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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.