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HomeMy WebLinkAbout4. SCALE 501: Implementing a Plan for Economic Development Unified Plan for Economic Development Workshop City of Shakopee May 14, 2013 Kent Carlson , CEO, Anderson-KM Companies Panel members: Michael Sobota, Scott County Bryan Tucker, Planning Manager, City of Savage Lisa Freese, Transportation Program Director, Scott Co. Michael Leek, Community Development Director Bruce Maus, President, MausGroup LLC Stacy Crakes, Business Development Manager, ScoScott CDA “LEGO’S” 101 –Transportation Corridor  Basics “Lego’s” 201-Land Use and  Transportation “Lego’s” 301-Support for Economic  Development “Lego’s” 401-Strategies for Success  Tonight--501-“Case Studies in Economic  Development” Commercial/Industrial Case  Study Economic Development Vision  Update needed for your City? SCALE Unified Plan Update-  First Stop Shop Post Recession Economic  Development Strategies A Mixed-Use Development Case Study A Mixed-Use Development Case Study 6 Mixed-Use Overview  Conservation Development  Amenities City Approval Process  Financial Model  7 8 273 acres total  Residential Development = 42 acres  Retail Development = 44 acres  Business Park Development = 90 acres  Conservation/Open Space = 84 acres  9 10 Economic viability to develop large land parcels  within development market cycles of 5-7 years Traffic constraints limited intersections to Service  Level “D” CR 83/16 improvements completed  Assessments payment started  Natural amenities, Dean Lakes, wetlands  Trail links to Southbridge and other parts of the  City 11 Comprehensive Plan  Transportation Plan  Zoning Ordinance  Subdivision Ordinance  Capital Improvement Plan  Watershed and Local Water  Plans 12 Existing Functional Classification Future Functional Classification Legend Local Collector Minor Arterial Principal Arterial 15 Stormwatermanagement infiltration systems  Elimination of invasive species (i.e. buckthorn &  prickly pear) Restoration of natural environment  Oaks savannah  16 Preservation of water quality in Dean Lakes  Created “Open Space” & trail corridors  Allowed for buffers between land uses  17 18 19 Balance road safety, capacity  and predictability Adopt and use standards to; • Ensure street connectivity • & adequate supporting road network; Manage connections to  higher order roads; Use intersection &  interchange influence area design 20 Functional Class MOBILITY VSACCESSMANAGE ROADS BY FUNCTION 21 TYPE OF COUNTY HIGHWAY FUNCTION AFFECTED BY ACCESS TYPE OF ACCESS PRINCIPAL Aor B MINOR COLLECTORLOCAL ARTERIALARTERIAL -Not Permitted Private Determination (urban/urban Residential NotPermitted1/8 MileBased on Other reserve) (3 or less shared Criteria driveways) -1/4 Mile (rural) -Full Accessat 1/4 Commercial Determination Mile Drivewaysor NotPermittedNotPermittedBased on Other -Right-In/Right- Private StreetCriteria Out at 1/8 Mile -Full Accessat 1/4 Mile LocalStreetsNotPermitted1/8 Mile1/8 Mile -Right-In/Right- Out at 1/8 Mile -3/4 Access or -Full Accessat 1/4 Right-In/Right-Out Mile Collector Streetsat 1/2 Mile (urban)1/4 Mile1/4 Mile -Right-In/Right- -Full Accessat 1 Out at 1/8 Mile Mile (rural) -1/4 Mile to 1 Mile -1/4 Mile to 1 Mile (urban)(urban) Minor Arterial1 Mile Full Access1/2Mile to 1 Mile -1/2Mile to 1 Mile -1/2Mile to 1 Mile (rural)(rural) QUESTIONS TO ANSWER; Does your community’s vision and comprehensive plan  reflect the SCALE 50% employment goal? Does your community’s current comprehensive plan  reflect its ? economic vision Does your community have a “vision” statement that  reflects its economic vision in the 2030 Plan ? QUESTIONS TO ANSWER: Does your community have a Plan for public investments needed to support the SCALE 50% Goal? Highway and supportive roads?  Public Sewer?  Stormwater?  Water System?  Parks and Trails?  Information systems?  Phase 1 –Data Gathering Numbers of Jobs –Q2, 2012 CITYPrivate sectorPublic sectorTotal # jobs @ city Belle Plaine1,8432912,134 Elko New Market34024364 Jordan1,1644381,602 New Prague (1,3806282,008 Scott County) Prior Lake2,478 1,765*7,993 Savage6,1418697,010 Shakopee16,5032,36418,867 Scott County totals29,8496,379 *39,978 *includes 3,750 employees in leisure & hospitality category Source: www.postivelyminnesota.com(Quarterly Census of Employment & Wages / Q2 2012) 2012 County Jobs = 40,803 jobs 2030 Jobs Target = 78,000 jobs. additional 37,197 The County needs to grow an jobs between 2012 and 2030! What does a new job mean to our community? Generally, for every 1 high quality job added to a • community, another 1.6 jobs are created elsewhere in the local economy This job multiplier ranges by industry type. For • industries common to Scott Co.: printing and publishing (1.7); fabricated metal products (2.2); wholesale trade (1.9) construction (1.6); nonmetallic mining (2.3)* *Source: US Bureau of Economic Analysis What does a new job mean to our community? Assuming 100 jobs are added to your • community, with a median family size of 3.1 p/hh, the following are the economic benefits to the area**: Spending on housing per year: $3.8 M • Spending on consumables per year = $3.3 M • Spending on transportation per year = $1.5 M • Spending on health care per year = $440,000 • ** Source: City of Savage estimates, 2012 What does a new job mean to our community? GreaterMSPestimates that approximately 15 to • 30% of employees are likely to reside in the local community when a new firm opens or relocates in the metropolitan area. If all 100 employees purchased a median value • home in the community ($230,000), the amount of taxes generated to city, county, school and special districts is estimated at $383,000** ** Source: City of Savage estimates, 2012 Why is it important to attract more jobs closer to home? TransportationScottCountyUnited States Commute Time Minutes28.828.1 COMMUTE MODE Auto (alone)82%75% Carpool7%10% Mass Transit2%4% Work at Home4%4% COMMUTE TIME TO WORK Commute Less Than 15 min.22%28% Commute 15 to 29 min.36%36% Commute 30 to 44 min.26%19% Commute 45 to 59 min.9%7% Commute greater than 60 min.5%8% Source: U.S. Census Bureau American Community Survey, 2007 -2011 Why is it important to attract more jobs closer to home? American workers with lengthy commutes are more likely to report a range of adverse physical and emotional conditions Why is it important to attract more jobs closer to home? The average commute distance for a Scott County worker is 20 miles one way (40 miles roundtrip). Assuming this commute is taking place 5 days a week, in a standard fuel efficient car getting 20 miles a gallon, with today’s average gas price, this commute is costing each worker: $205monthly $2,460 annually This does not include parking fees, or general “wear and tear” of the vehicle County Road 101 Corridor -Shakopee Strengths: Class I and II sites with good access to roads and rail Close proximity to Bloomington Ferry bridge with easy on/off access Cluster of similar uses and industries Includes County’s largest pad- ready site (50+ acres) Planned regional bike trail connecting Shakopee to Minnesota River Valley system County Road 101 Corridor -Shakopee Weaknesses: Lack of public sewer, water and storm water to facilitate more intensive development at eastern edge Some incompatible, adjacent industrial and residential uses Too much land area guided and zoned for entertainment commercial Broadband fiber service would likely require some additional construction costs to serve properties County Road 101 Corridor -Shakopee Opportunities: Potential sites for trans-loading uses (rail to truck) for heavy materials Opportunities for intensifying expansive outdoor storage uses Potential for work-force, higher- density housing along corridor County Road 101 Corridor -Shakopee Threats: Floodplain constraints on properties along the north side of the corridor Perception of too many stoplights and congestion on TH 13 corridor feeding into this area from the east Additional rail traffic could mean more disruptions to local roadway traffic County Road 101 Corridor -Shakopee Major Takeaways: SCALE should explore and research the viability of trans- loading uses and industrial rail uses for this corridor City should consider re-guiding properties from entertainment commercial to industrial This planned economic development corridor is in the right location given existingand plannedinfrastructure (with noted service improvements needed at eastern edge) US 169/CH69 Interchange -Shakopee Strengths: Class III sites with good access and visibility to 169 Large parcels under single ownership Weaknesses: Substantial investments needed to bring interchange, urban services to serve parcels Transmission lines are a site development constraint US 169/CH69 Interchange -Shakopee Opportunities: A future grade-separated full- access interchange Possible location for major distribution center or multi- tenant industrial uses with outdoor storage needs Threats: Proximity to mobile home park could make development of certain uses unlikely Patience to hold out for desired planned uses Time and investments needed to extend public infrastructure US 169/CH69 Interchange -Shakopee Major Takeaways: This gateway area does not have enough rooftops to attract retail commercial development Uses will likely be light industrial, warehousing, distribution This planned economic development area is in the right location given plannedpublic infrastructure This area should be given higher priority to plan for future development QUESTIONS TO ANSWER (EACH CITY); What is the current percent of C/I land in Shakopee? Answer:1. 20%  2. 25%  3. 15%  QUESTIONS TO ANSWER; Question:What is the proposed future  percent of C/I land in Shakopee 2030 Comp Plan? Answer:1. 19.6%  2. 13.8%  3. 25.2%  QUESTIONS TO ANSWER; How many C/I acres (%) are proposed to be added  between 2013 and 2030? Answer:1. 98 acres  2. 216 acres  3. 445 acres  QUESTIONS TO ANSWER; How can Shakopee achieve these goals for C/I  growth, or Does the City need to re-evaluate them due to the  changing economy? City Approval Process City’s Boards & Commissions  City Council  Planning Commission  Neighborhood groups  Environmental Advisory Board  Park & Rec Board  Economic Advisory Board  45 City Approval Requirements Comp Plan Amendment  AUAR Amendments  Mixed-use rezoning conditional use permits  46 City Approval Process Schedule Purchase Agreement w/ Land Owner -March ‘01  Hosted 1Neighborhood Mtg–April ‘01 st  Generated all-industrial site plan –May ’01  Community Feedback Goals  Water quality of Dean Lakes  Traffic issues at County Roads 83/16  Preservation of wetlands  Increase park land / trail corridors  47 48 Industrial Commercial Development Market Analysis August ’01  Vacancies in market increasing  Corporate downsizing  Overall market demand for industrial &  commercial was slowing Overall demand for residential & retail  continued to be strong 49 Community Input Process Sept –Oct ’01  City retained Brauer& Associates to provide  Park & Rec regional input Community desire to protect Dean Lakes and  natural areas Community desire to look at alternative  development use of Dean Lake shoreline 50 51 City Development Schedule Concept DesignJuly 2002 Advisory Commission ReviewNovember 2002 City Council ReviewJanuary 2003 Concept Plan RevisionsFebruary 2003 Scoping Environmental ImpactsMarch 2003 (for residential use) 52 City Development Schedule –cont’d Revising Residential Concepts • May 2003 • Amend AUAR • June 2003 • Comprehensive Plan Amendment • (for residential use) • July 2003 • Rezoning, CUP, PUD, Preliminary Plans • August 2003 • 53 54 City Development Schedule –cont’d Wetland Mitigation ApprovalDecember 2003 Development & Public Improvement December 2003 Agreements Final Plan ApprovalDecember 2003 Land ClosingJanuary 2004 Site ImprovementsMarch 2004 Conservation RestorationMarch 2004 55 Dean Lakes Project Cost Overview Land purchase price = $11m  273 acres gross land area = $.93/sf  176 acres net land area for development = $1.43/sf  Roads, wetlands, conservation areas = $1.43/sf  56 Dean Lakes Project Cost Pursuit Cost = $1,000,000  County Road 83/16 assessment = $3,800,000  Interior public improvements (road, water, sewer)  = $4,200,000 Soil importing & grading = $4,000,000  Conservation restoration = $1,000,000  57 Dean Lakes Project Costs –City Fees Park dedication fee = $1,400,000  Stormwaterfee = $2,100,000  $1,200,000 in regional ponding fee  $900,000 in trunk assessments fee  Grading fee -$100,000  58 Dean Lakes –City Fees (Cont’d) Public improvement fee = $650,000  Sanitary trunk fee = $370,000  SPUC service fee = $425,000  59 Cost vs. Market Conditions $27,000,000+ = Project Cost  273 acres gross = $2.28/sf  176 acres net = $3.54/sf  60 Total Project Cost Land$11,000,000  Improvements$14,000,000  City fees$ 5,045,000  __________ Total$30,045,000 61 Revised Analysis Residential Market Value  Sale to Ryland  295 units @ $25,500/unit = $7,522,500  44 acres retail land @ $5.50/sf=  $10,550,000 90 acres business park land @ ($2.25-2.50)  $2.35 = $9,200,000 Total project value = $27,272,500 below project cost 62 Dean Lake Current Project Status Sale to Ryland Homes completed  Internal infrastructure now completed  63 Completed Transactions Holiday  Goodyear  BNC Bank  Ruby Tuesday  Medical Office Building  Edina Eye Clinic lease  LOI on 9,000 sfinline retail  TrystarHeadquarters (Site selected)  64 65 Anderson-KM Companies New Normal Market Large Scale Projects • ⁻Difficult to Finance Risk of Not Having Sites Ready as Demand Returns • Need for Private/Public Partnerships • 66 November 2012 –CR 21: Morning rush hour cars waiting to get onto Hwy 169 NB 67 An economic development resource created by  SCALE to assist the cities and townships of Scott County. Inward-Facing Data and Service Center  Assist cities and townships to address the needs of businesses o FSS Customers = Cities, Townships and Scott County o FSS must remain unbiased! o 68 2012 County Jobs = 40,803 jobs 2030 Jobs Target = 78,000 jobs. additional 37,197 The County needs to grow an jobs between 2012 and 2030! 2,067 NET JOBS Over 18 years = approximately per year 69 2011 –2012 Jobs Comparison CITYTotal # jobs 2011Total # jobs 2012 Percent Change 1.4% Belle Plaine 2,1052,134 Elko New Market 3353648.7% 3.0% Jordan 1,5561,602 -3.1% New Prague 2,0732,008 1.7% Prior Lake *7,857*7,993 3.3% Savage 6,7867,010 -2.3% Shakopee 19,32018,867 Scott County *40,032*39,978-0.1% totals *includes 3,682 (2011) and 3,750 (2012) employees in leisure & hospitality category Source: www.postivelyminnesota.com(Quarterly Census of Employment & Wages / Q2 2011, 2012) 3.8% TARGET ANNUAL GROWTH TO REACH 2030 GOAL = Add QUALITYjobs and decrease skills gap  Increase the percentage of residents employed within the  County Retain our current jobs and businesses –Business  Retention & Expansion (BRE) In 2011 –77.3% of our job growth in Scott County came from  business expansions Must ensure sustainability for our current and  future businesses 71 •Another resource available when needed •Provide building and site selection guidance Staff Extension •Business Retention and Expansion assistance •Marketing guidance and support (including production) •Research & information gathering •Comprehensive data and information center Reference Desk •Source for local, regional, and state programs and incentives •Quick response customer service •Results tracking –debrief information gathering •24/7 Promotion of the communities and available properties in Scott County Webmaster •One stop access to available properties with interactive mapping and related information compiled from various locations •Connections/links to local and state resources •Conduit to an extensive network of resources •Provide business development training and customer service Consultant assistance •Evaluate and streamline processes to make it easier to do business in Scott County 72 FSS Advisory SCALE Greater MSPDEED Committee Prospective Existing Brokers Scott County BusinessesBusinesses Other MSP FIRST STOP TownshipsSMSC Cities CountiesSHOP City EDA/EDAC DevelopersMNCAR Bankers City Chamber Utility WIB InvestorsOthers of Commerce Companies TransitParksWatershed Primary Objectives (PhaseI)Progress to Date(March 2013) Create single point of contactMeetings, meetings, meetings: all cities, county,Greater and build networkMSP, chambers, DEED, Township Association, many others Createand utilize information Sharepointdocument sharing w/ cities; Data collection and management systemdevelopment of both an internaland externalsite in progress; Moving forward with Salesforce(potential collaboration with DEED and Greater MSP) Developstrong customer Gathering information-Ongoing evaluations. Makethis our service culturecompetitive advantage. Preparationof reports, Involvement with 7 projects; Proposal template for the City proposals & marketing of Shakopee; Two direct Scott County leads: materials for communities* Food distribution co. –1 community * Injection molding co. –3 communities Business/workplan creationFSS Advisory Committee formed; further direction based on feedback from trainingworkshops Be patient as the FSS develops!  Use the tools and resources the FSS offers  Help facilitate building the FSS network  Provide information and data when requested  Keep the FSS informed regarding all pursuits in  your community Stacy Crakes Business Development Manager 952.496.8613 scrakes@scottfss.org www.scottfss.org Current Office Location:Future Office Location: Scott County Government Center Marshall Road Transit Station 200 4 th Avenue West SW corner Marshall Rd & Hwy 169 Shakopee, MN Shakopee, MN (Anticipate move in September 2013) 76 Cities Economic Development lead  Buildings and Sites  Local marketing and business retention  Local Decision-making  First Stop Shop Tools, database and City staff extension for business development  Marketing Link to Metropolitan Region  County Resource Provider  Infrastructure (Transportation, Fiber backbone, Transit, WMO)  Knowledge and Staff (Work Force Center)  Collaboration with Cities, Townships and SMSC  Managing the Process:  Establish your community’s key contact/first stop for  economic development opportunities. Be Clear About Roles at Each Stage:  Mayor and City Council  Planning Commission  Economic Development Authority  County Partner/SCALE First Stop Shop  Staff  Consultants  Apply the Principles and Processes that You  Have Put in Place Build Positive Public Sector “Culture”!  A key principle is to be prepared for  economic development opportunities: Economic Development;  Make sure that infrastructure is, or will be extended in a  timely way, available to the areas that you have guided for Job development. Define City Role in Development Process  Make decisions regarding the types and amounts of  Incentivesyour community is willing to provide in the appropriate circumstances. Put in place policies that  a) provide criteria for giving assistance for economic  development projects and b) define the process for approval of local assistance  A key principle is to be prepared for  economic development opportunities: City Role in Economic Development leadership- Recession Realities Option A:  Let Private Sector do it-wait and see  Developers have disappeared  Private financing for development infrastructure limited  Time frame is major issue for business location decisions  Option B:  Proactive Role –determine appropriate risk/reward  Range of options with tools/partners available  Examples from other communities  A key principle is to be prepared for  economic development opportunities: City Role in Economic Development –tools Chapter “429” assessments  Land “Assembly”  Utility trunk fund strategies  Tax Increment Financing-Including Re-  Development Tax abatements  Stormwater area planning  Fiber access--leadership options  429 Street Assessments and Economic Development City of Savage conducting feasibility study to extend 130 th Street (along with sewer and water) to the edge of Beckhoff property and assess back costs to property owner over time. four new C/I “pad-ready “sites -Street extension will open up to on this landlocked parcel deferred -Costs will be up to 5 years or until the time of pad development -15-year bond; $750,000 in estimated design and construction costs for road, sewer, water magnet for development -City expecting Beckhoffbuilding to be a in this planned C/I corridor 429 Street Assessments and Economic Development 84 86 Is it the City’s intent to continue with  substantial growth well into the future given SMSC holdings? If it is, how will the City work  strategically with the Township(s) to make additional C/I land available for development? 87 Do City and Utility Plans currently  consider the SMSC land holdings? Or, is there a need to review and revise  the Plans to reflect where Infrastructure will actually be needed to accommodate new job growth? 88 SCALE’s planning efforts identify the  CR69/TH169 area/corridor as a highly important corridor for future job growth. Should the City plan for extending  utilities in the near term to support C/I development at this location? 89 SCALE’s planning efforts identify the  CR101 Corridor as a highly important corridor for future job growth. How can the City enhance existing  investments in: Roads, infrastructure and utilities  Rail facilities  Industrial sites  90 Should the city focus its efforts in  economic development on… Attraction of new job creating development?  Redevelopment of existing sites in key  corridors such as CR101 and CR83 for job creating development? Some combination of each?  91 Discussion/ Evaluation 92