HomeMy WebLinkAbout8. 2006 EDAC Workplan
1
. ~,
City of Shakopee
Memorandum
TO: Shakopee Economic Development Authority
Mark McNeill, EDA Executive Director
FROM: Kris Wilson, Assistant to the City Administrator
SUBJECT: 2006 W orkplan
DATE: December 28, 2005
Introduction
The Shakopee Economic Development Advisory Commission (EDAC) proposes to undertake
the attached workplan for 2006 and would like the EDA's input and direction prior to moving
ahead.
Background
The EDAC proposes to complete two projects currently underway and undertake two new
initiatives in 2006. The two projects underway are the Business Retention and Expansion
Survey, which is scheduled to be mailed by the end ofthe January, and research into Business
Incubators, which is to be presented to the EDAC in early 2006. Depending on the results of the
initial research into Business Incubators, this may be a subject that the Commission spends
additional time on throughout the year.
The primary new initiatives that are proposed include beginning conversations with residents and
property owners along the 1 st Ave. corridor regarding future redevelopment of the corridor.
These conversations would be geared at gaining a better understanding of the property owners'
future plans for their property. The second initiative would be a research and market analysis
project, with two goals in mind. The first is to gather accurate and up-to-date information
commonly sought by developers, real estate agents and businesses considering locating in
Shakopee. This includes information about local wage levels, educational attainment of our
workforce, household income, etc. Collecting and organizing this information would allow staff
to better respond to inquiries, and would inform the second part of the project. This would be to
commission a market analysis of land on the west side of Shakopee to determine its potential for
future commercial/industrial development and to inform upcoming land use and transportation
planning efforts.
Action Requested
At this time, the EDAC and staff are primarily interested in the EDA's comments and feedback
regarding the proposed workplan. IfEDA members would like to have a more in-depth
discussion of the appropriate direction for the city's economic development efforts, the
workshop session scheduled for January 24 would provide an opportunity to have this discussion
in the context of the newly-adopted strategic vision. On the other hand, ifthe EDA is supportive
t
~
of the proposed workplan before you, it could offer and adopt a motion to endorse the 2006
EDAC W orkplan and direct staff and the EDAC to proceed with the tasks contained in the plan,
~~cf~l~lJ~
, s Lyndon' 'lson
Assistant to the City Administrator
.
"
City of Shakopee
Economic Development Advisory Commission
2006 W orkplan
The mission of the Shako pee EconomicDevelopment Authority is to enhance the
quality of life in Shakopee by expanding and strengthening the local economy;
broadening the city'sjob base and increasing it's revenue base through
facilitating the retention, expansion, creation and attraction of quality jobs and
businesses, and through appropriate redevelopment activity.
1. Retention and Expansion of Existing Businesses
A business retention and expansion program provides a structured means for a
community to assess its business climate and helps to develop programs and policies to
promote economic growth. The program promotes job retention and growth by
identifying the concerns and barriers to growth facing existing local businesses. Studies
show that existing firms create 40 to 80 percent of all new jobs. It is also easier to attract
new business if it can be demonstrated that existing companies are successful and
expanding.
GOAL: Existing businesses will chose to stay and expand in Shakopee, to the benefit of
the business, its employees, local residents and the City.
CITY OBJECTIVE: To understand the concerns and barriers to growth facing existing
local businesses; identify and work to address those issues that are under the city's
control. Where possible, seek out and partner with others to address those issues beyond
the city's sphere of influence.
2006 WORKPLAN:
1. Complete a revised Business Retention & Expansion survey in partnership with
the Shakopee Chamber of Commerce.
2. Strengthen existing and develop new means of communication, both formal and
informal, between city staff and officials and members of the local business
community.
2. Business Attraction & Recruitment
As a rapidly growing city on the edge of a prosperous metropolitan area, Shakopee has a
lot to offer prospective businesses of all sizes. The city is looking to attract firms with
high-paying jobs to occupy existing structures and develop open land. While the City's
location south of the river has sometimes presented a challenge to business recruitment
efforts, the rising cost of land inside the 494/694 beltway and the growing workforce in
Scott County is expected to make locating in Shakopee increasingly attractive in the
commg years.
.
+
GOAL: The City of Shakopee will be home to a healthy business community that
provides well paying jobs and contributes to the continued prosperity of the community.
CITY OBJECTIVE: To serve as a resource for property owners, developers and
commercial real estate agents working to attract businesses to Shakopee; by providing
information, connecting interested parties, assisting with the development and permitting
process, and providing [mancial assistance, when appropriate.
2006 WORKPLAN:
1. Research, compile and present a professional packet of information and materials that
will allow city staff and officials to respond to inquiries with useful and up-to-date
information commonly sought by developers, real estate agents and prospective
businesses. This information will also be shared with the Shakopee Chamber of
Commerce, the Shakopee Downtown Partnership and utilized on the city's website.
2. Work with the Shakopee Chamber of Commerce to develop and maintain an accurate
inventory of available land and buildings for commerciallindustrial development.
3. Continue to develop relationships with developers and real estate brokers working in
Shakopee, so that they see the City of Shakopee as a resource and an alley in their
recruitment efforts.
3. Economic .Development Financing
State statute authorizes the City of Shakopee to utilize tax increment financing and tax
abatement to provide financial assistance to economic development and redevelopment
projects. The City has elected to limit its use of these tools to projects that both increase
the city's tax base and provide a significant number of high paying jobs (defined as those
paying at least $14.16 per hour). The City is also in the process of building a Revolving
Loan Fund to provide low-interest loans to worthwhile projects that are not a good fit for
either TIP or tax abatement.
GOAL: The City of Shakopee will have a variety of economic development financing
tools for retention and expansion of existing businesses, new business development, and
attraction/recruitment of businesses from outside the community.
CITY OBJECTIVE: To balance wise stewardship of taxpayer dollars with the need to
present competitive financial assistance offers to prospective business that meet the city's
criteria for well-paying jobs and expansion ofthe tax base.
2006 WORKPLAN:
1. Better define and market the City's existing Revolving Loan Fund.
"
.
2. Explore utility-based economic development financing programs utilized in other
communities.
3. Respond to requests for financial assistance as they arise.
4. Redevelopment
As the economy, business models and consumer preferences change over time; reuse and
redevelopment become a necessary part ofthe growth and development of a city. The
City of Shakopee is interested in encouraging and supporting redevelopment efforts while
respecting the rights of current property owners.
GOAL: For Shakopee's older commercial corridors to remain prosperous economic
centers that provide employment opportunities, valued goods and services and contribute
to a healthy tax base.
CITY OBJECTIVE: To facilitate the revitalization and redevelopment of Shako pee's
older commercial corridors, while respecting the city's history and the rights of current
property owners.
2006 WORKPLAN:
1. Begin conversations with businesses, property owners and residents along the 1 st
Avenue Corridor to discuss their future plans and vision for the corridor.
2. Continue implementation of the Downtown Fayade Improvement Program and
recycling of funds from the Small Cities Development Program.
5. Land Supply
A sufficient supply of land that is available for commercial, industrial and business park
development, with good visibility, roadway access and adequate utilities, is an essential
element of the City's economic development strategy. In order to keep growth of the
City's commercial I industrial property tax base on par with growth of the residential
property tax base, the City needs to preserve land for future commercial I industrial
development.
GOAL: Shakopee will have an ample supply of appropriate land zoned for commercial,
industrial and business park development to keep the growth ofthe commercial I
industrial tax base on pace with residential tax base.
CITY OBJECTIVE: Identify likely parcels 0 f land for future industrial, commercial
and business park development and ensure that planning, zoning, and infrastructure
decisions support their development as such.
4i
+
2006 WORKPLAN:
1. Commission a market analysis of land on Shakopee's west-side to determine its
potential for future commercial/industrial development.
2. Provide input during development ofthe city's 2008 Comprehensive Plan to ensure
that lands most appropriate for future commercial/industrial development are guided and
zoned for such uses, and that transportation infrastructure will serve the needs of these
areas.
New .Business I Entrepreneurial .Development
Entrepreneurship is a central component of a healthy business community. The City of
Shakopee is interested in ways to foster local entrepreneurial activity and new business
start-ups. Homegrown businesses add to the fabric ofthe community and offer the
potential for growth, expansion and spin-off businesses.
Fostering entrepreneurship also involves creating and implementing programs that
augment the supply of information, encourage networking, facilitate the provision of
finance, and seek to create positive attitudes towards entrepreneurial activity.
GOAL: To provide a local environment the removes the impediments to
entrepreneurship, whether they be physical space, information and advice, or innovative
financing sources.
CITY OBJECTIVE:
2006 WORKPLAN:
1. Evaluate the results of initial research on business incubators and proceed with
additional research and/or implementation planning as appropriate.