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