs that enable employees to live within the community. These
employees are likely to have higher disposable income to support local businesses. This
will reduce traffic congestion created by commuters that leave the community to find
employment.
. Development covenants for the industrial park will be important to ensuring that higher
value real estate is developed. However, some communities create covenants that are
overly restrictive and complex, which will often discourage industry from locating in
their area. Covenants that are extensive and detailed are not necessary and can suggest an
unfriendly local business climate.
. Focus on the creation of wealth rather than the number of jobs created. High value
investment will create jobs for highly paid skilled workers to operate the facility. High
value investment tends to create a sense of permanence. Light assembly and warehouse
tenants and owners are fairly mobile. The spaces they occupy are flexible and
commodity real estate that is easily adaptable for new users. High value investment often
includes expensive equipment that is very difficult and costly to move and often requires
customized buildings.
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. The area to the west of the Industrial Park should be guided business park and sized to
accommodate projected demand in this report.
. It is very important to control the cost of land to promote business park development. In
order to minimize up front acquisition and infrastructure cost, the EDA should investigate
several scenarios to control land and cost. These include:
. This could be as simple as acquiring a renewable option on the proposed business
park property. Option money is not subjected to ordinary income tax until the
option is exercised. Therefore, a land owner could continue to farm the land and
collect option money not immediately subject to income tax.
. The EDA could enter into a purchase agreement with a land owner that includes a
"take down" provision that would allow the EDA to exercise a purchase at a
predetermined price when a buyer is found or to take down land on a scheduled
basis over an extended number of years.
. The EDA could enter into an option agreement for a nearby farm at a lower price
and facilitate a 1031 tax free exchange with another land owner near to the
business park allowing the owner to avoid paying a capital gain tax.
. It is important to develop a business park layout that is flexible. Utilities should not be
extended beyond the entrance. To do so would commit the city to a final design and
preclude flexible lot configuration and size for potential users. A preliminary plat can be
developed and finalized as each lot is sold.
. The EDA should consider developing a business incubator building. This could be a
multi-tenant building with added improvements that would allow emerging companies
with new technologies to become established and hopefully later grow into the business
park. It may be necessary to provide TIF, deferred assessments or other incentives to
encourage a private developer to create a building with these added amenities.
. The EDA should create a targeted marketing program focusing on specific industries and
businesses south of the river. This would include direct mail and personal contact by
EDA staff.
Farmington's development strategy should focus on local and regional businesses that are likely
to have more flexible location criteria than national firms. Farmington's favorable business
climate is a significant advantage. Farmington has the ability to build on the success of the
existing Industrial Park.
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STRATEGIC PLANNING & GOAL SETTING
SUMMARY REPORT
August 7, 2009
Presented By:
Lynn & Associates
www.lynn-and-associates.com
I
I INTRODUCTION
Background: The Council and City Manager met in July and August, 2009 to develop a draft
Strategic Profile - a tool that will assist the Council and Staff in setting and implementing the
strategic direction for the City of Farmington.
The meeting notes from both sessions are included in this Report.
This Strategic Profile contains a Vision Statement, Values, a Mission Statement and 6 Strategic
Goals or Priorities for the City of Farmington to focus on for the next several years.
This Plan will assist the Council and City staff in working together as a high performing team,
focusing on key areas and aligning resources to work more effectively and efficiently.
@2009, Lynn & Associates
1
I
I A VISION 51 A TEMENT - WHERE ARE WE GOING
In order for leaders to work together effectively and efficiently, there needs to be a clear
direction determined. A vision statement is a picture of the City of Farmington. It is often an
inspiration, the framework for all strategic planning efforts. The vision statement answers the
questions, "Where do we want to go? or "What do we want people to picture when they think of
the City of Farmington?"
The Council wanted the Vision Statement to pull people together from the entire community.
The Vision needs to encompass both attitude and environment.
The previous Vision Statement: A proud past, a promising future.
The Council drafted several concepts and Vision Statements which are listed below.
Home and family.
No asphalt valley.
Out of the rat race.
Your destination.
A growing City with a small town feel.
Your home with a small town feel.
Our trails lead you home.
The last best small town in the metro area.
Welcome home.
@2009, Lynn & Associates
2
I
I VALUES - HOW WE TREAT EACH OTHER
The Council discussed core values from the perspective of City, City Staff and the Council.
Then, the Council voted as to which were key from all areas and the following list of eight values
emerged.
. Family
. Excellence
. Effectiveness
. Accountability
. Friendliness
. Organization
. Education
. Safety
These values should link with both the Vision Statement and the Mission Statement. These
values should represent how City employees and Council treat each other and also how the
staff and Council treat citizens, business owners, visitors, and key stakeholders of the City.
@2009, Lynn & Associates
3
I
I MISSION STATEMENT - WHAT OUR PURPOSE IS
A mission statement is a brief description of a City's fundamental purpose. A mission statement
answers the question, 'Why do we exist?" The mission statement articulates the City's purpose
both city staff and for the public. Many experts agree that successful organizations, both pubic
and private, have a mission statement as a way of ensuring that everyone in the organization is
"on the same page" and to serve as a baseline for effective strategic planning.
As the Council has stated they want to move towards the future, the City of Farmington Mission
Statement adopted July 15, 2002 may need to be revised. The 2002 Mission Statement is listed
below.
Through teamwork and cooperation, the City of Farmington provides quality services
o that preserve our proud past and foster a promising future.
The Council discussed ideas and drafted the following Mission Statement.
. The City of Farmington is dedicated to provide quality services for those we serve.
. The City of Farmington is dedicated to provide quality services through
(teamwork) for those (community) we serve.
@2009, Lynn & Associates
4
SWOT ANALYSIS: INTERNAL STRENGTHS AND WEAKNESSES
The following notes were captured on the flipchart as the Council discussed prompts within the SWOT
Analysis (see Appendix A).
Perceived Strenaths
~ The culture and feel of the City is a definite strength.
~ Our location - we are on the edge. One can experience many
environments within minutes (peace and quiet, farming, shopping,
biking trails, etc.)
~ Our vision is clear - we know where we are going - it just getting
there that is the tough part.
The City of Farmington
has many current strengths
that other cities
are trying to build or create.
~ Our infrastructure is definitely a strength. We are zoned well, a
bridge is going in that will benefit many, and we have lots
available for when the financial difficulties turn around.
~ Our website is a strength although it could use some revisions to
make it even better such as a better search engine.
Our City is safe.
~ Our citizens are satisfied - by the comments we receive and from
the survey data.
~ Our environment - we don't have to lock our doors. Kids can run
around and play.
~ Our City has the chance to grow and expand its' boundaries. We
could get up to twice our current size.
We have the opportunity to grow
in the future.
~ We have a downtown which many cities would love to have and
are trying to develop. Our market study stated that our downtown
was a great asset.
~ The downtown area is part of our character and should be saved.
Our downtown is an asset.
~ We hold our farmers market in the downtown area to get people to
come here.
~ Fairhill has development potential.
~ We have 45% expenditures. We are doing well financially.
We have development potential.
~ Our staff manages the budgets well.
~ We have a stronger residential tax base and don't rely on as much
commercial or industrial.
@2009, Lynn & Associates
5
Continued Strengths
}> We are almost done with TIFF.
}> We have excellent roads.
}> We have good utilities.
}> We have excellent new facilities.
}> We have great garbage service in the City of Farmington.
}> We have good communication networks set in place. People can
get the answers they need quickly.
}> The Council and staff are open to answering questions.
}> The Council and staff are approachable.
}> We have excellent technology staff in the City.
}> We are close to having a paperless office.
}> We have been effective at replacing technological equipment
when needed.
}> Our new buildings have allowed us to be more effective and
efficient in how we work.
}> Our employees can get the training they need to stay current in
their skills.
}> Our staff is cross-trained.
}> We have a good Council orientation.
}> We have internal training and offer external in-state training.
}> People enjoy working together at Farmington.
}> We have a new High School, a new City Hall, a new Senior
Center and a new bridge that goes somewhere!
}> We have low water fees as compared to other cities
@2009, Lynn & Associates
We have a good
infrastructure in place!
We communicate!
We are close to having a
paperless office.
Our City uses technology
effectively.
Our staff and Council are well
trained.
We have a lot of good things
going for us!
6
Perceived Weaknesses
~ Taxes are high.
~ We don't have a lot of commercial or industrial development to
offset residential taxes.
~ Is our vision clear? There is some disagreement as to our
future. Should we grow and bring in "the big box" or should
we stay as we are?
~ Our downtown is loosing strength. Businesses are leaving.
But it's not the City's fault, but rather it's the economy.
~ Our location could be perceived as a weakness. Can we
attract businesses? We are not next to a highway.
~ What areas should we focus on for business development?
~ Do we have affordable housing for all? We are lacking
affordable apartments. People have to leave the community to
find an affordable home if they want to live in an apartment
type structure.
~ As far as downtown, business owners need to take
responsibility for their own success and not depend too much
on City Hall to bail them out. We, as a City, need to pay
attention to all our businesses and treat each equally.
~ We rely too heavily on a residential tax base.
~ It would take 15 - 20 years to benefit from a commercial
property.
~ Why should we put resources into infrastructure when
commercial properties may not result?
~ Our bonding and debt is growing.
~ The manner in which we finance roads, etc. It is effective?
We are not consistent. It takes a lot of time and resources to
assess each project.
~ Business development is not transparent or efficient.
~ Economic development I weak. We need to get a star player
to build this for Farmington. Currently, we have an entry level
staff person - we need to pay for and bring in an experienced
star!
@2009, Lynn & Associates
The economy is effecting the
City of Farmington.
We need to focus our resources
on all businesses equally
throughout the City.
Do we have a diversified
enough tax base?
7
Continued Weaknesses
)> Statutory requirements in some processes are definitely
weaknesses.
)> Engineering can be a weakness at times. We seem to redo
many projects. Why can't segmented construction be more
effective? There has to be a better way to do it.
)> The Council uses too much paper each week. We are not
being "green".
)> The City does not have a lot of staff with free time on their
hands
@2009, Lynn & Associates
We need to take the initiative
enhance key processes to work
more efficiently.
8
SWOT ANALYSIS: EXTERNAL OPPORTUNITIES AND THREATS
Perceived Opportunities
)> We could bring in more industrial and commercial companies.
)> We can work with industrial builders more - network with them to
form relationships and enhance our chances of bring in more
industry to our City.
)> We can assist developers more - partner with them.
)> 195th and Pilot Knob will help.
We need to partner with others
to enhance our strength.
)> How we talk about construction projects - can the Council use a
"better tone" when describing these projects? We set the
example for others to follow.
)> Perhaps we can challenge mandates from Dakota County when
needed. We may have more power than we think.
)> Can we be more green and lessen the amount of paper and
resources the council uses each week? Can the Council utilize
laptops to replace the amount of paper we use.
We have open land we can
develop!
)> We can work with other cities - partner with them to get a better
price on resources we all need
_ seal coating, ambulance service, supplies, regional police, etc.
)> What could we do with the schools? How can we repair any
relationships that need help so we can work together for our kids?
Can we be more green?
)> Can we visit more with current businesses - to see if we can
partner with them - to bring their suppliers to Farmington?
)> We have a lot of land we can develop - more than other
communities.
)> As far as technology - our opportunities lie in the fiber network.
What about looking at
developing a
technology park?
)> Can we develop a technology park?
)> We have no LGA.
)> Should we look at a liquor store at Highway 3 and 195th?
)> Park and Recreation - we have partially prepared fields at
Highway 3 and Empire.
)> Community Ed
@2009, Lynn & Associates
9
Perceived Threats
~ State Financial Deficit.
~ National Economy.
~ Legislature.
~ Some residents are stuck here - their homes are not worth what
they owe. A lot of our growth was at the height of the market - so
homes were going for $500K and now they are not worth that.
~ What is the impact of foreclosures in our City?
~ The interstate is far away.
~ We used to be more affordable.
~ Transportation.
~ The location of Lakeville, Apple Valley and Rosemount Liquor
stores.
~ Park and Recreation parks.
~ Passing a referendum in today's economic environment.
@2009, Lynn & Associates
The State's Financial Deficit will
impact us negatively for years.
'"'-
10
The City of Farmington's Strategic Profile
OUf Vision:
Welcome Home!
Our Mission:
The City of Farmington is committed to providing quality services to residents, business owners
and visitors to our City. We will facilitate this by ensuring we have a safe and prosperous
community, one that we are proud to call home.
Our City Values:
~ Fostering A Family Friendly Community
~ Providing Excellence In Programs And Services
~ Demonstrating Integrity In Our Words And Actions
~ Working Collaboratively And With Respect
Our Strategic Priorities
1. Promoting open and honest communication.
2. Providing exceptional services and programs.
3. Encouraging economic development.
4. Expanding our community.
5. Making fiscal decisions with collaboration and a shared responsibility.
6. Maintaining a safe community.
@2009, Lynn & Associates
11
Strategic Priorities: Detailed Draft Obiectives and Success Indicators
1. Promoting open and honest communication.
Potential Objectives:
- Use of television.
- Use of emaillinternetltwitter/etc.
- Use of in-person discussions.
Use of presentations to Council.
Potential Success Indicators:
Maintain and/or enhance communication between:
. Council
. Staff and Council
. Staff/Council and residents/business owners
. Council and the Fire Department
2. Providing exceptional services and programs.
Potential Objectives:
- Maintaining what we have.
Recreation Programs/Services
Promotion/Education Opportunities
Potential Success Indicators:
. Inviting more groups to come and present success stories to Council - promotion.
3. Encouraging economic development.
Potential Objectives:
- Maintain and/or expand recreational opportunities.
Focus on growing business development
_ Provide a collaborative, respectful environment so developers, etc., want to work with us.
- Invite successes to Council and celebrate successes.
Explore fiber as a competitive advantage
Potential Success Indicators:
. # of new businesses
. Marketing piece in place
. Messaging successes
. Increased jobs
. Increased revenue
@2009, Lynn & Associates
12
4. Expanding our community.
Potential Objectives:
Eureka Township
- Empire Township
- Lakeville
_ Property around the High School
Potential Success Indicators:
. Are we going to work with Lakeville?
. This area could be a big draw for development in the future.
5. Maintaining a safe community.
Education with Residents and business owners
- Communication
Potential Success Indicators:
. Level/decreased crime rate
. Manage ambulance service
6. Making fiscal decisions with collaboration and a shared responsibility.
Potential Success Indicators:
. Fund Balance Increased
. Maintain Levels of Service
@2009, Lynn & Associates
13
7!6
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO:
EDA Members
FROM:
Tina Hansmeier, Economic Development Specialist
SUBJECT:
Economic Update Distribution
DATE:
January 25, 201 0
INTRODUCTION
Staff understands from earlier discussions with the EDA that there is interest in expanding the current
distribution of the Economic Update to reach a larger audience. The main avenues for distribution at this
time include mailing to Farmington businesses (that have a storefront) and emailing to about 30 individuals
interested in receiving the information.
DISCUSSION
Staff is looking for clarification and direction regarding how the Board would like staff to proceed with this
activity. It appears from the last discussion that took place that several of the Board members were interested
in placing a half page ad in the Thisweek newspaper because it would reach over 24,000 households within
the Farmington and Lakeville area.
The table below illustrates the difference in price from the current distribution method to placing an ad in the
Farmington Independent or Thisweek news.
Publication Circulation # Monthly Cost Yearly Cost Approx Cost per
Household
Economic Update 215 + emaillist $124.70 $1,496.40 $0.58
Fgtn Independent 1,900 $395.00 $4,740.00 $0.21
Thisweek News 24,641 $963.50 $11,562.00 $0.04
BUDGET IMPACT
Funding to cover this activity was budgeted for in the 2010 EDA budget up to $13,500.
ACTION REQUESTED
Recommend that the EDA agree to one of the options provided.
Respectfully submitted,
~~.~
Tina Hansmeier
Economic Development Specialist
<6c.,
City of Farmington
430 Third Street
Farmington, Minnesota
651.280.6800 . Fax 651.280.6899
www.ci.farmington.mn.us
TO:. EDA Members
FROM: Tina Hansmeier, Economic Development Specialist
SUBJECT: EDA Property Update: 305 3rd Street
DATE: January 25, 2010
INTRODUCTION/ DISCUSSION
The EDA owned property located at 305 3rd Street (former liquor store building) has had
some issues recently with a roof/ceiling leak. Staff contacted a contractor to assess what
may be causing this problem to occur. The contractor has indicated that the main issue
is the flat roof and the snow and ice build up that had thawed during the warmer days in
December.
The City's Building Official and contractor will be meeting in the next few weeks to
determine what would be required to fix this issue long term.
There has been no damage to the tenant's equipment and minor damage to some of the
ceiling tiles that will need to be replaced.
ACTION REQUESTED
For you information.
Tina Hansmeier
Economic Development Specialist
~d
V~~ GRUBB & ELLIS.
w [_~.. Northm Real Estate Servlce5
Date: December 31, 2009
To: Peter Herlofsky
Tina Hansmeier
From: Bruce A. Maus, Senior Vice President Corporate Service Group
Chris Kubesh, Senior Associate & Director of Research
Subject: Farmington Industrial Real Estate Market Analysis
Peter & Tina:
As requested at the November EDA meeting, we have provided a brief overview of the industrial
market south of the river and within a 15 mile radius of Farmington. The purpose of this
information is to give you a snap shot of the industrial real estate market and how it may impact
the future growth of Farmington.
The attached documents are described as follows:
. Farmington Industrial Market Summary: Table 1 - All industrial properties within the 15
mile radius of Farmington. This table includes total space broken down by available and
vacant space as well as the vacancy rate. "Available" space includes vacant and some
occupied space. Occupied space could be a tenant month to month or a lease about to expire.
Table 2 - Detail for all multi-tenant industrial buildings only.
Table 3 - Detail for all single tenant or user industrial buildings only.
Table 4 - All industrial properties within a 10 mile radius of Farmington.
Table 5 - Detail for all multi-tenant industrial buildings only.
Table 6 - Detail for all single tenant or user industrial buildings only.
Table 7 - All available properties sorted by city within 15 mile radius.
· Farmington Available Properties: A one page description of each building listed as available
for sale or lease on MNCAR (commercial MLS). Note that some buildings may appear more
than once because it can be listed separately for sale and for lease.
. 2009 Grubb & Ellis I Northco Third Quarter Industrial Market Update
· 2010 Grubb & Ellis I Northco Industrial Market Forecast
Grubb & Ellis I Northco Real Estate Services
5353 Wayzata Blvd, Suite 650 St. Louis Park, Minnesota 55416 952.820.1600 - 952.820.1620 fax
Independently Owned and Operated
In summary, the above information and reports indicate there is a significant amount of industrial
space available in the market. It is important to note that 80 percent of the available space is
located within the outermost five mile ring of the fifteen mile radius market. Companies
considering space more than ten miles from Farmington are not likely to consider Farmington in
their search. However, given current market conditions, it is important to be aware of the
significant amount of available space in the market.
During 2009 there was negative absorption, meaning vacancy increased. As described in the
2009 Third Quarter Update, negative absorption has slowed and we believe as noted in the 2010
forecast that this trend will reverse itself and there will be positive absorption of industrial space
in the market. However, after two years of negative absorption resulting in increased vacancy
and net effective rental rates remaining the same or decreasing due to fmancial incentives offered
by landlords, it will take time to absorb available space before we will see an increase in lease
rates to justify the cost of new construction.
Finally, when reviewing the attached data, it is important to recognize that the majority of
Farmington's industrial growth will not come from the development of multi-tenant buildings.
Multi-tenant flex buildings are more often located near major transportation corridors with
higher visibility. Given Farmington's location in relation to the larger market and major
highways, industrial growth will come primarily from single tenant or owner occupied buildings.
Therefore, the available space in single user buildings within a ten mile radius of Farmington
will have the most impact on Farmington's future industrial growth.
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#
Vacancy Rate
Quarterly
8%
6%
4%
3Q 07 1 Q 08 3Q 08 1 Q 09 3Q 09
II Vacancy
Absorption
Quarterly (in Thousands of SF)
1,500
500
-500
-1,500
3Q 07 1 Q 08 3Q 08 1 Q 09 3Q 09
II Absorption
Asking Rental Rates
Quarterly ($/SFlYr.rrrlple Net)
$8
$6
$4
3Q07
1Q08
3Q08
1Q09
. Generallndustrlal Eill R&D/Flex 0 Warehouse/Dist.
[v/i}1 GRUBB & ELLIS.
~ c=J~ Northco Real Estate Services
Positive Spin on Negative Trends
The Twin Cities Industrial market extended its reign in negative territory during 3rd quar-
ter 2009. However, there are some notable improvements... so to speak. Net absorption
or more correctly "negative net absorption" (NNA) actually declined significantlyfrom
2nd quarter 2009.
The cumulative yea r to date N NA stands at a staggering negative 3,240,121 square feet,
3rd quarter's performance was significantly less negative than previous quarters with
negative 591,859 square feet of the year to date. The two largest submarkets in the twin
cities, the northwest and southwest totaling 170,293,112 square feet, not surprisingly
had the highest NNA numbers at negative 548,876 during 3rd quarter.
The overall vacancy rate across all product types increased by 20 basis points to 6.4
percent. Sublease offerings increased by 100,000 square feet to 1,551,777 square feet.
Forecasting sublease space in the current climate is easyl There will be morel Exactly how
much more is difficult to quantify. New potential sublease inventory, also called "Shadow
Space", is space that is currently unused by the tenant just not marketed as a sublease.
The market will be subject to the whims of the local economy and hiring practices to
determine the amount of sublease space that will hit the markets in future quarters.
Net rental rates overall are slipping slightly in some categories and in some submarkets.
The weighted net average rental rates however actually increased marginally to $5.81 per
square foot.
While a plethora of available space exists for tenants in this market, transaction volume
remains low. Lease transactions that are occurring generally speaking are smaller and
less tenant improvement intensive. Landlords who were asking themselves the "to
renew or not to renew" question are genera lIy favoring the former. Finding replacement
tenants is a difficult play at best. Financing the transaction costs, tenant improvements,
concessions, etc. in this capital scarce environment is another game unto its self land-
lords shy of ca pital and reI ucta ntto discou nt quoted net rates for fea r of lenders reprisals
have resorted to free rent to meet aggressive demands of to day's tenants.
FORECAST
. Rates to remain steady to marginally lower in some categories.
3Q 09 · NNA to continue to haunt the remaing quarter with inprovements in some
submarkets.
. Even as unemployment numbers appear to improve sublease space will continue to
hit the market with uncertain negative effects on inventory.
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Grubb & Ellis I Nortcho
5353 Wayzata Blvd, Suite 650
Minneapolis. MN 55416 . www.northco.com
Independently owned and operated
Prepared by:
Chris Kubesh Director of Research I Associate
952.820.1668' ckubesh@northco.com
Matt Semke Director of Marketing
952.820.1681 . msemke@northco.com
..
Industrial Snapshot-Third Quarter 2009
Minneapolis, MN
By Submarket
I ~~"n~ponS,i!t~~, ,,"t,
Northeast
Total SF
'llj~; 44,056,791
31,198,775
'",96,791,284
47,319,333
73,501,828
41,930,540
334,798,551
Southeast
SouthWest
Sl Paul Midway
Totals
By Property Type
GenerallnQUl.trial @;J
Incubator
IR&D/Flex, ;r
WarehouselDlstrlbutlon
Total
Vacant SF Vacancy %
2,021,363:: 4.6%
1,675,618 5.4%
6,238,052
v
3,150,802 6.7%
21,663,019 6.4%
~
Totals
334,798,551
21,663,019
6.4%
NET ABSORPnON ASKING RENT
Under
Current Year To Date Conetructlon SF WHlDlst R&DlFlex
(6,614) (~17,035) 12,000 $4.09 ~
3,887 (174,695) 136,776 $5.95
373,760 $6.86
(821) (344,322) 218,833 $5.08
(67,766) (682,246) 49,105 $5.28
(39,375) (384,861) $5.50
(691,869) (3,240,121) 790,474 $6.64
(356,332) (1,210,651)
344 14,740
(204,733):[ (838,523)
(31,138) (1,205.687)
(691,869) (3,240,121)
INDUSTRIAL TERMS AND DEFINITIONS
Office Submarkets
NW Northwest
NE Northeast
MPLS Minneapolis
STP St. Paul
SW Southwest
SE Southeast
~/~ GRUBB & ELLIS.
~ c:::=J ~ Northco Real Estate Services
ASKING RENT
506,001
$5.68
$6.45
$6.77
$5.54
$6.81
,
" 231,923 l~
52,550
790,474
Grubb & Ellis-Minneapolis
Real Estate Advisors
Barry Blmberg
Vice President
952-820-1673
bbirnberg@northco.com
Bruce Maus
Senior Vice President
952-820-1619
bmaus@northco.com
Scott Kummel
Vice President
952-820-1642
skummel@northco.com
Inventmy: Industrial inven1DJylncludesaD multi-tenantsingle
tenantand OMle/'oa:upied buildIngs at 1east20.ooosquare
feet
Indusl:rIaIBuildlngsClassllltdtiOIlS:lndustrial buikfmgsare
categorized aswarehouse/d"i5I:ribution,general industria~
R&D/fIexand incubator based ontheIr~lcharaderlstlcs
indudingpercentoffke build-ool;dearheight 1wka1 bay
depth. typicalsuItesize. typeafloadlngandtypical uses.
VaamtyandAvallablllly: Thevacarq rate Isthe amountaf
~lo/vacantspaced"1Vided l;ythe inven1DJyand includes
directand subleasevacant The availabirIlyrate Isthe amountaf
space availabfeforleased"1Vided l;ythe inven1DJy.
NetAbsorpllon: Thenetchange in ~Io/oa:upiedspace
overa periodaftime.
AskIng Rent: The doIIaramountasked ~landlordsforavailabfe
spaceexpressecl in dollars persquarefoot peryear in most parl5
afthecountry. and dollars persquarefootpermonth in areas
afCafifomia and selected othermarkets.lndustrial rentsare
expressed astriple netwhere aDcosls including but notDmIted
to, real estltetnces. insurance and common area maintenance
arebome l;ythetenantona pro rata basis. The asking rent
foreach buildIng in the marketiswelghed l;ytheamounta
available space in the buikfms
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. Grubb & Ellis statistics are audited annually and may ~
result in revisions to previously reported quarterly and final .g
year-end figures. l5
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Minneapolis
Industrial
Asking Rental Rates
Warehouse/Distrlbutlon Space, Year End
($/SFlYr. Triple Net)
$5.00
$4.80
$4.60
$4.40
$4.20
$4.00
$3.80
Source: Grubb & Ellis I Northco Real Estate Services
'01 '03 '05 '07 '09P
Vacancy and Absorption
Year-End (in Thousand SF)
4,000
3,000
2,000
1,000
o
-1,000
8.0%
6.0%
4.0%
2.0%
0.0%
'01 '03 '05 '07 '09P
_Absorbed =Vacent
Source: Grubb & Ellis I Northco Real Estate Services
SF Under Construction
Year End (In Thousand SF)
2,000
1,500
1,000
500
o
'01 '03 '05 '07 '09P
Source: Grubb & Ellis I Northco Real Estate Services
~
~//li1 GRUBB &. ELLIS.
r E:"J. fram lns/ahttDlIIsdbi
Another year of slow growth is expected for the Twin Cities
industrial market in 2010. However, a return to positive
absorption and stabilizing rates are first positive signs.
It has been predicted for the last 18
months that the Twin Cities industrial
market would stabilize and enter the
recovery phase in 2010. Many
economic indicators are beginning to
lend credence to this prediction, but
it might be premature to forecast a
full-blown recovery. Some market
optimism from macro economic
indicators such as jobs and
consumer spending show signs of
improvement. The number of newly
laid-off workers filing for
unemployment aid fell by 35,000 in
November of 2009 to 466,000, the
fewest filings since September of
2008. Gross domestic product grew
by an annualized rate of 2.8 percent
in the third quarter of 2009 after
shrinking by 0.7 percent in the
second quarter. While these two
indices fall far short of predicting a
full scale rebound, they point
towards a stabilizing economy. This
should positively affect the Twin City
industrial market and increase
overall activity.
The lack of any significant new
construction is a positive factor in
2010. New construction has
averaged less than 500,000 square
feet per year during the past two
years, compared to the previous
five-year running average of nearly
1.3 million square feet. This should
leverage a slight improvement in
absorption, and serve to increase
stability in the market.
The healthcare and the medical
device industries playa strong role
in the "health" of the Twin Cities
industrial market. Newly proposed
health care and venture capital
legislation will have a significant
impact on the local medical device
and bio-science industries. Major
employers such as Medtronic, St
Jude and others have all laid off
workers, and many start-up firms
and divisions are opting to locate out
of state. Without legislative
intervention to help promote
continued growth in Minnesota, the
industrial real estate market will
experience further losses.
In 2010, landlords will continue a
very aggressive campaign to retain
existing tenants and attract new
prospects to fill current vacancies.
The easing of the financial markets
should afford the industrial
ownership entities the ability to
finance necessary tenant
improvements and incentives. With
capital comes progress, and
transaction velocity.
Tenants with real estate
requirements in 2010 will have the
upper hand in negotiations. With a
few exceptions, overall net rates will
flatten out. Landlords will have to
use concessions by necessity to
compete for deals.
9b
Image Enhancement
Cam~aign uses parking meters, sidewalks,
storefronts and smartphones to educate
Downtown VISion Inc., the improvement district of downtown Jack-
sonville, FL (est. pop. 807,800), recently launched a public education cam-
paign featuring whimsical information ''bubbles;' which are installed in
storefronts, on sidewalks, and even on parking meters throughout downtown.
The goals of the campaign, titled "explore the more," are to educate people
about their downtown neighborhood and improvement district, engage their
sense of community, and encourage them to explore downtown.
Challenge: Promote all businesses and engage all stakeholders. "One
of the challenges we have is, we had to figure out a way to develop a cam-
paign that applied to the shoe store, the restaurant, and the printing compa-
ny. We have a real mix of retailers that are down here. How do you promote
all of them at the same time?" says Pamela Elms, director of marketing for
Downtown VISion Inc. (DVI).
(continued on page 2)
Arts/Entertainment
Good practices for any and every event
When it comes to creating events, it's perfectly okay to be a copycat.
''I've worked in this particular industry for about six years now, and
there really isn't too much out there now that hasn't already been done. So
whenever we're looking to add a 'new' event, we just look to other cities to
see what they're doing. I tend to look for a larger city, and see what can be
adapted for ours," says Sue Butler, executive director of Great American
Downtown in Nashua, NH (est. pop. 86,580).
So if originality is not a factor in producing successful events, let's look
at other factors that make them work well.
Cross-promote restaurants and 'retailers. An example of successful
idea importing is Great American Downtowri's ''Taste of Downtown
Nashua.~' Billed as "the second longest-running food and beverage event in
NH," it's a cross-promotional event, pairing restaurants and retailers, that's
been running for 15 years.
(continued on page 8)
@ 2009 Alexander Communications Group, Inc. All rights reserved.
er
Vol. 34, No. 12 December 2009
In this issue
Promoting mobile website on
parking meters. Brilliant move
increased traffic to the website
by about 200 percent since the
campaign's launch. . . . Page 2
Bubbly campaign has a busi-
ness side. Marketing brochure
touts the virtues of downtown
Jacksonville on one side, and
those of the downtown BID on
the other. .......... Page 4
New organization tacldes weak
local awareness. Efforts
designed to get people who
normally drive right through
downtown to slow down, have
fun, and explore. . . . . . Page 5
Looking Ahead to June. Get
ready for Summer Solstice,
Father's Day, spring cleaning,
little League baseball, and six
months 'til Christmas I .. Page 6
Make friends with the mall.
Downtown finds an advertising
bargain at the mall, of all
places. . . . . . . . . . . . . Page 8
Multi-generational travel opens. ..
opportunities for downtownS~ :
Four tips to attract this growing
market. . . . . . . . . . . . Pagel 0
Education campaign reaches people on many levels
(Continuedfrom page 1)
"The other challenge for the campaign was to fig-
ute out a way to engage all the stakeholders at all lev-
els. How dd we engage the prop~rty owners and the
street-level retailers -as well as the Visitors ill the
general public who are coming downtoWn?"she says.
The overarching theme of "Explore the more," .
fits the bill. "We want people to explore more of
what downtown has to offer, and particularly what
the improvement district has to offer. There are
more things to do, more services provided; there's
more history; it's more special, all of those things,"
she says.
"This initiative is about creating a sense of com-,
munity for downtown as a neighborhood," adds Jay'
Southerland, Downtown Vision's board chair. ''At the
same time, we are able to collectively promote busi-
nesses during this challenging economy and ultimate-
ly generate some new energy for downtown,"
First-floor window bubbles deliver a wide
variety of clever messages in a fun format
''The bubble concept of the campaign is an ideal
way to deliver a variety of messages to all of our con-
stituencies and at the same time have some
fun," adds Terry Lorince, executive director
of DVI.
''Through the bubbles, which are our
primary communication vehicle, we were
able to convey a variety of messages, from
historic facts to things to do. With the retail-
ers, we developed customized bubbles for
their windows that relate directly to the
products or services that they provide,"
Elms says.
The bubbles provide a clever solution
to the challenges stated earlier, as they can
be tailored to fit every business, and they
also enhance the visibility of the downtown
organization, which had been limited. The organiza-
tion's name is in the comer of
each bubble.
The 10" x 10" window bubbles, which cost DVI
$7 apiece; are static'clings that adhere to the inside of
retailer storefronts. The customized bubbles add win:"
dow-shopping interest for passersby, and identify
merchants as team players in promoting downtown.
For the campaign roll out, 50 first-floor business-
es signed on to participate. Another 1? have called:
DVI since, requesting window bubbles. of theiC own~
Developing copy for each business's bubble,"was
a collaborativeeffoIi" Elms says. "The .first ihirig we
did was' we took ideas from the retailers, or whom-
ever the copy was for. If they had a particular idea 'or
something they really wanted people to know, that
would be our jumping-off point.
The entire Downtown Vision team then spent
many hours brainstorming ideas for copy, and worked
with a local writer who devised a formula to focus
and vet creative ideas. She also wrote some copy, but
the majority was written in-house by staff.
"Is it conversational? Is it humorous? Does it
get the message across - is it clear? Is it a play on
'promoting mobile. ." . ..'0.:
. parl9.,g mete .... is a brilliant move .'
,';
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2
Downtown Promotion Reporter . www.DowntownDevelopment.com
December 2009
words? Does it rhyme? Does it relate to pop cul-
ture? There had to be some kind of spin to it so that
it didn't come across, (a) as boring, or (b) as sales
signage. You know, it wasn't going to be, '50 per-
cent offShoe~,' O( anything lik~ that,inth~ sign~ It
. '. ., - - .
n~dedtoieallybe c()nyersa~qnal," 'Elm!! s.ays.... .
. _.,',.' . _ .: .," _, .", " l.,.! ," .
, Sam:p(~:copyfor l$dow bubbies: . '.
· MagnmcatCafe- ''Rem men eat quiche. It;s
the best in town." .. . ..
· Hemming Plaza Jewelers - "Come rock out!"
· Wyndham Hotel-
"Sunrises on the river are
so beautiful, you'll beg for
a wake-up call."
· Gus's Shoe Shop -
"Saving your soles Mon.,.
day thru Saturday."
'11
)
Taking it to the streets
- literally
Speaking of shoes
pounding the pavement,
"we also have bubbles on
the sidewalks. They're
large, 3' x ~', We can.put
them onvehical concrete
surfaCes as well," Elms .
says. .
The big street bubbles
are made of outdoor, non-
slip, adhesive material
designed for this purpose.
They should hold up for at
least six months.
The sidewalk bubbles
contain fun facts, history,
directional signage, gener-
al promotion of downtown
dining and services, and
references to downtown's
social media and mobile
websites.
Again, the bubbles are
written in a way that is
meant to ~ .(X):Q.versational
and fun -'-if you w~re
wa1kit1g.doWntown.with
.... "'.-
someone who knows down-
town,what would they
share with you?
)
r December 2009
There are 150 bubbles on and along sidewalks,
which cost about $75 apiece. They were tested and
installed in partnership with the City;
Sample copy for sidewalk bubl>.les: ..' .
· History.~ew City Hal1A,nnex}"pesigned ~y
Henry Klutho In 1909, tl1ecity:s.' firstYJylq~ f~~
a p~ol, in the basem~n~.A centuiy later, it made a: ,
splash again. as the City ,!Jall Annex,';' (Friendship.
Fountain) "She said yes! Friendship Fountain-
inspiring proposals since 1965." .'
'~;=':':I
~~'~'-" '
~~'.'.
. " :' j!:'
"
..--. -
Downtown Jacksonville's uexplore the moreU campaIgn uses bubblescisitSc~lIingcard. COIn'pOlg"ii ': ,.
elements include: top, a new logo and a mobile website tailored for"smartphones; middle, dings and' .
stickers for store windows and sidewalks; bottom, parking meter stickers, a brochure, and door tags.
Downtown Promotion Reporter . www.DowntownDevelopment.com
3
· Retailers. ''Run your errands in one block and
still have time for lunch. Upgrade cell phone (check).
Purchase birthday gift (check). Pick up contact lenses
(check)~" ,
· 'lnfo~atil;)n~,,''Where to go, when you're on
thego.DTJAXorg" (Mobilewebsite). "
. · WJl~diJ;J.g.(Off Main Street:bridge, a list of ,
sites with arrows) Friendship Fountain (arrow), Mar:-'
itime Museum (arrow) Jacksonville Historical Center'
(arrow) MOSH (arrow) Water Taxi (arrow).
· Fun. (Main Library) "We've
got more stories than the Sears
Tower." (Any location) "1 love
this town!"
· Parking meter stickers.
These small stickers, placed on
about 700 meters, identify the '
downtown improvement district and
promote awareness of the campaign
as well as downtown's mobile web-
site (see box, page 3).
One thousand brochures, which cost $1 apiece
to print, were mailed to all property owners. Prop-
erty owners can request more from DVI for their
leasing and marketing ,efforts, and a half-dozen
haveaJready request~d the1Il'
Door hanger post-it notes are an,other tool , ,',: ,', '
used to increase awarenes~among bll~inesses,and , "
property pwners abouttbe services ,provided by
DVI. Often, DVlcrewsare hard at, work when prop-
erty and business owners are away or their business-
es are closed. These post-it notes
are an unobtrusive but noticeable
way to inform business and proper-
ty owners as good deeds are done
for them. This clever idea was
imported from the Downtown
Vancouver Business Improvement
Area.
People are responding well
Judging from the variety of
requests from property owners
and others that have come in to
This window cling promotes a shoe store. ,the,DYI offices, thecampa,ign has
,made a positive impact. , "" '
, ' -
. "Retailers call to~k49.w.w:e c~hylp,the1Il to
;'pamt a mural on tl;1e side of their bqiJcfu1g, if we
have ,any more maps and, guides, or how, they can,
become involved in our events," Elms says.
What's more, the new brochure reminds proper-
ty owners that DVI is invaluable to, them. "Where-
as, up until now, we haven't really told our story
or painted that picture in a concise and packaged
way."
The bubble has become such an instant icon in
Jacksonville that DVI now has ahubbl~ logo. DVI's
email updates have also received a facelift to corre-
spond with the look and feel of the campaign.
The press and general public love the campaign,
too. "The telling part was when we were out in-
stalling these," Elms says. ''Because, of course, the
staff had to be out working with our sign company
to figure out placement and direction." And local
workers passing by greeted the DVI staff with enthu-"
siasm and curiosity.
The key quality of thecampaignthato1:h~r
downtowns can learn from, she says, is that ',~it's
Inultifaceted. It'saccomplishingIiu:rnero~s goals." ,
, -
Contact: Pamela Elms, DoWntoWn VlSion inc., (904) 634-
0303 ext. 222, pamela@downtownjacksorwille.org. mm
Campaign also has a
business side
, OI1,t4e~usiness ,'side of tbis campaign, Downtown
Vision J.:nc. has developed a four-:page marketirig
b:r:QChure, which touts ,the Nirtues. of downtoWn on one'
side and the wide variety of services provided by the ·
improvement district on the other: The bubble theme
is used throughout.
"One of the things that we needed to do with the
campaign was to communicate more with our proper-
ty owners about when to use us, and the services we
provide," Elms says.
"Also, in researching for this campaign, we
learned that neither our economic development com-
mission nor chamber of commerce had a piece to
market downtown with. There was nothing on just
downtown Jacksonville." -
So DVI developed the fold-out brochure to
meet those needs, and provide property owners with
something they could use in their leasing efforts.
''Property owners in particular needed something
to go along with that one-sheet flyer on ,the space that
they're try~g to lease, to showcas~e photos, of down-
town,~d thetl.ringsthat are hapPening. And :al80, to
sell ,the J~t tJIattheir property is within an improve-
ment ~~st;r;ict, and clearly we, experience a higher: level
of service in terms of clean, safe, and marketing
downtown," she says.
4
-j
Downtown Promotion Reporter . www.DowntownDevelopment.com
December 2009
Branding/Supporting Merchants
New downtown organization tackltts weak local awareness
The Castle Rock (CO, est. pop. 44,370)Dowil- everything that downtown had to offer. They would'
town Development AuthoritY formed in November come to dowIitown to go the'library or to the post
2008 after,doWIltoWIl voters selected in favoNlfits office, the two rnainreas6ns:.But1:heie's~iofniore'
creation. While public sentiment-was favorable to happening here. So we reaIiZecf\iveneedec1 tb@ucate
forming the DDA,the organization quickly recog~ people; and inform them about aI1the differeritb1isi~'
nized a lack of knowledge about downtown events nesses," says Angela Copeland, marketing director, ' .
and businesses, even among the town residents who for the Downtown Development Authority.
frequent the nearby library and post office in droves. "Castle Rock had a lot going for it
So creating a strong brand identity when we arrived. They had considerable
for downtown has been an early public support, strong partnerships, and
focus area for the DDA. several popular destinations already in
Since the DDA was formed just place downtown. A big antiques mall is
over a year ago, it's created: a regional destination. There are sever-
e A first-ever logo for doWntown al high-end restaurants, and a number
and the tagline, "Meet Me At The of popular downtown events. The
Rock." The logo and tagline appear library and the post office were really
on drink coasters at all downtown big draws - something like 25,000
restaurants and bars, as well as book- people per month go to the library,"
marks at the library, the town's top says marketing consultant Hilarie
attraction. It reflects downtown Castle Portell, principal, Portell Works.
Rock's "small-town charm with urban "Survey research indicated that
flair" brand identitY. communitY members like haviftga
eAwell-produced website and ,.... . downtoWn. They moved to the area'
newsletters that inform area residents . Cas~e Roc~ PDA's holiday n~wsle~er: beCause it felt like a>small town{but...
about what downtown has to offer. The singh~' sheet, they wanted'suburbari amenities and better proximitY
quarterly newsletter is inserted in homeowner associ- to their workplace. They came downtoWn a few times
ation newsletters as well as the local newspaper. The a month, but didn't tend to shop around once they got
newsletter covers downtown businesses, as well as there," she says.
events downtown. Beyond awareness, there are two other challenges
e Lamppost banners that inform people about that these marketing efforts are addressing:
what downtown has to offer, and demarcate the e Giving people reasons to come downtown
pedestrian-oriented core. The banners read either: despite convenient, ample access to retail elsewhere.
Fashion, Dining, Wellness, Home Decor, or Events. The DDA's periodic newsletters, roster of events, and
So as motorists pass down the :rruiin street, they get a website all serve this purpose.
sense of the variety of businesses and things to do in e Two long arterial streets through downtown
downtown Castle Rock. encourage a "drive-through" effect for motorists.
The goal of all these efforts is promote better use The lamppost banners, improved highway signage
of downtown by local residents - to familiarize approaching downtown, and upcoming crosswalks
more of them with downtown businesses and events. that are currently being designed will all mitigate this.
"One of the things that we realized when the The "Meet Me At The Rock" tagline, Portell
DDA was first formed is that residents didn't realize says, is tailored to entice the target market of subur-
banites and former city dwellers who now live qUiet
lives within five',mIes of downtown to'reconneCt-with
their lost sense of urban cool, "that taste of urBaJ:iltY:'.,
. . ' .
Cont~ct: Angela Copeland, . Castle RockDoWnioWnD~el~
opment Authority, angela@downtowncastlerock.com, ,
Hilarie Portell, Portell Works, hilarie@portellworks.com. nmJ
'I .
Web Extras
To view the current DDA 'newsletter, visit
www.DowntownDevelopment.com and click
on Web Extras.
..-;::::..
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~j
December 2009
Downtown Promotion Reporter . www.DowntownDevelopment.com
5
looking Ahead ... to June
Get ready to celebrate the approach of summer, and other
traditionc~dJuneevents lik~ LEON and springcle~ning
150 booths, food, three entertain-
ment stages'with over 30 per-
fo'rniing. arti~ts~ the' Midnight Sun
Baseball Game, which begins at
10:30 p.m. when the suri. sets and
ends as the sun rises. And, of
course, there is shopping under
the midnight sun as downtown
stores stay open late.
· Green Event. Other summer
solstice celebrations have a decid-
edly environmental bent. Blacks-
burg, VA, celebrated its second
annual Summer Solstice Fest in
2009. The event was recognized
by the VIrginia Department of
Environmental
Quality as a green
>;.event. ro qualify,
,. all, event. ~as tq
pUl>lic.ly ,offe~recy-
cling to attendees,
eliminate the use
of styrofoam,
reduce the use of
printed materials,
reduce the amount
of waste produced
by the event, and
advertise that it is
a green event. It's
,;.-'t
an opportunity to
protect the envi-
," ronment and gar-
ner some added
publicity at the
same time.
· Recycling. The Downtown
Delmar Village Association in
CalifoJ,JIia, . launched its downtown
recyclingprQgramin conjunctiQn '
with its Summer Solstice event.
The first phase of the program
In aninterestingjuxtaposi-
tion this nionth, downtowns will.
be welcoming summer with
summer solstice events and also
celebrating the half-way point
to Christmas with lots of win-
tertime activities.
Summer Solstice
In the Northern Hemi-
sphere, the Summer Solstice, or
as it is more commonly known, ,
the first day of summer is on
June 21, 2010. And there are
lots of opportunities to kick-off
the summer season downtown.
Some of the
more popular
summer solstice
events focus on
~,Ja,rnily, '..
community, and
environmental
awareness.
: .;:': '-:-:; .... : "::::-':-':: .:i::;_:.....:-:.. :-i'J'>:'_>:--,'_";,:
:> A~cither'$DCJYevent to
!serV~ the cornm~nity . .
iNQWinits ~oth y~cit,Recil .
i,Men Coobs an annuol .,..' .
. 'I Father's Day celebration feator-
i ing menvolunteerine to cook "
t for and serve. thecomml1riily. '
jTicket$ales are ,used to raise, . .
i . 'money, which 'helpssuPPQrt" .
! . ,pdrtnering :!1()t-fQr~proHtorg(l.oj~ ,
; 'zations. Over adozeriofficidl. .
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i~venl} Qre held in mc;tjor: m~trQ- · ..
I ~PQJjtqnoreqs in cQIlj1,lnction
[withthe sponSorl ReqlMen .'
iChariti13~' while smaller} ina~
I'. pendent events are olso held ..
[.,aroundthe country. ....... .
r iLeqrn m~r~ at http://W\IfW;r~~
i.li!encoOk.comlindex:hfml
i- . .
L~""L:..;.,c.;:::;":.:.,~.:;,;';.;.'(:;;;:;;1",,,,,,,,,;,,~.L,.;:;'~:'::,~2;;.;,,;;;<,,::'~~~..<.:;lL-;::.:,.:~;d
· Midnight
Sun. In Fair-
banks, AK, the
spring days are
long - reaching
just over 21
hours during late
June. To take
advantage of the
midnight sun
and welcome the
summer, the
downtown asso-
ciation hosts an annual Mid-
: night Sun Festival. It is
i Alaska's largest single-day
event, which lasts 12 hours
, and attracts thous~ds of visi-
. tors; Highlights include over
6
'\
'. involves using temporaiyrecy-
cling containeis, the second phase
will see a move to pemiarient con-
tainers for trash and recycling~
And the third phase involves a
recycling education program for
downtown businesses.
Six months until Christmas
A flurry of articles in the
national press this summer
focused on several of the major
retail chains' efforts to promote
Christmas in July events. In the
hopes of improving lack-luster
sales during the summer months
the likes of Kmart, Sears, Toys
"R" Us and others tried this
approach. The debate raged about
whether this was an inspired or '. .
a desperate move. For many'
doWntowns, however, it is a time-
honored tradition. And there's.
even a special' day to celebrate
called LEON (Noel spelled back-
wards) that falls on June 25, six
months between one Christmas
and the next.
· Non-Profit Row. The 23rd
Christmas in July Festival was
held in West Jefferson; NC; in
the downtown arts district. The
annual street festival features
handcrafted arts and crafts, local
and regional music, children's
activities, local food specialities
and a non-profit row.
· Outdoor ice-skating.
Downtown Livermore, CA, cele-
brated.LeononJuly 24;.25 and
26, 2009. Highlights:of ,the event
include outdoor ice~skating, on a
synthetic rink, outdoor screenings
Downtown Promotion Reporter . www.DowntownDevelopment.com
December 2009
CI' ,r' F t' l
ln$tma::; ;:1 f',jt\L~ tJjj rVC{
/C 'j
of holiday movie
favorites, and an
appearance by
Santa in shorts
and a Hawaiian
shirt. Merchants
are also in.,
volved, offering
special Christ-
mas in July
deals. But you
won't find them
marking their
doors with traditional holiday
wreaths. For this event, participat-
ing merchants hang Summer Tube
Wreaths.
· Maps and coupon books.
They were spreading Christmas
spirit during the summer months in
Glendale, AZ, too. Guests can start
their day at the Glendale Visitors
Center, which distributes maps to
participating stores and coupon
books, along with gift bags for.the
first 500 visitors: Guests can then
travel throughout the downtown in
air-conditioned comfort all day,
courtesy of the Glendale Express
Shuttle. Many shops and restau-
rants in the area are decorated for
Christmas, playing holiday music
and offering discounts on decora-
tions and gift items. ''Last year,
Christmas in July was one of our
most successful promotions and '
we've been looking forward to it
all year," Lorraine Pino, Glendale's
tourism manager told The Arizona
Republic.
Spring cleaning
June is the traditional time
for community clean-up cam-
paigns. It"salso timely to remind
downtown business oWners to
spruce up theii storefronts. The
Downtown Paso Robles (CA)
/
December 2009
Main Street Design
Committee, sets aside
time on an early Satur-
day morning to rally all
business owners to
. . cleanup. The event
starts at,8a..m. an4 busi-
. ness owners are'remind-
'. ed to look their best by
taking care of the fol-
lowing in preparation
for several upcoming
summer events:
· Clean barrel planters, add
plants
.. Wash windows
· Paint front doors
· Put up new spring flags
(available from the main
street organization)
· Sweep storefront area
· Clean awnings
· Mulch or plant around trees
· Clean gutters and sidewalks
· Pull weeds and remove litter,
back and front.
Uttle League season gets
underway
The start of the little league
baseball season is noted in many
communities with the traditional
little league parade down main
street. In Boonton, NJ, hundreds
of children who play in the tri-
town' league airive downtown
accompanied by parents and
coaches. The parade winds its way
down main street, ending in a park
where the hungry athletes enjoy,
what else, hot dogs, soda and pop-
corn. Other towns like Carlisle,
PA, welcome their victorious
players with. a parade through
downtown: Carlisle recently cele~
brated advancement into regional
playoffs forthe Little League
World Series. m:mJ
o .
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June is Ii ..
,,'<: ',.: :'. -"-"'- ,', .
..First week
. Fishing Week
.....:
~~:
t'r~4:
~':l,
,: ,
,:'." c'- ',. ,',
.... . Second Week '. i
UttIe leagu~ 8QsebaU Week
. National Rjver CI~riup Week
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June 6
National Cancer Survivors Day
D-Day Anniversary
(Allied invasion of Europe,
1944)
June 7
. First day ice cream was so"ld in .
, the U.S; .
o
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...
June 14
Flag Day
(Anniversary of adopting the
U.S. flag in 1777)
June 14. June 18
~ Take Your Pef to Work Week
June 20
Father's Day
June 21
Summer Solstice
(First day of summer) ,
. June 25 '.
. LEON Day .'
(Six months u'ntil Christmds)
Downtown Promotion Reporter . www.DowntownDevelopment.com
7
Good practices for any and every kind of event
"You know how in a lot of 'Taste Of' events, you
go to one location, and there are 30 or 50 restaurants
there? Well the way we do it is, :w~ actually pair one
restaur@Lwith one retaijeJ;, for 9Q~IIigl1t, the first
Wednesdayofeyery JUll~," :Butler says.
For example, The Saffron Bistro, which serves
"Am~rican Ecleeticcuisine with an emph~is on local
organic ingredients," may be paired with Bippity
Boppity Baby, an infant boutique a few doors down.
"For three hours, they'll serve food samples from
there, and people buy tickets from us prior to ,the
event, which almost always sell out," she says.
Tickets are either $35 or $40, depending on how
far in advance they're purchased, and allow access to
about 25 locations. Each store hosts a dllferent
restaurant and stamps tickets at the door. Entertain-
ment is set up in about six of the locations, and some
businesses add wine or beer sampling to the mix.
"It's a lot of fun. It's a huge hit around here," she
says. "That is one event that you do have to keep
within a walkable range. You lure people into the
stores with their love of food," and a good many of
them find or rediscover pla~s t() shop. '
,Great American Downtown pairs up the restau..;
rants and retailers, and attempts to match clientele
while rotating the teams each yeat. Between $3,000
and $4,000 is spent annually in marketing the event,
which is a major fund-raiser for the organization.
This year was the first time that tickets did not sell
out. About 100 fewer tickets were sold than normal.
Even so, the event still made about $22,000.
Thste of Downtown Nashua has worked out so
well that downtown Nashua introduced a second annu-
al restaurant event last October, Fall Feast Week, which
offers three-course prix fixe dining at a good discount
Monday through Friday nights. The idea has also been
exported to nearby Manchester (est. pop. 108,600),
where the Intown Manchester BID has been running
"A Taste of Downtown Manchester" for several years.
"Restaurant weeks themselves have just been
tremendously successful with cities that bave really
strong dining scenes. And downtown Nashua is espe-
ci@y kIiown for its dining sC,ene. So it rrulde sep,se,
when we W8.1lte4 to add some new events this year, to '
add a restaurant w~lc," :Butl~rsays. ',' ",' ','
Come up with catchy names. "We wanted to
come up with a catchy mime so that we weren't just,
saying, 'Downtown Nashua's Restaurant Week.' I've
8
(Continued from page 1)
found in the past that coming up with a more catchy
name gets you a little more publicity," Butler says.
"In one of my, old jobs, we had a concert series at
noon thatweused,tp run. The 'first year, we called it
'Noontime Performances;' ,and we got some publicity
out of it. The next year, we ,renamed it'Buskers on,
the Bricks;' and I got a ton of publicity out of it,
because no one knew what a busker was."
Still, while the name should pique people's
curiosity, it shouldn't be cryptic or hard to under-
stand. "When people hear 'Fall Feast Week,' the word
'feast' makes them think of food or dining," she says.
Ease the workload through partnerships.
Downtown Nashua has about 60 eateries, and 17
resta~ts took part in Fall Feast Week.
"This is a really simple and easy promotion for
the restaurants to do. We schedule it, we reach out to
our restaurants to find out who's interested, and find
out what they want to offer.
'We partnered with a beer distribution company,
which scheduled beer tastings with many of our
restaurants on their own. Some of our restaurants also
organized their own wine tastings. Then we also part-
nered with an entertainment coordinator who worked, '
out a deal with sollie of the restaurants to get enter:-
tainers at a really low cost," Butler says.
"Sometimes we take care of those things our-
selves. But right now, we're in a crunch, with our
biggest event of the year 'coming up. So there are
times when it's easier to farm out that responsibility
to someone else. And it didn't cost us anything to
have this guy coordinate entertainment for the event."
Restaurants love restaurant weeks, she says,
"because they don't have to leave ,their location, they
choose what they can afford to do, and it helps bring
them business on the nights when they're typically
slower."
The first Fall Feast Week went from Tuesday
through Monday, and Great American Downtown
accommodated the restaurants' requests after that to
shorten the event and not extend it to Saturday and
Sunday nights, when they're typically busy or closed.
Make friends with the mall. In promoting Fall
Feast Week" Gt-eat American Downtown purchased
online advertising and utilized its website, Facebook,
. . - . - . - . - .
and themailiJJ.glists of all participating downtown
restaurants.
"Some of them have massive mailing lists. One of
\',
'I,
, ,j'
Downtown Promotion ,Reporter . www.DowntownDeve/opment.com
December 2009
our downtown restaurants has 10,000 subscribers to
his e-blast. So with everybody working together to
help promote the event, it doesn't have to be a big,
expensive advertising campaign," Butler says.
All told, downtown spent only $500 in marketing
Fall Feast Week; "The funny thing that we did is '
some advertising with the mall, on
the other side of town," Butler says.
That wilikely partnership worked out
"pretty well, and was very inexpen-
sive! That mall gets so many people,"
she says.
"We utilized their leader boards, or
signs that are lit up at the entrance to
the mall. 1 can't even fathom how
many cars drive by those signs. For us
to be able to use those signs was
tremendous. And for them, the way
this year has been with money, they
reduced their costs. It's normally $400
per week, and it dropped down to
$100 to be up on that. And we only
had to share the space with three other "Taste of Downtown Nashua" cross-
advertisers.
promotes stores and restaurants.
"So it was tremendpus. We were
hitting another market of people. It wasn't just seen by
people entering the mall, because it's right on the main
drag where our mall is. So we were hitting a whole
slew of potential diners that maybe only drive by that
area. For an event like this, where we didn't have the
marketing budget that we tend to have for some of our
larger events, we had to get more creative."
Negotiate fees to lower production costs.
Downtown Nashua's other major fund-raiser, since
1993, is its Wmter Holiday Stroll, a free event which
attracts close to 30,000 people from across New Eng-
land, including many from neighboring Massachu-
setts, four miles away. Shuttle parking is used to
accommodate all the attendees.
The evening kicks off at 5 p.m., with a quarter-
mile, candlelit walk of thousands from City Hall
down to a square where the City's official Christmas
tree is lit. Much of the downtown is closed to traffic
for the evening, allowing strollers to wander to art
performances, sample offerings from. street vendors,
dineinfinere~taurants;and do ;holiday shopping.
In front of the bank, there;s also a charity drive,
where people can drop off items such as canned
goods, disposable diapers, and new, unwrapped toys
for local charitable organizations.
The event features 40 performers at about 20
venues - churches, banks, and other places that can
hold large numbers of people.
''We program those with entertainment until about
10 o'clock at night," Butler says.
The Wmter Holiday Stroll raises moiieythrough
sponsorships; a new beet garden that,
was added lastyear~ and a raffle.' ''Last
year, we raised $17,000. Our goal this
year is to raise $20,000," Butler says.
Usually around $6,000 to $7,000
is invested in marketing the Wmter
Holiday Stroll. This year, Great Amer-
ican Downtown did not meet its spon-
sorship goals. Sponsorship fees totaled
$20,000 versus $37,000 the previous
year, which forced the group to cut
about $10,000 in expenses.
Pricey entertainment was the low-
hanging fruit. Two years ago, the
event's entertainment budget was
about $18,000. Last year, it was cut
down to $9,000, and this year, it-was
trimmed to $5,000.
~'Basically, we've done that by. ..
negotiating with people, sayingj~We really:need 'You
to donate your perfo1'i:l1$ce, because this isa 'fund"":' ,~
raiserfor a non~profit.' There were people being pmd
huge amounts of money to play in the past, when they
were one of 50 acts," Butler says.
"I used to book concerts all the time for the City
of Manchester. I can't believe, when you're doing a
fund-raiser and you have that many acts, that anybody
should be making $1,500 to play for an hour. We cut
way back in that area.
''We're very fortUnate that there are a lot of gener-
ous entertainers and performers in the community and
outside the area. And they know, it's a tremendous mar-
keting opportunity for them, to be exposed to that many
people. So most of our performances have been donated
this year. And that helped us cut back on that budget.
We've also negotiated for trades in other areas."
The event's size and longevity makes it ~specially
attractive to performing artists. Applications fromp~r7
formers for the WlIlter HolicIay Stro1i~ hel~ ~e.Sa~-',
day a.fter Thanksgivirig~'statt arriving 'in April. This :.
year, it attracted 70 app~cation~'for40 slots:,'" ,;,',
Contact: Sue Butler, ExecutiVe Director, GreatAmerictin
Downtown, (603) 883-5700, sueb@greatamericandown-
town.org. mD
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December 2009
Downtown Promotion Reporter . www.DowntownDevelopment.com
9
Tourism
Multi-generational travel opens opportunities for downtowns
Downtowns should ,always capitalize on whatever
opportunities may, exist to attract tourism. To learn
. what .opportunities are emerging for smaller dowp.-
toWns, Downtown Promotion Reporter recently'spoke
with Peter Yesawich; chairmahand CEO ofYpartner~
ship, an Orlando, FL-based marketing firm specializ-
ing in hospitality and tourism.
Multi-generational travel is on the rise
The standout trend is that extended families are
increasingly traveling together, and bringing the little
ones along. "Travel with children is the only form of
travel in the U.S. that has really demonstrated any
significant growth in its incidence in the past five or
six years," Yesawich says.
"Among adults in the U.S., back in 2000, rougWy
one out of four reported to us that they had taken at
least one vacation with children in the last year. That
number is now up to over four out of 10 - so there's
been a pretty dramatic increase in the percentage of
adults ~at are travelling with kids," he says:
; ''Wl1.at's fasc~l;lt~gab6ut that is that chil~en
reside in oilly rougWy one third of households ill the
U.S:Sowhenyou'reconCile the foUr out ofJ.O adults
travelling with kids, but only 'one out of three house-
holds with kids, you immediately discover that there's
a wonderful new market emerging - and I would
think that this would be great for small towns - it's
multi-generational travel.
"It might be mom, dad, the kids, and grandma, all
traveling as one unit. Or increasingly, what we see is
the grandparents who are taking the lead. So it might
be grandma, grandpa, mom, mayhe dad's staying at
work, and granddaughter.
"That's important because about one third of all
of the people who travel for leisure in America today
have reached the life stage where they are grandpar-
ents. And rougWy three out of 10 of those took at
least one trip with their grandchildren last year.
Related travel trends are higher incidences of
people who are driving as opposed to flying to their
~estinations, and who are traveling despite a more
~odesthpN~ehold lncQq:le. '
The multi-generational family market should also','
he of interest to small downtowns, Yesawich says,
because the kinds of attractions typical in small-town
destinations are different from those that people find
in larger urban centers, which appeal more to older
and more' affluent travelers. Another advantage of'
sniall downtowns is the perception ofsafet}rand
secWity, which is a top concern for families traveling
with children.
"So to me, it would have -all the right signs. And
the good news is that it's a rapidly growing market
because of the aging of the U.S. population," he says.
Tips to better attract travelers to downtown
Once we know who we're marketing to, the other
piece of the tourism puzzle is finding the right mes-
sage a.n,d medium. Yesawich offers the following tips
to attract more travelers downtown.
1. Keep website content fresh. "The primary
marketing medium for small towns is going to be
their web site. So I would encourage any destination
to not only have one, but importantly, keep the con-
tent fresh," he says.
2. Link to all downtown businesses from the
destination website. What's more, "smal1etbusiness-
es in those small towns should all be linkedto'the,
destination w.ebsite. Because the traffic that is gener-
, ated by those sites can be very instrumental in driving
traffic to their businesses."
3. Partner with the local chamber or visitors
bureau, or start one. There is strength in the consol-
idation and coordination of collaborative efforts. A
strong central promotional organization will avoid the
biggest oversight destinations make in marketing,
which is a lack of coordination. "Try to inventory all
the interesting things there are to see and do in a des-
tination, and make sure that those are presented in an
attractive, compelling way:' he says, because on a lit-
tle marketing budget, "every dollar is precious."
4. Market to a tighter radius. "As vacations
get shorter, the effective radius for marketing the des-
tination tends to contract. A four- to six-hour drive
radius is generally the outside edge of that. So con-
centratemarketing efforts within that drive radius.
The .reason for that is the most popular form of vaca-
tionin;theU.S. today is still the' weekend trlp,(four'
nights or less. Try to cultivate that business a little .
closer to home, as opposed tovehturing off to more
distant markets."
Contact: Peter Yesawich, Ypartnership,www.
ypartnership.com. mim
10
Downtown Promotion Reporter . www.DowntownDevelopment.com
December 2009
? fj lQ X:(
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~ ................................................................................
'\
Enioy a great walk
In 27 Mississippi towns and.. :
cities lots of people wentwalkin'
down their main streets on Satur-
day, October 31. These strollers
were participating in the second
annual ''Let's Go Walkin' Down
Main Street Mississippi," a state-
wide, downtown-focused event.
The annual hike is sponsored by
the Mississippi Main Street
Association and Blue Cross Blue
Shield of Mississippi. The two
organizations share the goals of
promoting healthy lifestyles and
local economic development.
While Let's Go Walking is a
statewide event, the job of plan-
ning and running individual
walks is handled locally in each
participating community. The
sponsor sayS the walking route
should be no more than one inile
in length. And they supply a lim-
ited number of T-shirts on a first-
come first-served basis. After that
it's up to each community to
organize and run their event.
For additional information visit www.
letsgowalkinrns.comlwelcome.html.
Downtown dining event
The city's web site is a high-
impact spot to advertise an event
such as Downtown Dining Week
in Joliet, IL. In this popular event,
diners are invited downtown for a
prix fixe meal. The price is typi-
cally based oil the current date
$20.09. The date of the city's
fouriding $18.76. Or some other
memorable date. In Joliet's case
an even 10 bucks is all it takes to
enjoy dinner downtown. Accord-
ing to the Joliet Visitors Bureau,
December 2009
participating restaurants noted a
. 40% increase in business during
. the promot~.oIi. (See more on "din:..
ing yveeks onpage one.)
Ride the Easter Bunny
express
Once a busy rail center, Dan-
bury, CT, is now home to a small
number of train trips but it still
has an extensive rail yard, a his-
torically refurbished station, and
a collection of 70 pieces of rail-
road equipment. And, it's all right
on the edge of downtown. The
area is now the Danbury Railway
Museum. It attracts visitors to see
the station and trains and to ride
through the six-acre rail yard. The
museum also hosts holiday and
seasonal events. For example, last
Easter they rolled out the special
Easter Bunny Express. Kids
under two rode free, anyone over
two paid $8 for the trip. Children
met the Bunny and enjoyed small
gifts to take home. Over a four-
day period the trains ran every
half-hour from 12:30 to 4:00 p.m.
Children and parents can also
enjoy other activities in the sta-
tion and aroUIid the venue.
Awards focus spotlight on
downtown
Awards given by the down-
town organization to businesses
and individuals make a great
vehicle for spotlighting down-
town. Here are award categories
from Several downtowns:
Green business of the year,
Professional of the year, New
business of the year, Non-profit of
the year, Cultural group of the
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year, Business expansion of the
Year, Member of the year, Innov~-
tor of ilieYear~ Entrepr~neur of the
year ... and the list, goes oJ,1! 4>ts
of publicity can be generated by
the announcement of the awards,
the naming of judges, and more,
all of which leads to the climactic
naming of the winners. Awards
breakfasts, luncheons or dinners
provide outstanding vehicles for
dispensing honors and garnering
top-media coverage for downtown.
New logo? Avoid grief.
Check the trademarks
Before selecting a logo or
tag line, pass it by a trademark
lawyer. The attorney can easily
,and relatively inexpensively run a
search. This\vill n~vealboth~iact
and approxiIDai~ marksm us~_ py
'others. The search should coyer
both registered and non-registered
marks. If the logo or tagline is
already in use, the attorney can
recommend next steps.
!>
National Film Board Virtual Global Task force
Parkers get a gift
In preparation for a bustling
holiday season, the City of Fred-
ericksburg, VA, has extended the
two-hour parking time limit on
downtown streets to four hours.
The change was made a~ the
request of Downtown Retail Mar-
keting Inc. in a bid to encourage
shoppers to spend more time
downtown.
" )
Pop-up stores becoming
more aHractive to '
landlords
Hope Consolo, chairman of
Prudential Douglas Elliman's
retail leasing, marketing and sales
division in: ithe 'article. ''It makes
malls and blocks look, well, less
pathetic."
"You go' up and down the
street and think, 'What is this? It
looks like a demolition project,'"
says Consolo. "So part of it is the
psychology."
Cpnsolo, who calls the trend
"pop and shop," says short-term
leases that last tbr~ months or
even justtwo years have become
"more fashionable." It allQ'Ws
brands and stores to test concepts
and neighborhoods to see if they
are good fits. Imm
\'-
While many landlords are
content to keep their retail space
vacant while they wait for the
perfect long-term lease, others are
becoming more open to the idea
of short-term leases, particularly
for the few months before holi-
days such as Halloween and
Christmas. According to a recent
article in USA Today, the difficult
economy may be pushing more
landlords to explore this option,
which can benefit the downtown
area overall.
''There is a perceptual benefit '
to temporary leasing," says Faith
12
Downtown Promotion Reporter . www.DowntownDevelopment.com
December 2009